Tentative labor deal struck to avoid strike at East Coast, Gulf Coast ports
A potential strike that would have shut down ports along the East and Gulf coasts and dealt a serious blow to the retail supply chain has been averted.
A tentative new labor deal has been reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The six-year contract expired on Sept. 30 last year and, following a three-day strike, was extended until Jan. 15.
In a joint statement, the two parties said the agreement protects union jobs and allows ports on the East and Gulf coasts to modernize with new technology, ”making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.”
“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,” according to the statement.
The nation’s retail groups welcomed the agreement.
“We are pleased to see the ILA and USMX come to a final agreement on a new contract, as U.S. ports on the East and Gulf Coasts play a critical role in the retail supply chain,” said Jonathan Gold, VP of supply chain and customs policy, National Retail Federation. “Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain.”
The Retail Industry Leaders Association also applauded the deal.
“ILA and USMX reaching consensus on this tentative agreement is a welcome relief for all industries that rely on these ports,” the group stated. “We urge a quick ratification of the agreement to eliminate the element of uncertainty that has long lingered over supply chains and the U.S. economy.”
“U.S. East and Gulf Coast ports are crucial links in the retail supply chain. Operating at full capacity and without the stress of potential disruption looming, retailers can continue delivering for consumers without delay or added costs, and the U.S. economy can push forward on the right track for growth."
