A scenario where 36 ports stretching from Maine to Texas simultaneously shut down, leaving cargo ships stranded and supply chains paralyzed, has been averted following the signing of a new six-year contract between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX). The agreement brings labor peace to East Coast and Gulf Coast ports while securing wage increases for dockworkers and establishing crucial protections regarding automation.
Contract Details and Ratification
The new contract, retroactively effective from October 1, 2024, through September 30, 2030, was overwhelmingly approved by ILA members with nearly 99% support. The ILA Wage Scale Committee unanimously endorsed the tentative agreement reached in early January between the two parties.
ILA officials highlighted that the agreement includes record wage increases and comprehensive protections against automation, which had been a key sticking point in negotiations. After multiple rounds of discussions, both sides reached consensus on all matters by January 8, paving the way for the landmark agreement.
Key Provisions and Statements
"I'm proud to have achieved this new agreement for my ILA members with the help of my ILA Wage Scale Committee," said ILA President Harold Daggett. "We secured a record 62% wage increase; full protection against automation; accelerated wage progression for new hires; returned all container royalties to ILA; and enhanced our MILA healthcare plan while increasing contributions to the money purchase plan."
Paul Demaria, USMX Executive Vice President and Chief Operating Officer, noted that USMX members unanimously supported the agreement, which he said "advances our mission to create modern and safe working conditions while strengthening supply chain efficiency to ensure U.S. companies can access global markets."
Path to Agreement
The negotiation process faced significant challenges. After their previous six-year contract expired on September 30, workers staged a three-day strike beginning October 1—the first coastwide work stoppage since 1977—affecting 36 ports from Maine to Texas. The parties resumed negotiations in November to address outstanding issues ahead of a January 15, 2025 deadline.
Former President Donald Trump publicly expressed support for the dockworkers during negotiations, stating on his Truth Social platform: "I've studied automation extensively. The savings don't justify the harm to American workers. Foreign companies making record profits in our market should invest in our incredible workforce rather than expensive, replaceable machines."
ILA President Daggett credited Trump's intervention with helping prevent a second potential strike, saying his "bold stance demonstrated unwavering support for protecting American dockworkers from automated terminals."
Industry Impact
The National Retail Federation welcomed the agreement, with Vice President Jonathan Gold stating: "This contract provides critical certainty for retail supply chains and avoids further disruptions. It also enables needed modernization efforts essential for port growth and national supply chain resilience."