Union longshoremen and longshore employers announce tentative settlement at East Coast and Gulf ports

An aerial photo shows container ships docked at the Port of Oakland in Oakland, California, on December 9, 2024.

Justin Sullivan | Getty Images

After contentious negotiations, the International Longshoremen's Association (ILA) and the US Maritime Alliance (USMX) announced on Wednesday a tentative agreement on a new six-year framework agreement.

The deadline for an agreement was January 15th.

According to the ILA, full bargaining sessions will be convened to review the agreement, followed by a ratification vote. No date was given for the collective bargaining meeting. Details about when USMX members would vote were not available at press time.

The preliminary agreement exists in all respects for a new framework agreement with a term of six years. The two sides agreed to continue operating under the current treaty until both sides schedule a ratification vote.

“We are pleased to announce that ILA and USMX have reached a preliminary agreement on a new six-year ILA-USMX Framework Agreement, which remains subject to ratification, thereby averting a work stoppage on January 15, 2025,” both sides said in a joint statement statement. “This agreement protects current ILA jobs and creates 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 support ours Keeping supply chains strong.”

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy as the most important node in the global marketplace.”

CNBC was told that details of the new tentative agreement would not be made public to give both ILA base members and USMX members a chance to review and approve the final document.

Sources familiar with the contract told CNBC that the compromise on automation and semi-automation is key to the tentative agreement. The sources said full automation was off the table, but essentially USMX is positioned to implement the technology that its members believe would modernize the ports. The ILA has the guarantee of certain jobs that would be linked to the addition of certain equipment, the sources said.

Technology expansions and workforce were reviewed and negotiated through the union and port technology committee process. The committee consists of co-chairs and five additional members from each side. ILA President Harold Daggett serves on the committee along with his two sons, Dennis and John.

This process will continue with future technology expansions.

In a separate press release, Daggett called President-elect Donald Trump's support “key” to securing the interim deal. Daggett said Trump called USMX officials “to express his support for the ILA” in mid-December on the same day he 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 that both sides were able to find common ground and reach an agreement.

“With 53% of our fashion imported through these gateways, such news is a welcome relief and helps provide reassurance to our industry and the communities and consumers it serves,” Lamar said.