A container ship docks at the Port of Oakland in Oakland, California, from an aerial view on December 9, 2024.
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After a period of contentious negotiations, the International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX) announced on Wednesday a tentative agreement on a new six-year master contract.
The deadline for reaching an agreement is January 15.
According to the ILA, a full payroll meeting will be held to review the agreement, followed by a ratification vote. No date was given for the full payroll meeting. Details on when USMX members will vote were unclear at press time.
The provisional agreement covers all projects of the new six-year main contract. The parties agree to continue operating under the current contract until a ratification vote is scheduled between the parties.
“We are pleased to announce that ILA and USMX have reached a preliminary agreement on a new six-year ILA-USMX master contract, pending approval, to avoid any work stoppage on January 15, 2025,” the parties said in a joint statement. “statement. “This agreement protects current ILA jobs and establishes a framework to implement technologies that will create additional jobs while modernizing Eastern and Gulf Coast ports, making them safer and more efficient, and creating The capabilities needed to keep our supply chains strong.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and maintains the U.S. economy as a critical hub for global markets.”
CNBC has learned that details of the new tentative agreement will not be released to allow ILA rank-and-file and USMX members to review and approve the final document.
Sources familiar with the contract told CNBC that compromises on automation and semi-automation are key to the tentative agreement. Sources revealed that complete automation is not possible, but essentially the USMX has the ability to implement technologies that its members believe can modernize the port. Sources said the ILA could guarantee specific work related to the specific equipment being added.
Increased technology and increased labor force review and negotiate Technical committee process used by alliances and ports. The committee consists of a co-chair and five additional members from each party. ILA President Harold Daggett and his two sons, Dennis and John, are members of the committee.
This process will continue with future technical additions.
