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Home News Center Industry News ILA submitted the terminal contract to t...
ILA submitted the terminal contract to the rank and file for approval


Rank-and-file members of the International Longshoremen's Association (ILA) will vote Feb. 25 on what union leadership has called "the toughest and most complex contract in the history of the International Longshoremen's Association" with employers at East Coast and Gulf Coast ports.

ILA made the announcement on social media late today after the union's wage committee unanimously approved the new six-year master contract.

If approved by the 25,000 union members in the container handling industry, it would end a period of intense negotiations with terminal operators and ocean shipping companies that began in early 2023 and reached a nakepoint during a three-day strike last October that brought container traffic to a standstill at 14 ports from Massachusetts to Texas.

In a video posted on YouTube, ILA Chairman Harold Daggett called the agreement "an incredible contract" that would conservatively cost employers $35 billion, up from $18 billion in the last contract negotiated in 2018. He provided some details:

- Wages have risen 62 percent in six years, compared with an average of only 2 percent a year over the past 24 years
- Job security in connection with the introduction of semi-automated equipment at the waterfront
- Accelerate wage increases for new hires to help build the workforce
- Full payment or royalty for each container handled is returned to ILA
- Increase pension plan contributions
- Strengthening federal health care programs
- Resolve the issue of leave

Daggett said in the video that the union would "address and address" absenteeism and warned that members who accepted work orders but didn't show up could "jeopardize" the value of new contracts and hurt the ILA's goal of moving beyond automation.

"This has to stop!" Dagit said, raising his voice.

Unions had fiercely opposed the introduction of automation, accusing foreign shipping companies of trying to cut jobs while making billions of dollars in profits. USMX said its ports are badly in need of container handling, which lags behind global competitors in efficiency and will hinder further growth.

Union members will receive details of the agreement at a local meeting over the next two weeks before participating in a ratification vote on Feb. 25.

In the video, Harold Daggett's son, Executive Vice President Dennis, said the parties had agreed that no new technology would be implemented without early detailed discussions and negotiations on the ground, a 30-day demonstration period and mutual consent, and that there would be no reduction in personnel or working hours as a result of implementation. The new Technology Committee will oversee the local process. If no agreement can be reached, the issue will be referred to binding arbitration. All technology agreements are port/terminal specific, meaning that technology introduced at a port terminal must go through a separate process before it can be used at another facility in the same port.

International unions can also request an audit of any technology that has completed the implementation process. A breach of the master contract may result in the employer paying $10,000 per day into the Container Usage Fee Fund.

The new contract also prohibits automation, artificial intelligence and quantum computing from performing clerical functions.

For benefitting shippers, the new agreement protects ILA's jurisdiction to maintain and repair the chassis, even if the carrier sells or transfers the chassis to an entity outside the agreement.

The terms of the contract stipulate that each rail or wheeled gantry crane is equipped with at least one ILA worker and can be operated remotely if the worker supervises the entire handling process. Remote control of shore cranes is prohibited.

Representatives of the pay Scale Board, which represents the ILA local union from Maine to Texas, gathered Friday in Hollywood, Fla., where the Daggerts walked them through contract details. Delegates also heard from Paul DeMaria, Chief operating officer and lead negotiator for employers of the United States Maritime Union (USMX).

"I believe our work here today will move us toward a ratification vote... At that time, ILA rank-and-file members will vote on what I believe is the greatest contract for ILA and the greatest contract ever negotiated by an organized labor organization, "said Harold Daggett, the union's chief negotiator. "Our collective strength has helped us reach the richest agreement in our history."

The elder Daggett praised the "courageous actions" of DeMaria and President Donald Trump, who supported the union after meeting with the Daggetts at Mar-a-Lago in December and helped the two sides reach a tentative contract.

A representative for USMX said the employers' group had no comment.

The new agreement is retroactive to October 1, 2024 and, if ratified by ILA members, will remain in effect until September 30, 2030.

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