ILA and USMX Reach Tentative Agreement, Averting East and Gulf Coast Strike

09 Jan ILA and USMX Reach Tentative Agreement, Averting East and Gulf Coast Strike

Shippers can breathe a sigh of relief as the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative agreement on a new six-year master contract, avoiding a potentially disruptive strike slated for January 15, 2025.

The agreement will maintain operations under the current contract until the ILA’s wage scale committee schedules a ratification vote and USMX members review and approve the new terms.

Key Points from the Agreement

• Job Protection and Modernization:
  The agreement safeguards existing ILA jobs while framing technology as a tool for creating new employment opportunities. This approach aims to modernize East and Gulf coast ports, making them more efficient and resilient.
• Avoided Freight Rate Hikes:
  The agreement averts a strike that could have led to supply disruptions and higher freight rates. Analysts had predicted a potential rate spike due to ships idling unproductively during a work stoppage.
• Automation Compromise:
  Automation, a contentious issue, has been positioned as a complement to the workforce rather than a replacement. This compromise ensures a cautious approach to technology integration, balancing innovation with labor concerns.

Political Influence

The ILA credited President-elect Donald Trump for his role in facilitating the agreement. ILA President Harold Daggett acknowledged Mr. Trump’s support for protecting American longshore jobs and credited his intervention as pivotal in reaching the tentative deal.