JANUARY 10TH, 2024
CT MarketAlert: Historic Agreement Secures Stability for US Ports: Key Highlights from the ILA-USMX Deal
As of January 10, 2025, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative six-year master contract agreement, averting a potential strike at East and Gulf Coast ports.
What We Know…
Key Outcomes of the ILA-USMX Tentative Agreement
- Wage Increase: Dockworkers are set to receive a substantial pay raise of nearly 62% over the six-year period.
- Automation Restrictions: The agreement introduces new limitations on automation to protect existing jobs. Employers planning to implement technologies, such as semi-autonomous cranes, are required to hire additional dockworkers for each new piece of equipment. Full automation and the use of artificial intelligence that could replace workers remain prohibited.
- Port Modernization: While restricting automation, the deal allows for the introduction of new technologies aimed at modernizing ports, enhancing safety, and improving efficiency without reducing staffing levels.
- Economic Stability: The agreement is expected to stabilize supply chains and cargo prices, preventing disruptions that a strike could have caused. Major stakeholders, including the National Retail Federation, view this development as crucial for port modernization and supply chain resilience.
- Government Involvement: The Biden administration played a role in facilitating the agreement, emphasizing its benefits for workers and the economy.
The tentative agreement is subject to ratification by ILA members, a process expected to take several weeks. Until then, operations will continue under the current contract to ensure uninterrupted port activities.
Additionally, the ILA credited President-elect Donald Trump for his support during the negotiations, highlighting his opposition to automation that could harm American workers.
This development has been met with relief by various industries, including the apparel sector, which views the agreement as crucial for maintaining supply chain stability during a critical time.
📰 Additional Articles and Resources…
US port strike called off as ILA and USMX reach ‘tentative’ agreement
Shippers can breathe a sigh of relief, the east and Gulf coast port strike slated to start next week looks set to be called off – and freight rates could ease.
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ILA, USMX reach tentative deal on 6-year contract
The International Longshoremen’s Association and the United States Maritime Alliance reached a tentative agreement on a six-year contract covering workers at East and Gulf Coast ports, according to a joint statement released Wednesday night.
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Statement from President Joe Biden on the ILA and USMX Tentative Agreement
Collective bargaining plays an important role when it comes to building a strong economy from the middle out and the bottom up.
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With Port Strike Averted, Dockworkers Draw New Curbs on Automation
Unionized dockworkers secured a big pay raise and new guardrails against future uses of technology at East Coast and Gulf Coast ports in a tentative labor deal reached with employers about a week before a strike deadline.
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Second US port strike averted as union, employers reach deal
The union representing 45,000 dock workers on the U.S. East and Gulf Coasts and their employers on Wednesday said they reached a tentative deal on a new six-year contract, averting further strikes that could have snarled supply chains and taken a toll on the U.S. economy.
Read More
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