Following a tense negotiation process, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have reached a tentative agreement on a new six-year master contract. The agreement comes after the Jan. 15 deadline and ensures that both sides will continue to operate under the current contract until a ratification vote is scheduled.
Details of the agreement have not been released to allow ILA rank-and-file members and USMX members to review and approve the final document. Sources familiar with the contract revealed that a compromise on automation and semi-automation was key to reaching the agreement. Full automation was off the table, but USMX has the ability to implement technology to modernize ports, while the ILA has guarantees of specific jobs associated with any new equipment.
ILA President Harold Daggett credited President-elect Donald Trump’s support as “key” to securing the tentative contract. Trump’s endorsement and involvement in the negotiations were seen as crucial in reaching a resolution.
The agreement has been welcomed by industry associations such as the American Apparel and Footwear Association and the National Retail Federation. These organizations emphasized the importance of avoiding port shutdowns and ensuring the timely arrival of retail goods for consumers. The deal will also pave the way for modernization efforts at ports, essential for future growth and the resilience of the nation’s supply chain.
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