The US port worker agreement has now received the necessary ratification to proceed, which means it will remain in place until 30 September 2030.
Key elements of the ILA-USMX pact include a 62% increase in wages and guaranteed safeguards against job losses due to automation.
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The deal also accelerates pay progression for newly hired ILA workers and ensures full reinstatement of container royalty funds to the association.
There will also be enhanced contributions toward defined contribution pension plans.
The agreement bolsters MILA, the health care plan managed by the ILA, and presents a solution to longstanding issues regarding vacation and holiday pay. These provisions are part of a broader array of benefits included in the historic contract.
Tentative agreement for the new contract was negotiated in January this year, averting a potential port strike during what the American Apparel & Footwear Association (AAFA) said was a “critical time” for fashion supply chains.
ILA president Harold Daggett, who acted as the union’s chief negotiator, said: “I am pleased to announce that thousands of ILA longshore workers covered by this Master Contract have overwhelmingly supported its ratification with nearly 99% in favour, and we now have labour peace for the next six years.
“It was a tough contract to negotiate and even took a three-day coast-wide strike in October 2024. The ILA stayed strong and unified throughout and successfully won the greatest contract in ILA history and maybe the strongest Collective Bargaining Agreement ever negotiated by any union.
“Our ILA rank-and-file members are not only the greatest longshore workers in the world, but they are also the strongest, most powerful union members anywhere. Their courage and determination helped win them this landmark contract.”
US President Donald Trump expressed his support following a December 2024 meeting at Mar-A-Lago that bolstered the ILA’s stance against job-threatening automation.
Additionally, USMX lead negotiator for management Paul DeMaria played a key role in steering negotiations towards a settlement and avoiding further strikes.
“Paul was uniquely qualified to move negotiations in the right direction and his appointment to this new role was instrumental in avoiding a second strike,” Daggett added.
With this ratified agreement, Daggett envisions a future where ILA ports thrive and expand their influence in partnership with USMX.
The formal signing of this new agreement between ILA and USMX is scheduled for 11 March 2025.
Recently, trade associations, including the Retail Industry Leaders Association (RILA) implored the ILA and the USMX to finalise a contractual agreement prior to the expiration of the current workers’ contracts on 15 January 2025.
