In an aerial view, container ships sit docked at the Port of Oakland on December 09, 2024 in Oakland, California.
- The tentative agreement is on all items for a new six-year master contract.
- The two sides agreed to continue to operate under the current contract until both sides schedule a ratification vote.
- CNBC was told details of the new tentative agreement would not be released to allow both the ILA rank-and-file-members and USMX members to review and approve the final document.
After a contentious negotiation, the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) on Wednesday announced a tentative deal on a new six-year master contract.
The deadline to reach an agreement was Jan. 15.
According to the ILA, full wage scale meetings will be called to review the deal followed by a ratification vote. No date was given on the full wage scale meeting. Details on when the USMX membership would vote were not available at press time.
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The tentative agreement is on all items for a new six-year master contract. The two sides agreed to continue to operate under the current contract until both sides schedule a ratification vote.
"We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025," the two sides said in a joint statement. "This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.
"This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace."
Money Report
CNBC was told details of the new tentative agreement would not be released to allow both the ILA rank-and-file-members and USMX members to review and approve the final document.
Sources familiar with the contract told CNBC the compromise on automation and semi-automation was key to the tentative agreement. According to the sources, full automation was off the table but essentially USMX has the ability to implement the technology its members feel would modernize the ports. The ILA has the guarantee of specific jobs that would be associated to specific equipment being added, the sources said.
Technology additions and labor have been reviewed and negotiated by the technology committee process used by the union and ports. The committee consists of co-chairmen and five additional members from each side. ILA President Harold Daggett, along with his two sons, Dennis and John, are on the committee.
This process will continue in future technology additions.
In a separate release, Daggett credited President-elect Donald Trump's support as "key" to securing the tentative contract. Daggett said Trump had called USMX officials in mid-December "to express his support for the ILA" on the same day he had met with the president-elect. He called Trump a "hero."
Stephen Lamar, CEO of the American Apparel and Footwear Association, said the association was grateful both sides were able to find common ground and reach a deal.
"With 53% of our fashion imported through these gateways, such news is a welcome relief and helps provide certainty to our industry and the communities and consumers they serve," Lamar said.
National Retail Federation vice president of supply chain and customs policy Jonathan Gold said a new contract and avoidance of port shutdowns "is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation's supply chain."
