The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) announced the tentative agreement in a joint news release at night on Wednesday, Jan. 8. The deal aimed to avoid another potential strike on Wednesday, Jan. 15.
The ILA and USMX agreed to extend the current master contract until ILA representatives can convene for a ratification vote and USMX members can finalize the terms.
"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 creating the capacity they need to keep our supply chains strong," the groups said. "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."
In a statement, Acting U.S. Labor Secretary Julie Su said the deal will provide security for workers and continued economic success for the country's shipping industry.
"This administration has stood strong with workers every day and been unwavering in its view that when workers have a say and unions are strong, everybody wins – and contracts like this are proof," said Acting Secretary Su. "The parties sat together, tackled difficult issues, and in doing so have protected workers’ progress and ensured continued benefits for years to come."
The agreement follows months of tense negotiations that threatened to disrupt national supply chains. The strike stood to cost billions and potentially leave thousands of dockworkers unemployed.
Dockworkers went on a three-day strike in October 2024, creating picket lines at ports from Maine to Texas. The ILA wanted a ban on automated or semi-automated terminals, along with a $5 hourly wage increase.
A lengthy strike threatened to cost the U.S. billions of dollars and some shoppers rushed to panic buy essential items. However, the sides agreed to extend the master contract, ending the threat of another strike until mid-January 2025.
Details on the newest tentative deal won't be released until ILA and USMX members give final approvals.
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