The end of February saw the International Longshoreman’s Association (ILA), the representative body for labour in 35 ports that run from Maine to Florida and along the Gulf Coast, ratify a new 6-year contact that spans from October 2024 to 2030. It is a deal that Harold Dagget, President, ILA, describes as “the greatest contract in ILA history” and one that is a “gold standard” for dockworker unions globally.
It is certainly an achievement for the ILA with the union highlighting that it delivers a 62% wage increase, accelerated wage increases for new ILA members, container royalty funds for the ILA and other benefits for members including health care. Dagget suggests the new contract is worth about US$35 billion, nearly twice the amount of the previous agreement. Significantly, Dagget also suggests that the contract “provides full protections against automation” – a thorny issue in what were undoubtedly very hard-fought negotiations.
At the outset of negotiations, the ILA firmly took the stance that it would not accept automation or semi-automation. Dagget did not release full details of the new agreement with respect to automation but sources on the employer side seem to suggest some ground has been given up in this area. One report suggests that the union will accept automation where it does not impact jobs.
Looked at from an international perspective, however, this places the US ports sector some way behind their peers on other continents - Europe, Asia and even Australia where the MUA is also renowned for adopting a tough position in labour negotiations. It is particularly striking when you compare the USA’S position to that of China. As the article on pxx highlights, China is fully committed to marching down the automation road with approaching 50 facilities either operating on an automated basis or under development to do so. It will be interesting a decade on compare performance levels against key metrics such as vessel access to berth and turnaround time. I think we know who will win as regards labour cost!
