Source: Strikernia/shutterstock
Workers at US east coast and Gulf coast ports have “overwhelmingly” voted to ratify a new six-year master contract agreement between the union International Longshoremen’s Association (ILA) and terminal operator group US Maritime Alliance (USMX).
The deal averts any further strike action that could have caused supply chain chaos, potentially resulting in a rise in air cargo demand as an alternative to shipping.
The ILA and USMX will formally sign this new six-year agreement on 11 March.
“I am pleased to announce that thousands of ILA longshore workers covered by this master contract today have overwhelmingly supported its ratification with nearly 99% in favour, and we now have labour peace for the next six years,” said ILA president Harold Daggett who served as the union’s chief negotiator.
In October, port workers launched three days of strike action when the previous contract came to an end. After the three days of industrial action, a temporary agreement was reached that ran until mid-January.
At that point, the two parties announced they had reached a tentative agreement which has now been ratified.
The logjams created by the three days of strike action that occurred in October were thought to have taken a few weeks to clear.
It is estimated that for every day a port is closed, it will take around five days for supply chains to return to normal.
