It’s a done deal.

Rank-and-file members of the International Longshoremen’s Association’s union (ILA) overwhelmingly ratified a new six-year master contract that applies to unionized dockworkers who labor at 14 pivotal ports along the East and Gulf Coasts.

Terminals at the Port of New York and New Jersey

Union leaders and port employers had agreed to the deal in January, but the rank-and-file dockworkers still needed to approve the contract to officially set it in place. On Feb. 25, a reported 99% or so of ILA members voted to ratify the agreement, whose terms include a 62% wage increase over the course of the contract, which runs until Sept. 30, 2030.

The ratified agreement ends the threat of what could have been a supply chain-debilitating, economy-damaging strike at East and Gulf Coast ports.

“We now have labor peace for the next six years,” said ILA President Harold Daggett, who served as the union’s chief negotiator.

That should come as music to the ears of professionals in the promotional products industry. Promo imports the vast majority of products it sells in North America from overseas, and functioning ports are essential to that inflow of goods.

Contract talks were highly contentious, with battles over wages and automation at ports figuring prominently in the fray. In October, after the previous contract expired on Sept. 30, ILA took to the picket lines for three days, a strike that reportedly cost the United States economy as much as $2 billion, while also leading to port backups that lasted weeks.

Fortunately, promo importers said the short-lived strike didn’t significantly impact their sourcing or supply chain operations, as they were able to continue to get items stateside and stocked without profound interruption. A prolonged strike could have led to importing delays and higher importing/shipping costs, which well may have fueled inventory shortages and higher pricing on products.

In addition to the overall pay increase, the contract accelerates wage raises for new ILA workers, returns full container royalty funds to the ILA and strengthens the workers’ healthcare plan, the union said. It also allows for the introduction of automation equipment in container handling in exchange for guarantees that protect union jobs. The contract is retroactive to Oct. 1, 2024.

$2 billion
What the three-day ILA strike in October reportedly cost the U.S. economy.(Freight Waves)

While former President Joe Biden didn’t formally intervene in the talks, he did send negotiators last year to help end the strike and to extend the former contract so more talks could occur. Daggett credited President Donald Trump’s stated support for the union with playing an important role in seeing the deal done.

Leaders for ILA and the U.S. Maritime Alliance (USMX), which represents port employers, will formally sign the deal on March 11. USMX’s members include titans in the ocean transport industry like Maersk.

The next big port worker contract negotiation in the U.S. will come in a few years and involve West Coast dockworkers that belong to the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association, an employer group. The contract for ILWU expires July 1, 2028. Analysts think that what was characterized as the strong contract that East/Gulf Coast dockworkers just ratified will influence ILWU demands and expectations in those negotiations.

While the ending of the potential for an East/Gulf Coast port strike is positive news for promo, there’s no shortage of other supply chain issues to keep an eye on, as Trump’s administration continues to implement or consider instituting hefty tariffs and port call fees.