Washington, D.C. (January 9, 2024): Just one week before dockworkers from Maine to Texas were set to resume their strike, the International Longshoreman’s Association (ILA) and the U.S. Maritime Commission (USMX) announced a deal on a new master contract. The contract will now be voted on by ILA members and once the contract is ratified, the details will be made public.
The ILA initially went on strike in October as contract talks stalled. The two sides agreed on a 62 percent wage increase for dockworkers and the ILA returned to work after just three days. Contract talks continued on the outstanding issues with a deadline of January 15 to resolve them or the strike would resume. In November, the ILA walked out of talks over automation at the ports threatening union jobs. The ILA and the USMX commissioned separate studies on the impact of automation on jobs; the ILA’s report found lost jobs and the USMX’s report found no negative impact on the workforce. USMX argued that limited automation was needed to improve efficiency and keep U.S. ports globally competitive.
In anticipation of a strike, shipping lines announced policies on laden and empty containers and surcharges to cover costs incurred due to the strike. Shipping companies did not implement any new policies in advance of a potential strike.
After meeting with ILA leaders in Florida, President-elect Trump publicly came out on the side of the ILA and the protection of U.S. jobs. The USMX worked to reach a deal prior to Mr. Trump returning to the White House. Ultimately, the two sides reached an agreement on automation at the ports. The ILA gave President Trump credit for securing a new contract and avoiding a strike. With labor peace at East and West Coast Ports for the next four years, a new rail labor contract, and a UPS agreement, the future looks brighter for domestic supply chains.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].