ILA Members Ratify 6-Year Contract with Accommodations for Technology

ILA union members — ILA rank-and-file ratify new 6-year labor contract for U.S. East and Gulf Coast ports (ILA)

The membership of the International Longshoremen’s’ Association officially ratified the new 6-year contract on Tuesday, February 25, bringing to close one of the most contentious contract negotiations in decades. The ILA is calling the new contract the “gold standard” for dockworker unions globally while saying with the ratification there would be “labor peace” and that the ILA would be working in partnership with USMX to help all ILA ports grow and flourish.

“It was a tough contract to negotiate,” said ILA President Harold Daggett who served as the union’s chief negotiator. Among the terms the union is highlighting is a 62 percent wage increase, accelerated wage raises for new ILA workers, container royalty funds for the ILA, and improved benefits including healthcare for members. Daggett in a message to members said the new contract was worth about $35 billion, nearly twice the previous agreement.

The terms are retroactive to October 1, 2024, when the prior contract expired. Wage increases had been deferred after terms were reached in October until the full contract was completed. The new contract covers approximately 35 ports from Maine to Florida and along the Gulf Coast. It runs till September 30, 2030.

Daggett is publicly declaring a key win saying it is the greatest contract in ILA history. He reports it provides “full protections against automation,” without providing details on the contract terms. The ILA had firmly declared it would not accept automation or semi-automation for any port operations.

In December 2024, then President-elect Donald Trump met with the union leaders. He also issued a strong statement against port automation.

The Associated Press and Bloomberg, however, are reporting that a compromise was found allowing operators to implement technology as long as it does not impact jobs. Mathew Leech, CEO of Ports America, told Bloomberg that automation was separated from other efficiency-enhancing technology. AP reports there is “more leeway to introduce modernizing technology.”

The previous contract required technology proposals to be submitted to a committee that included union representatives for review. Ports such as the Port of New York New Jersey highlighted there was no automation in use at its terminals, a point that operators said was both a handicap and hindering growth and efficiency.

Bloomberg reports the operators also won concessions on issues related to a lack of labor reliability and absenteeism. Daggett in his message to members said that no-shows had to stop and said reliability was critical in their efforts to oppose automation.

The board of the ILA and the members of USMX which represents the terminal operators and shipping companies had previously approved the new contract. The ILA reports there will be a formal signing ceremony on March 11 for the new 6-year agreement.