US Port Strike Ends – ILA and USMX Reach Temporary Deal

ILA and USMX reach agreement to end port strike, resume work (Source: The Hill)

The United States Maritime Association (USMX) and the International Longshoremen’s Association (ILA) are set to return to the negotiating table after reaching a temporary agreement on wages.

Summary:

• The ILA and USMX have reached a temporary agreement on wages, ending the strike at US East Coast and Gulf Coast ports after three days.
• The current labor contract has been extended until January 15, 2025, during which time the union and the employer must resolve outstanding issues.
• East Coast and Gulf Coast ports will resume operations on Friday, October 4.

In a joint statement, the employer and union said: "The International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues.”

"Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume."

ILA members have been on strike since Tuesday, paralyzing East Coast and Gulf Coast ports after the six-year general contract for stevedores expired without agreement on September 30.

Neither side has disclosed details of the interim agreement on wages. The ILA had previously demanded an increase 77% over six years, while USMX raised its offer to “nearly 50%” the day before the strike began.

The two sides now have until January 15, 2025 to reach an agreement on all outstanding issues and sign a new six-year overall contract. Based on previous statements, the biggest outstanding issue is related to automation at the port, which prompted the ILA to walk away from formal negotiations in June of this year and has not returned since.

The ILA has asked for no further automation or semi-automation and job protections for stevedores. For its part, the employer has said it will “retain the current language around automation and semi-automation.”

The union also demands that 100% of the Container Royalty be paid to its members as a wage subsidy and not shared with employers.
Shippers will be relieved that a prolonged strike could severely disrupt an already strained global supply chain. According to HSBC Global research, US East Coast and Gulf Coast ports account for 8% of global container volumes in 2023.

Although the strike only lasted three days, it will take some time for things to return to normal due to the growing number of vessels waiting outside ports and the backlog of exports.

The Port of Virginia said it has resumed full operations and is in the process of restoring terminals in a safe and orderly manner. "We estimate that it will take 24 hours to fully restore operations with many components of the operation being restarted in parallel," the port said.

The Port of New Orleans said its container terminals will reopen on Friday, October 4, with the New Orleans Terminal and Ports America truck gates opening at noon.

“As it takes some time for operations to return to normal, we must be patient and are also reminded once again that our system is resilient and can withstand short and contained impediments. However, we are glad the strike has ended, and AAPA sincerely thanks the USMX and ILA for coming together and negotiating an agreement.”

Source: Phaata.com (via Seatrade-Maritime)

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