Although it took a little longer than originally expected, securing an agreement between longshoremen labor and waterfront employers satisfied the interests of both parties.
On March 11th, 2025, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) formally agreed to a new six-year Master Contract. This agreement was reached after a tentative agreement on January 8th, 2025, and following ratification by 24,000 plus ILA rank and file members working at Atlantic and Gulf ports on February 25th, 2025. Under the terms the new agreement will retroactively take effect on October 1, 2024, and remain in place through September 30, 2030.
A Master Contract
What was somewhat overlooked in the reporting on the negotiations is the two parts involved in the waterfront labor and management agreement. The “Master Contract”, the one ratified in February applies to the entire workforce. But there are also “Local” contracts that apply to the waterfront labor at specific ports and these contracts are negotiated usually after terms of the Master Contract have been inked.
Strong said in describing the overall negotiations “I was involved in the Master Contract negotiations. USMX represented our side — the employers and the Port Associations and the [ocean] carriers. We advocated strongly for certain things.… and it was contentious at times. But that’s the nature of the business. And I think everybody walked away satisfied ... Overall, it was a good contract. Everybody got something they were looking for, not everything, as it goes in labor negotiations, so it was good.”
Strong added that “The key things were the wage deal, which was a very good wage deal for the ILA [62% wage increase over the life of the contract with higher entry pay]. And we [USMX] made some tweaks to the technology language that everybody could work with in so as far as the implementation of semi-automated equipment at terminals. And overall, the result was good.”
“I think the relationship is good. And I think a lot of credit has to go to Paul DeMaria, [Executive VP and COO], and Anissa Frucci, [Executive VP Finance and Administration] from USMX. That whole USMX team really stepped up. Didn’t have a strike for…over 50-years. It’s basically been [labor] peace [no long-term strikes] and they [the ILA strike was October 1-3, 2024] went out in October for three days. That [strike] came to a … quick end with an agreement to extend the contract for another 90-days, and we [then] reached a deal.”
Going Local — Crafting a Local Contract
Unlike the Master Contract, the Local Contracts are tailored to the port conditions. “Essentially, anything that’s not covered in the master contract we have local discretion to negotiate on those things,” Strong said.
The local contract takes into consideration local conditions and practices that are “unique”: to that port.
As Strong explained, “The local [contract] involves addressing items such as local past practices, work rules, manning levels, non-Master contract rates of pay, job classification training and differentials, and vacation pay eligibility.”
“In some situations, the Master Contract provides a baseline to work from... For example, - the Master Contract requires local port associations and local ILA representatives to have mutually agreed upon a drug and alcohol abuse program and that program must include the Master Contract standards for such programs. The Master Contract sets the baseline requirements, but then we can locally negotiate additional standards as long as the local standards do not conflict with the Master Contract. We have a robust and effective drug and alcohol abuse testing policy here in Boston. Workforce safety is a priority for the BSA and its members and the Local ILA leadership.”
Strong added, “Other things discussed in bargaining, are items such as the grievance procedure, or what are the paid holidays and what holidays are considered legal holidays and if the container facility is open what will be the rate of pay for those who are required to work.
The negotiations on the local contract were a little unusual in that they preceded that of the Master Contract and thus the actual base wage scale was an unknown during local negotiations. “This year it was different, or I should say, this round of negotiations was different, in that the International and USMX wanted to see local agreements reached first. Historically, the terms of the master contract were agreed upon and then local negotiations would commence knowing basically what the wages were going to be. This time, we did not,” Strong said of the unusual situation. But Strong added, “To me, I don’t have a strong preference either way. I must negotiate no matter what, and I’ll adapt as needed. We’ll adapt, …. on what needs to get done. The BSA and ILA have had good relations for the most part. My predecessor at the BSA, Richard Meyer, laid that foundation of respect and trust with the ILA. The BSA and its employer members have worked hard to maintain that foundation with the ILA. We certainly have had our battles but there is mutual respect and trust. Respect and trust are the key elements to resolving issues and getting contracts settled. I’m confident, given the relationship that we have with the local business agents here in Boston, that we’ll get future deals done, whichever way it is – locals deals first or Master first. And we’ve traditionally settled contracts with our ILA Locals. It’s the BSA’s responsibility to ensure that we continue that tradition and hopefully both sides maintain respect and trust for each other.”
