The parties representing the dockworkers and the port operators reached an agreement Wednesday evening to avoid another port strike.

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced the tentative agreement in a joint statement. The potential resolution comes ahead of a Jan. 15 deadline.

“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on Jan. 15, 2025,” the two sides said in the joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient and creating the capacity they need to keep our supply chains strong.”

As NJBIZ has reported, the two sides reached a stop-gap agreement to end a three-day strike in October. That accord called for a 62% raise for union members and a 90-day extension (until Jan. 15) to work out remaining items – notably, automation at the ports. (See a timeline of events below.)

‘A win-win’

Over the last few weeks, the two sides had traded some barbs over the issue. Last month, President-elect Donald Trump met with ILA President Harold Daggett and his son, ILA Executive Vice President Dennis Daggett, at Mar-a-Lago. Weighing in on the situation, Trump sided with the ILA on automation.

As the deadline approached – and with distance seemingly between the two sides over this particular issue – anxieties amplified about another potential work stoppage. Then the sides reached an agreement Wednesday.

“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace,” the joint statement stated.

The two sides did not release any details of the tentative agreement. This will allow ILA and USMX members to review and approve the final document. However, they did agree to continue operating under the current contract while the union meets with its full Wage Scale Committee and both sides set ratification votes.

Clear support

In a separate statement, Harold Daggett credited the incoming president for his support and meeting. He cited it as the chief reason that ILA was able to win automation protections and negotiate this tentative Master Contract Agreement. ILA represents 85,000 members.

“President Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his statement ‘heard round the world’ backing our position to protect American longshore jobs against the ravages of automated terminals,” said the ILA president. Daggett described Trump as one of the best friends of working men and women in the United States.

“President Trump’s bold stance helped prevent a second coast wide strike at ports from Maine to Texas – that would have occurred on Jan. 15, 2025, if a tentative agreement was not reached,” he said.

The union did not specify the automation protections it won in any statement released Wednesday evening.

Next steps

“This achievement is the culmination of an incredible amount of hard work by our International and your dedicated bargaining committee,” Executive Vice President Dennis Daggett wrote in a message to ILA members. “I ask you all to remain patient and not listen to any rumors as we finalize the details. This is an extensive and complex agreement that requires thorough review to avoid any mistakes in authorship. The next steps include presenting the contract to the Wage Scale Committee, after which the Local Unions will report back to their members before a ratification vote takes place. I urge everyone to trust the process as we move forward together.”

In a post on X, acting U.S. Labor Secretary Julie Su applauded the two sides striking a deal.

“Congratulations to ILA & USMX on a tent. agreement that will give workers security and ensure continued prosperity for our shipping industry,” Su wrote. “This Admin has stood strong with workers and been unwavering in its view that collective bargaining works. Contracts like this are proof.”

“This contract represents all crafts and is designed to benefit every member of the ILA – no matter your role or responsibilities,” the ILA executive vice president added.

Keeping supply chains moving

Following the announcement, New Jersey Business & Industry Association (NJBIA) President and CEO Michele Siekerka released a statement. Siekerka said her organization is thrilled about the two sides reaching this “essential agreement.”

“As it appears to not only be a win-win for the sides involved – but also for the businesses and consumers who would have otherwise been greatly impacted by any work stoppage at our ports,” said Siekerka.

She described the New Jersey ports serve as gateways to the goods that make up our way of life – every day.

“It is critical that our supply chains remain strong and moving,” said Siekerka. “With this agreement set, we can avoid the pandemic-era supply chain backlogs that are only a recent memory – and avert businesses from troublesome shipping delays.”

Stay with NJBIZ for further details on the contract agreement as we learn it, as well as more reaction from leaders and stakeholders in and around the great Garden State.