Just before the January 15, 2025, deadline (and days before President-elect Donald Trump’s January 20, 2025, inauguration), the International Longshoreman’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative deal on a new six-year contract. On January 8, 2025, the union and USMX resumed negotiations for the first time since November and came to an agreement about a week before the January 15, 2025, deadline. The deal prevented another strike for 36 U.S. ports.
Terms of the deal were not disclosed, but ILA and USMX have agreed to continue operating under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract. The two sides issued 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.”[1]
October 2024 Strike
In October of 2024, U.S. ports from Maine to Texas shut down when the union representing about 45,000 dockworkers went on strike for the first time since 1977. The union went on strike over pay disparities and the automation of tasks at 36 U.S. ports. Additionally, to protect job security, the ILA demanded a complete ban on the automation of cranes, gates, and container movements used in loading or unloading cargo.
The 36 U.S. ports that were affected included Baltimore, Brunswick, Georgia, Philadelphia, Boston, New York, New Jersey, Virgina, North Carolina, South Carolina, Florida, Alabama, Houston, and New Orleans, which handles coffee from South America and Southeast Asia, various chemicals from Mexico to North Europe, and wood products from Asia to South America.
Impact of the Strike on the U.S. Economy
If the October strike had lasted more than a few weeks, the shortages of goods on store shelves would be at risk. In addition to a shortage, another strike could mean delays and higher prices on hundreds of goods.
Issues at Stake –Wages and Automation
In October, the union reached a tentative deal as to wages, thus suspending the three-day strike until January 15, 2025. The union’s opening demand was a 77% pay raise over six years. The ports agreed to increase wages to 62%. The temporary deal provides port workers with a 62% wage increase over the next six years, which results in the union’s highest paid workers earning $63 per hour in the final year of the contract, which is an increase from the $39 per hour.
The issue that remained in dispute was the use of automation at ports. Employers argued that automation upgrades would increase port efficiency and increase the ability to handle more cargo, but union leaders said it would cost jobs and harm national security.
Ten of the largest U.S. ports use some kind of automation technology to move cargo, according to a 2024 Government Accountability report.[2] These include automated gates, which let trucks and containers move through cargo terminals with limited worker interaction, digital platforms to streamline logistics and supply-chain data, and trackers for equipment and containers.
President Biden and Donald Trump’s Positions
During the October strike, President Biden refused to invoke the Taft-Hartly Act, to force the ports to reopen. The Act allows the federal government to seek a court injunction against a strike to allow both parties to continue negotiations during an 80-day cooling off period.[3] Instead, President Biden encouraged negotiations.
In December, Donald Trump signaled support for union workers. Following a meeting with the ILA President, Harold Daggett, Trump said regarding automation projects the “amount of money saved is nowhere near the distress hurt, and harm it causes for American Workers, in this case, our Longshoreman.” Daggett cited this meeting as the “chief reason” USMX and ILA were able to swiftly reach a deal on automation.
President Biden said in a statement on January 8, 2025, that the tentative agreement between the ILA and USMX “shows that labor and management can come together to benefit workers and their employers.”
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