US dockworkers approve six-year contract, securing major pay hikes

Robert Besser
02 Mar 2025, 23:12 GMT+10

More than 45,000 U.S. dockworkers have approved a new six-year contract, securing higher wages and preventing any disruptions until 2030
The agreement, made between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), includes a 62 percent wage increase over the contract’s duration
The deal was reached after both sides had initially agreed on wages in October, ending a three-day strike that caused shipping delays and price hikes

NORTH BERGEN, New Jersey: More than 45,000 U.S. dockworkers have approved a new six-year contract, securing higher wages and preventing any disruptions until 2030.

The agreement, made between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), includes a 62 percent wage increase over the contract's duration.

The deal was reached after both sides had initially agreed on wages in October, ending a three-day strike that caused shipping delays and price hikes. However, disagreements over automation delayed a final agreement until January. The White House also played a role in pushing for a resolution.

Back-dated to October 1, 2024, the contract will raise the hourly base wage from US$39 to $63, making longshoremen among the highest-paid blue-collar workers in the U.S. It also speeds up wage increases for new workers, improves healthcare benefits, and increases employer contributions to retirement plans while protecting jobs from automation.

The contract was approved by 99 percent of workers, and the final signing is set for March 11. ILA President Harold Daggett called it the "richest contract" in the union's history, estimating it will cost employers $35 billion.

The agreement relieves shipping companies already facing global challenges, such as disruptions in the Red Sea and potential new tariffs. The affected ports, including New York and New Jersey, handle more than half of U.S. imports. Major companies like Maersk's APM Terminals and COSCO Shipping are among the employers covered by the deal.