Strikes averted! Both parties reached an agreement!
Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~
Recently, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a preliminary agreement on a new six-year main contract.
Compared with the deadlock before October 1, when the strike was decided early and collapsed without negotiation, the two sides are obviously more cautious and sincere this time.
As the threat of a potential strike loomed on January 15, the two sides decisively resumed negotiations on January 7 and held a carefully prepared preparatory meeting the day before, January 6. These efforts undoubtedly laid a solid foundation for the final agreement.
The parties agreed to continue the existing contract until the union is able to meet with its full Wage Standards Committee and schedule a vote to ratify the contract, and until USMX members approve the final contract terms.
Strikes at terminals along the U.S. East Coast and along the Mexican coast have been averted thanks to a tentative agreement.
"We are pleased to announce that ILA and USMX have reached a preliminary agreement, subject to approval, on a new six-year ILA-USMX prime contract, thus avoiding any disruption to work on January 15, 2025," the parties said in a joint statement express.
“This agreement protects existing ILA jobs and establishes a framework to advance technology implementation that will not only create more jobs, but also modernize East Coast and Gulf Coast ports – making them safer , efficient, and have the ability to keep the supply chain strong.”
“This is a win-win agreement that not only creates ILA jobs but also supports American consumers and businesses while allowing the U.S. economy to continue to be a critical hub for global markets.”
Details of the new preliminary agreement will not be made public to allow ILA At-Large and USMX Members to review and approve the final document.
A compromise between automation and semi-automation was key to the initial agreement, according to sources familiar with the contract. Full automation has been ruled out, sources said, but the USMX is largely capable of implementing technologies its members believe can modernize the port.
At the same time, ILA was guaranteed specific positions associated with the addition of specific equipment. The addition of technology and labor issues have been reviewed and negotiated through a technical committee process used by unions and the port.
The committee is composed of two co-chairs and five additional members from each side, including ILA Chairman Harold Daggett and his two sons, Dennis and John. Future technology additions will continue to be considered through this process.
Thanks to a tentative agreement, a strike at docks along the U.S. East Coast and along the Mexican coast has been averted, so additional costs that would otherwise have been incurred due to work interruptions, such as so-called "work interruption fees" and strike-related additional costs, will not be covered. Charge extra.
This not only saves cargo owners possible additional operating costs, but also avoids logistics delays and supply chain disruptions caused by the suspension of port operations.
