ILA and USMX Reach Tentative Agreement, Trump’s Support Cited as Key Factor

By Ken Miller, Senior Transport Journalist

Late Wednesday, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced a tentative agreement on a new master contract covering ports from Maine to Texas. This significant development averts the threat of a port strike and ensures six years of labor peace for shippers along the US East and Gulf coasts, pending approval from ILA locals and USMX members.

The agreement addresses a contentious topic: the integration of automation and new technologies within marine terminals. While the specific draft language of the tentative agreement has yet to be released, sources indicate that ports will have some flexibility in adopting advanced technologies in exchange for a commitment to maintain and potentially create more longshore jobs. This compromise aims to modernize port operations while prioritizing job security for current dockworkers.
 
Negotiations for the master contract initially stalled in November due to union concerns about job impacts from the deployment of semi-automated rail-mounted gantry cranes (RMGs) at marine terminals. However, the new agreement is designed to protect existing ILA jobs while establishing a framework for modernizing East and Gulf coast ports, making them safer, more efficient, and better equipped to sustain robust supply chains.
 
Details of the agreement remain confidential until both parties finalize their approval. However, the 45,000 dockworkers at East and Gulf coast ports will continue working under the current contract until the tentative agreement is ratified by local union wage-scale committees. Early indications suggest support for the contract, negotiated by ILA President Harold Daggett and Executive Vice President Dennis Daggett.
 
This breakthrough followed four days of discussions in Teaneck, N.J., which included side conversations about the impact of automation on longshore jobs. These negotiations resumed on January 7, focusing on benefits and specific crafts, including checkers and clerks, ahead of a looming strike deadline set for January 15.
 
Notably, the ILA sought support from President-elect Donald Trump, who advocated against automation’s adverse effects on jobs. In a statement issued Wednesday, the ILA expressed gratitude to Trump for his “bold stance” that helped avert a second coastwide strike. ILA President Harold Daggett remarked on Trump’s unwavering support, highlighting how it bolstered the union’s position to protect American longshore jobs against the challenges posed by automated terminals.
 
Implications for Shipping and Labor
 
1. **Stability in Port Operations**: The agreement prevents potential disruptions in port operations, which is crucial for maintaining smooth supply chain logistics along the East and Gulf coasts. This stability benefits shippers, importers, and exporters alike.
 
2. **Adaptation to Technology**: The framework for implementing new technologies while safeguarding jobs indicates a shift towards modernization without sacrificing workforce stability. This balance could lead to more efficient operations at ports, positively impacting shipping times and costs.
 
3. **Political Influence on Labor Relations**: Trump’s involvement underscores the potential for political figures to impact labor negotiations. His support may set a precedent for future engagements between unions and political leaders, particularly as technology continues to reshape the labor landscape.
 
4. **Future Negotiations**: The successful resolution of this contract could set a positive tone for future labor negotiations in other sectors, particularly those affected by automation, as it demonstrates that collaboration between unions, companies, and political figures can lead to mutually beneficial outcomes.
 
In summary, the tentative agreement between the ILA and USMX, bolstered by Trump’s advocacy, not only promises to enhance labor stability at crucial ports but also sets a framework for navigating the complexities of automation in the maritime industry.

Source: USMX, January 8th 2025

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