USMX and ILA Reach Tentative Labor Agreement to Avoid Port Disruptions

Federal Mediation and Conciliation Service Director George H. Cohen issued the following statement on the labor negotiations between the United States Maritime Alliance and the International Longshoremen's Association:

"I am extremely pleased to announce that the parties have reached a tentative agreement for a comprehensive successor Master Agreement.  The tentative agreement is subject to the ratification procedures of both parties and, as well, to agreements being achieved in a number of local union negotiations.  Those local negotiations are ongoing and will continue without interruption to any port operation.  Out of respect for the parties' ratification processes, and consistent with the Agency's long-standing confidentiality policy, we will not disclose any details concerning the substantive provisions that have been reached."

"However, as the negotiations have been conducted under the auspices of the FMCS, commencing last September and continuing to date, I can report that the tentative agreement reflects the culmination of good faith negotiations in which the parties successfully accommodated strongly held competing positions because of their commitment to problem solving.  Again, collective bargaining has proven its worth by avoiding a potential work stoppage that would have had a severe negative impact on the nation's economy."

"On behalf of the FMCS, I want to especially convey my thanks to ILA President Harold Daggett and USMX Chairman and CEO James Capo for their leadership, patience, and persistence and to their respective hard-working negotiating committees.  Finally, my colleagues Deputy Director Scot Beckenbaugh, Director of Mediation Services Jack Sweeney, and Commissioner Pete Donatello provided valuable assistance both to me and the parties throughout this lengthy process."

The National Retail Federation, the world’s largest retail trade association, also issued a statement from President and CEO Matthew Shay on the tentative contract agreement between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX), which covers dockworkers along 14 East and Gulf Coast containers ports:

“The retail industry, which supports one in every four U.S. jobs, is pleased to hear that the ILA and USMX have reached a tentative, long-term master contract. We urge the parties to quickly complete any outstanding negotiations, including local negotiations at each of the individual 14 ports, and quickly ratify the new labor agreement. 

“If the tentative agreement holds, the new labor contract will bring much-needed certainty and predictability to the supply chain for retailers, manufacturers, farmers and other industries that rely on the ports to move the nation’s commerce and trade. The new port labor contract, which covers container operations the each of the 14 East and Gulf Coast ports, from Maine to Texas, will help make these major ports more competitive and efficient.

“Throughout the process, NRF has stressed the vital economic importance of keeping the ports open to international trade and commerce. Our ports and the cargo that flows through them, be it automobiles or ottomans, are truly our economic lifeline to the world.

“We appreciate the leadership and outstanding public service of the Federal Mediation and Conciliation Service for their steadfast work with both sides – through thick and thin – since last September. Again, we are grateful for this announcement and reiterate our request that both sides move quickly to ratify the final master contract.”