ILA and USMX Approve Tentative Contract Agreement for Dockworkers

The International Longshoremen’s Association (ILA) and the U.S. Maritime Exchange (USMX) have officially approved the tentative contract agreement for dockworkers at U.S. East Coast and Gulf Coast ports. This significant development sets the stage for the contract to be presented to the rank-and-file members for a vote scheduled on Tuesday, February 25.

ILA President Harold Daggett expressed his confidence in the agreement, stating, “I believe it is the greatest ILA contract, and the greatest contract negotiated by a labor organization.”

The ILA delegates, along with more than 200 delegates, unanimously approved the tentative agreement, which takes the form of a Memorandum of Settlement between USMX and the ILA, supplementing and amending the current Master Contract. The next step involves presenting the contract to the ILA rank-and-file members for ratification.

On the other hand, USMX confirmed that its membership had also unanimously approved the Master Contract during its membership meeting held last month.

Contract Terms and Automation Concerns

While the specific terms of the contract have not been disclosed, one of the key contentious issues revolves around automation and semi-automation at the terminals. Wages are reported to have seen a substantial increase of over 60%, along with improved benefits.

The terminal operators emphasized the need for productivity enhancements due to limited space for expansion and growing demands. They proposed maintaining the existing language that establishes a committee to review any proposed new systems or automation, including what the ILA refers to as semi-automation.

However, the ILA has been firm in its stance against any form of automation or semi-automation, calling for a reversal of previous agreements.

Challenging Negotiations and Future Outlook

Daggett acknowledged the complexity of the negotiations, describing it as possibly the most challenging in ILA history. He emphasized the significance of the contract in securing the future of the industry amidst evolving dynamics.

The ILA engaged in a three-day strike in October, during which the Biden administration urged employers to make wage concessions. In December, President-elect Donald Trump voiced strong support for the ILA’s position against automation.

After several breakdowns and contentious exchanges, a final agreement on the contract terms was reached on January 8, ahead of the deadline. If ratified, the new contract and its benefits will be retroactive to October 1, 2024, and remain in effect until September 30, 2030.