New Six-Year Contract for U.S. Dockworkers Ratified

More than 45,000 U.S. dockworkers represented by the International Longshoremen’s Association (ILA) have ratified a new six-year contract, solidifying a deal that includes significant pay raises and ensures labor peace until 2030.

The terms of the contract, which were agreed upon by the ILA and the United States Maritime Alliance (USMX), feature a substantial 62% wage increase over the contract’s lifespan. This agreement comes after both parties reached a consensus on wages in October, following a three-day strike that led to shipping price spikes and cargo backlogs at affected ports.

While the wage issue was settled in October, disputes over automation-related matters persisted until January when a tentative deal was finally reached. The new contract, effective from October 1, 2024, to September 30, 2030, raises the hourly base rate for workers to $63 from $39, positioning longshoremen among the highest-paid blue-collar workers in the U.S.

Aside from wage hikes, the contract also accelerates pay raises for new ILA workers, enhances healthcare plans, increases employer contributions to retirement plans, and safeguards workers from potential threats of increased automation. The contract was approved by an overwhelming 99% vote from the workers, and the formal signing is scheduled for March 11.

“We now have labor peace for the next six years,” stated ILA President Harold Daggett. He estimated that the new contract will cost employers around $35 billion. The agreement brings relief to shippers operating in an unstable environment due to various factors such as disruptions in the Red Sea and looming tariff threats.

Both the ILA and USMX acknowledged President Donald Trump’s role in facilitating the agreement on automation issues. The 36 ports affected by the contract are some of the busiest in the U.S., including the Port of New York and New Jersey, collectively accounting for over half of the country’s imports.

USMX represents major shipping companies like Maersk’s APM Terminals and COSCO Shipping’s U.S. subsidiaries. The successful negotiation of this contract underscores the importance of labor peace in ensuring the smooth operation of these critical ports.

Overall, the ratified contract signifies a significant milestone for U.S. dockworkers, guaranteeing stability and favorable working conditions for the next six years.

Sources: Reuters