In aerial view, container ships are docked at the Port of Oakland in Oakland, California on December 09, 2024.
Justin Sullivan | getty images
After a contentious negotiation, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) on Wednesday announced a tentative deal on a new six-year master contract.
The deadline to reach agreement was January 15.
According to the ILA, full scale meetings will be called to review the agreement and then a ratification vote will be held. No date was given for the full pay scale meeting. Details on when the USMX membership will vote were not available at press time.
There is a temporary agreement on all items for the new six-year master contract. Both parties agreed to continue operating under the current contract until both parties can schedule a ratification vote.
The two parties said in a joint statement, “We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Agreement, subject to ratification, thus Any work disruption will be deferred until January 15, 2025.” 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 our supply chains. Will build the capacity needed to keep it strong.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the U.S. economy at the center of the global market.”
CNBC was told that details of the new tentative agreement will not be released to allow both ILA rank-and-file members and USMX members to review and approve the final document.
Sources familiar with the contract told CNBC that compromise on automation and semi-automation was key to the temporary agreement. According to sources, full automation was out of the plan, but essentially USMX has the ability to implement technology that members feel will modernize the ports. Sources said ILA has a guarantee of specific jobs that will be linked to the specific equipment to be added.
Technology additions and labor have been reviewed and negotiated By the Technology Committee process used by the Union and the Ports. The committee consists of the co-chair and five additional members from each party. Harold Daggett, president of the ILA, is on the committee along with his two sons, Dennis and John.
This process will continue with future technology additions.
