ILA Ratifies New 6-Year Contract Bringing “Labor Peace” to Ports
The International Longshoremen’s’ Association (ILA) officially ratified a new 6-year contract on Tuesday, February 25, marking the end of a contentious negotiation period. The ILA is touting the new agreement as the “gold standard” for dockworker unions worldwide, emphasizing the promise of “labor peace” and collaborative efforts with USMX to foster growth across all ILA ports.
ILA President Harold Daggett, who led the negotiations, described the contract as a challenging but ultimately rewarding process. Key highlights of the agreement include a notable 62 percent wage increase, accelerated raises for new ILA members, container royalty funds, and improved benefits like healthcare coverage. Daggett estimated the total value of the contract to be around $35 billion, nearly double the previous deal.
The terms of the contract are retroactive to October 1, 2024, when the previous agreement expired. Wage increases, initially postponed after the initial agreement in October, are now in effect. Encompassing approximately 35 ports from Maine to Florida and along the Gulf Coast, the contract is set to run until September 30, 2030.
Key Wins and Compromises
President Daggett hailed the contract as the most significant in ILA history, highlighting its provisions for full protection against automation. While specific details on this aspect remain undisclosed, reports from sources like the Associated Press and Bloomberg suggest a compromise allowing for the introduction of technology as long as it does not jeopardize jobs. Operators, including Mathew Leech of Ports America, indicated that automation was distinguished from other efficiency-improving technologies. The new agreement appears to grant more flexibility in adopting modernizing technologies.
Previous requirements for technology proposals to undergo review by a committee, including union representatives, remain intact. The Port of New York New Jersey, for instance, confirmed the absence of automation at its terminals, acknowledging the need for technological advancements to enhance growth and productivity.
Focus on Labor Reliability
Bloomberg’s reports also noted concessions made on issues related to labor reliability and absenteeism. Daggett emphasized the importance of attendance and reliability in combatting automation, urging members to prioritize these factors to maintain job security and oppose automation.
Both the ILA board and the USMX members, representing terminal operators and shipping companies, had previously endorsed the new contract. A formal signing ceremony is scheduled for March 11 to commemorate the commencement of the 6-year agreement.