Both parties have consented to maintain operations under the existing contract while the ILA arranges for its complete Wage Scale Committee to convene and organise a vote for ratification.
Concurrently, USMX members will also review and vote on the final contract terms.
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The specifics of the recently reached provisional agreement are being withheld from public disclosure to ensure that ILA members and USMX affiliates have the opportunity to assess and confirm the details of the proposed contract.
A joint statement by ILA and USMX reads: “We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025. This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – 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.”
The AAFA’s president and CEO Steve Lamar tells Just Style exclusively: “It’s great to see ILA and USMX come together to reach a tentative agreement that should avert a damaging East and Gulf Coast port strike”.
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By GlobalDataHe adds: “It is so important that they could find common ground on complex issues regarding labour and automation to keep US imports and exports flowing during a critical time for our supply chains, American workers, and the US economy.”
Lamar points out that with 53% of fashion imported through these gateways, such news is a “welcome relief and helps provide much-needed certainty” after his organisation issued a plea to the ILA to reconvene at the negotiation table and solidify a contract with the USMX last month.
The AAFA looks forward to a quick ratification of the new six-year contract that will strengthen ports and support US workers, the communities where they live, and the consumers they serve.
The retail sector has also expressed its approval for the interim agreement. It comes closely after trade associations, including the Retail Industry Leaders Association (RILA) and Shippers Coalition urged the two parties involved to finalise a contractual agreement prior to the expiration of the current workers’ contracts on 15 January 2025.
“US 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 US economy can push forward on the right track for growth. ILA and USMX reaching consensus on this tentative agreement is a welcome relief for all industries that rely on these ports. We urge a quick ratification of the agreement to eliminate the element of uncertainty that has long lingered over supply chains and the US economy,” RILA said.
The ILA-USMX dispute
The dispute’s origins trace back to October 2024 when dockworkers initiated a three-day strike over wage issues and automation concerns.
Contract negotiations involved 45,000 dockworkers on the US East and Gulf Coasts have been ongoing. Earlier, the two parties reached an agreement for a 62% pay increase following the October strike, which was dependent on finalising a new contract.
The ILA has been vocal about reversing labour contract concessions related to automation, particularly targeting semi-automated cranes that they argue jeopardise jobs.
Conversely, USMX maintains that the rail-mounted gantry cranes are indispensable for competitive parity with international ports increasingly adopting automation.
The October strike led to escalated shipping costs and considerable cargo delays across 36 affected ports, according to a report by global news publication Reuters..
