- Over 45,000 U.S. dockworkers from the International Longshoremen’s Association (ILA) approved a new six-year labor contract, securing a 62% wage hike and averting potential disruptions until 2030.
- The deal raises the hourly base rate from $39 to $63, making longshoremen among the highest-paid blue-collar workers in the U.S.
- The agreement safeguards jobs from increased automation.
- The deal prevents further port disruptions, which had previously caused shipping delays and price spikes.
The International Longshoremen’s Association (ILA), representing over 45,000 dockworkers, has ratified a new six-year contract with the United States Maritime Alliance (USMX), ensuring labor stability until 2030.
U.S. Dockworkers Secure Landmark Pay Hike in Six-Year Deal
The agreement, which takes effect from Oct. 1, 2024, to Sept. 30, 2030, includes a 62% wage increase, with the hourly base rate rising from $39 to $63.
The contract also strengthens healthcare and retirement plans while addressing concerns over job security amid automation debates. This deal ends uncertainties after a three-day strike in October 2024, which had disrupted shipping and increased cargo costs.
Why This Deal Matters
Job Security & Benefits: New ILA workers will receive accelerated wage increases, improved healthcare, and higher employer retirement contributions.
Automation Safeguards: The contract prevents excessive automation, a major point of contention.
Economic Impact: The agreement ensures smooth port operations, particularly at high-traffic hubs like New York and New Jersey, which handle over half of U.S. imports.
The vote passed with 99% approval, and the contract will be officially signed on March 11, 2025. ILA President Harold Daggett called it “the richest contract in our history,” estimating its cost to employers at $35 billion.
Global Shipping Stability Amid Challenges
This agreement brings relief to global shippers, who continue to face uncertainty due to Red Sea disruptions and potential new tariffs. It also reaffirms U.S. port stability after years of labor disputes.
The deal has been credited to President Donald Trump, who helped mediate automation concerns, enabling both sides to reach a final agreement in January 2025.
USMX represents major shipping players, including Maersk’s APM Terminals and China’s COSCO Shipping. The contract ensures these employers operate without labor disruptions, maintaining supply chain stability for years to come.
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Source: Reuters
