The International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) have reached a tentative six-year labor agreement.
Announced in a joint statement on January 8, the deal still requires ratification by both parties.
To ensure continuity, the current contract will remain in effect until the ILA’s Wage Scale Committee convenes to vote on the deal and USMX members finalize their approval.
The agreement is being hailed as a significant victory for labor and industry alike. It promises to safeguard existing jobs while fostering innovation and modernization at ports, ensuring the resilience of critical supply chain infrastructure.
“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage,” the statement read.
“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports – making them safer and more efficient and creating the capacity they need to keep our supply chains strong.”
Earlier negotiations
In October, the ILA and USMX reached an agreement on wages, securing a 10% hourly pay increase in the first year and a cumulative 62% increase over the six-year tentative deal. That wage agreement brought an end to a three-day strike, allowing workers to return to their jobs while negotiators resumed talks to finalize the remaining terms of the contract.
Mike Seyfert, CEO of the US National Grain and Feed Association (NGFA), praised the resolution, emphasizing its importance to the agricultural sector.
“Both sides should be commended for sitting down and working out a compromise that benefits the dockworkers and their employers alike, and we are hopeful that this deal will be ratified and made official quickly. It is a relief that these vital ports will continue to operate and that shipping channels will remain open for US agriculture.
“America’s grain and feed industry depends on a fully functioning transportation system, and when any part fails, it can drive up transportation costs and jeopardize valuable customer relationships. Given current economic conditions, we simply cannot afford disruptions.”
The ratification process is now being closely watched by stakeholders across industries.
