The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement on a six-year contract, avoiding a potential labor disruption that could have impacted East and Gulf coast port operations.
The two organizations announced the agreement in a joint statement. The new contract must be ratified by both parties, but the tentative contract averts the work stoppages that would have begun Jan. 15, when the previous contract extension expired.
The deal addresses key issues, including job protection for ILA workers and the integration of modern technologies aimed at enhancing safety, efficiency and capacity at ports along the East and Gulf coasts. Details were not released to allow ILA and USMX members to review and approve the final document.
According to the statement, “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports -- making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.”
The contract is also seen as a broader economic win. “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 organizations noted.
The first strike began Oct. 1, 2024, halting work for 50,000 members and stalling operations at 14 major ports along the East Coast and Gulf of Mexico. The strike came as regional hubs grappled with the aftermath of Hurricane Helene and prepared for Hurricane Milton.
Fortunately for the automotive parts industry, the strike ended after three days, as the ILA and USMX agreed to extend negotiations until Jan. 15 and continue working under the previous agreement. The agreement helped prevent further parts supply chain disruptions, keeping prices stable despite the turbulence.
In an interview with Autobody News, days after the strike ended, Greg Horn, chief industry relations officer for PartsTrader, said the automotive parts industry had "dodged a bullet here."
European manufacturers ship vehicle parts to the East Coast, and a prolonged strike could have impacted parts availability across the segment, raising prices for repair shops and customers. The automotive parts industry had already been dealing with inflationary pressures for years due to supply chain disruptions, severe weather patterns and the workforce's return after COVID-19 shutdowns.
“The timing for the strike couldn’t have happened at a worse time [for automotive parts]. Right when there were ships bound for the East Coast, the storm was shutting down ports proactively,” said Horn. “It could have been a very devastating strike for the U.S. economy in general.”
