Client Advisory: ILA Contract Expiration – September 3

Client Advisory: ILA Contract Expiration - September 3

WHAT'S THE LATEST

The International Longshoremen's Association's (ILA) current labor contract covering union members across the US East Coast and Gulf Ports, expires on September 30.

As of Friday, August 30, ILA announced preparations for a potential coast-wide strike on October 1 if a new agreement with the United States Maritime Alliance (USMX) is not reached.

WHAT WE KNOW

• As of 8/30, the ILA filed the required notifications with government agencies and negotiating parties regarding the possibility of a strike if no new agreement is reached.
  • Due to a 'no strike' clause in effect until the current contract's expiration, no labor action is expected before October 1.
• The filing of these notifications does not necessarily indicate that a strike will occur.
  • Despite a history of successful negotiations, a strike affecting all the main ports along the US East and Gulf coasts remains a possibility without a settled contract.
• On Wednesday and Thursday this week, the ILA will hold 'wage scale meetings' in New Jersey for the union's wage scale delegates to review master contract demands.

WHAT'S NEXT?

As your logistics partner, we are ready and able to pivot quickly. Our team is monitoring the situation closely, hoping the negotiations between all parties will be resolved before the expiration of the current contract. In the event of labor disruptions, we're prepared to implement contingency plans to ensure continuity of our export and import services where an alternative routing is possible.

We will frequently communicate and advise on the situation as more details become available.

If you have questions, please reach out to your SEKO representative, or email us at [email protected].

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