Port Strike Tentatively Resolved, with Automation, Job Protection Remaining as Key Issues

As we previously shared, on Oct. 3, the International Longshoremen's Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) announced a tentative agreement to end the three-day strike at East and Gulf Coast ports in the United States. The two sides agreed to extend the previous contract-which ended on Sept. 30, 2024-through Jan. 15, 2025.

The ILA issued a memo to its members, detailing the tentative agreement which secured a 61.5% wage increase over six years. However, critical issues, including job protection and automation remain unresolved.

The contract includes language to allow for some automation but also includes language for job protection. However, Harold Daggett, lead negotiator and ILA president, is demanding "absolute airtight language that there will be no automation or semi automation."

The memo emphasizes the need for ILA members to manage key port facility tasks, to prevent outsourcing to non-union workers or automated systems and to secure strong protections against the introduction of remote-controlled or fully automated equipment. Industry experts anticipate that automation concerns will be a major sticking point in future negotiations.

Port leaders expect recovery from the shutdown to be swift, with minimal disruption due to the relatively short duration of the strike and reduced volumes from front-loading shipments and utilizing West Coast ports.