Article by: Rick Walker, Vice President, TradeInsights, LCB/CCS

The International Longshoremen’s Association (ILA) and the maritime employers represented by the United States Maritime Alliance (USMX) have reached a tentative deal to reopen container terminals at East and Gulf Coast ports after trading new wage offers that would bring dockworker pay up over 60%. Longshore workers will work under a three-month contract extension while a formal deal is negotiated. Ports are expected to reopen Friday. The offer represents a 62% increase in top wages for longshore workers. The new deal, which sources close to the talks said came together quickly, provides a pay raise of 61%, or $4 per hour over each of the six years of the pact, and extends the master contract to Jan. 15, 2025, to allow the sides to negotiate outstanding issues such as automation. A final agreement would still have to be ratified by union members.

“I want to applaud the International Longshoremen’s Association and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports,” Biden said in a statement released by the White House. “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract. I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic. And I applaud the port operators and carriers who are members of the U.S. Maritime Alliance for working hard and putting a strong offer on the table. “I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding. Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”

We will continue to monitor the progress of the negotiations and provide updates as needed.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.