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Over 175 Trade Groups Write to White House for Intervention in ILA-USMX Negotiations
The United States Maritime Alliance (USMX) has been in a master contract bargaining with the International Longshoremen's Association (ILA) since May 2024. The current six-year contract is set to expire on Sept. 30, 2024. However, both the parties are yet to reach an agreement for the new contract.
More than 175 trade organizations, including NCBFAA, signed a letter that was sent to President Biden on Tuesday, Sept. 17, urging the US Govt to intervene in expediting the master contract negotiations between the USMX and ILA. If a new contract is not reached before the end of September, the ILA leadership is set to strike container terminals from Maine to Texas, starting Oct. 1, 2024. This will tremendously affect the port operations in the East and Gulf coast. The trade organizations warned in the letter that a strike at this point will have a devastating impact on the economy, especially as inflation is on the downward trend.
With two weeks left until expiration of contract and a threat of a coastwide strike looming, it is necessary that the parties quickly negotiate a new deal or agree to continue negotiations while keeping the ports open and cargo flowing.
According to the letter, if a strike should occur on Oct. 1, the trade organizations asked the Biden administration to “immediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity if a new contract is not reached by the expiration date.”
While we are closely monitoring the situation and will keep you posted on the further developments, we feel that in an election year it is unlikely that a strike with severe ramifications on consumer goods pricing would be allowed to go through by the current administration.