Union Dockworkers Secure 62% Pay Raise, Employers Gain Limited Automation Rights
After months of tense negotiations and a brief but costly strike, peace has returned to the Eastern Seaboard and Gulf Coast ports. On Tuesday, members of the International Longshoremen’s Association (ILA) overwhelmingly voted to ratify a new six-year master contract with port employers represented by the United States Maritime Alliance (USMX).
In a resounding show of support, nearly 99% of the 24,000 union dockworkers approved the agreement, which covers container handling operations across 14 ports from Boston to Texas. The contract is retroactive to October 1, 2024, and will remain in effect until September 30, 2030.
The new deal delivers a significant win for dockworkers, who will see a 62% wage increase over the life of the contract, along with accelerated raises and improved benefits. In return, employers have secured limited rights to introduce automation in container handling—though only under strict conditions that protect union jobs.
ILA President Harold Daggett, who led the negotiations despite facing death threats during the strike, hailed the contract as “the greatest in ILA history” and possibly the strongest labor agreement ever secured by any union. The contract, valued at approximately $35 billion, was unanimously approved by USMX members in January.
The vote brings an end to a heated dispute over automation that led to a three-day work stoppage in October, halting container and vehicle shipments and dealing a financial blow to the U.S. economy. The strike alone is estimated to have cost the country as much as $2 billion, with nearly $1 billion in losses at the Port of New York and New Jersey alone.
Throughout negotiations, the ILA accused employers—many of them foreign-owned—of prioritizing profits over American jobs. The union also received high-profile political backing. While President Joe Biden refrained from direct intervention, his administration dispatched negotiators who helped broker a temporary contract extension and resume talks. Meanwhile, President-elect Donald Trump met with ILA leadership in December, publicly supporting the union’s stance.
The finalized contract is set to be formally signed on March 11, marking a major milestone in U.S. labor relations. As the dust settles, industry experts predict that this landmark deal will influence upcoming negotiations for dockworkers on the West Coast. The International Longshore and Warehouse Union (ILWU), which represents workers at 29 ports along the Pacific, will likely use this agreement as a benchmark when renegotiating its own contract, set to expire in 2028.
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Sources: Yahoo Finance, The Washington Post
