ILA Ratifies Six-Year Labor Agreement, Bringing Peace to East & Gulf Coast Ports
The dockworker union that previously brought half of the U.S. container trade to a halt last October has voted to ratify a new labor contract with their port and ocean carrier employers. Nearly 99% of the workers backed the agreement, as announced by International Longshoremen’s Association (ILA) President Harold Daggett. “We now have labor peace for the next six years,” he stated.
The ILA-USMX accord is positive news for importers, retailers, and consumers who have been anxious due to the uncertainty surrounding the Trump administration’s trade policies and tariffs. Jess Dankert, supply chain vice president at the Retail Industry Leaders Association, expressed that “retailers welcome this resolution to the supply chain uncertainty that has lingered along the East & Gulf Coast for some time.”
The ILA had initiated a walkout at every major container port from Houston to Boston when their previous contract with the U.S. Maritime Alliance expired on October 1. Under pressure from the Biden administration, the ILA agreed to suspend the strike for three months in exchange for a 62% wage increase over the six-year contract.
Although the strike lasted only three days, it halted approximately half of the country’s containerized trade, leading to a backlog of ships and a supply chain disruption that took weeks to resolve. However, the temporary agreement left unresolved issues regarding technology, particularly the use of semi-automated cargo handling equipment. The union declared an impasse in November regarding this matter.
Just over a month before the new deadline, Donald Trump pledged his support for the dockworkers following a meeting with Daggett and his son, Dennis. “I’ve studied automation and know just about everything there is to know about it. The amount of money saved is nowhere near the distress, hurt, and harm it causes for American workers,” Trump stated in a social media post on December 12.
The ILA and USMX announced a tentative deal a week before the January 15 deadline. In a video to union members, Daggett indicated that the new contract is worth around $35 billion—nearly double the value of the previous agreement. He highlighted enhancements to the union’s health care plan, royalty funds, and other benefits.
Importantly, the new contract includes full protection against job-replacing automation, a critical issue during negotiations. Employers also benefited from the agreement, with Ports America CEO Matthew Leech describing the contract as “a real partnership agreement.” He noted that while the deal addresses automation, it also allows employers to implement technology as long as it does not result in job losses.
In his address prior to the ratification vote, Daggett acknowledged employers’ concerns about the reliability of longshore labor. “How can we fight against automation and then go and tell companies we are not going to show up? This has to stop,” he asserted.
Employers received assurances that ILA leadership would collaborate with local chapters to improve labor reliability, which port operators have identified as a significant source of uncertainty. USMX members unanimously approved the contract last month, and both parties are expected to sign it at a meeting during the week of March 10.
Harold Daggett has also pledged to convene longshore labor groups globally once the ILA-USMX contract is finalized, declaring, “This contract, when ratified, will become the gold standard among dockworker unions globally.”
