US East Coast ports strike averted

The threat of a renewed coast wide port strike from Maine to Texas on 15 January has been lifted after employers, represented by the USMX, and the unions - ILA – reached a tentative deal on outstanding issues for a new master labour contract.

“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 on January 15, 2025,” the two sides said in a joint statement.

“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.”

The tentative agreement still needs to be ratified by the ILA’s full Wage Scale Committee and USMX members. The two parties said they would not be releasing details of the tentative deal pending its ratification.

The ILA and USMX agreed a tentative deal on a 62% increase in wages over six years for dockworkers in early October last year following a three-day strike that paralysed ports on the US East Coast. However, the pay deal was subject to the two sides reaching agreement on other outstanding issues – in particular automation and semi-automation - by 15 January this year with the ILA retaining the right to strike.

Related:Deadline for cargo to beat possible US port strike passed

Agreement over outstanding issues looked far from certain with the ILA walking away from official negotiations after two and half days in mid-November citing insistence by employers on introducing semi-automation. The ILA has been publicly steadfast in its insistence that it would not accept any form of automation of jobs done by its members.

Shipping lines appeared sceptical on an agreement being reached before the deadline with a number of major carriers announcing surcharges should there be labour disruption after 15 January.

CNBC reported earlier this week following secret talks between the ILA and USMX on Sunday, ahead of the resumption of official negotiations, that agreement was trying to be sought on a deal where alternative union worker jobs would be guaranteed in cases of the introduction of semi-automation at ports.

In a statement posted on social media ILA President Harold Daggett credited the support of incoming US President Donald Trump with the striking of the new contract.

Dagget said the meeting with President-elect on 12 December last year was “the chief reason the ILA was able to win protections against automation for his 85,000 members, and negotiate a tentative Master Contract Agreement”.

Related:Trump backs dockworkers in port automation battle

“President Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his statement “heard round the world” backing our position to protect American longshore jobs against the ravages of automated terminals,” he stated.

For the incoming President the tentative deal avoids a highly disruptive port strike due to start just days before his inauguration on 20 January.