The International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative deal on a new six-year Master Contract.

Both parties agreed to extend the current contract until the union can consult with its full Wage Scale Committee and schedule a ratification vote, while USMX members ratify the finalized terms.

The six-year contract, which expired on September 30 last year, was extended until January 15 after a three-day strike.

"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 parties said in a joint statement.

This tentative agreement, once approved, will avoid a potential work stoppage set for January 15, 2025, according to a report from Reuters.

Both sides have hailed it as a mutually beneficial resolution that will not only help workers but also strengthen the American economy as a global marketplace leader.

"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 federation further remarked that securing a new contract and preventing further disruptions is crucial to ensuring that retail goods reach consumers on time.

Details of the contract will remain undisclosed for now as the ILA and USMX members review and give their nod for the terms of the agreement.

"We are pleased to see the ILA and USMX come to a final agreement on a new contract, as U.S. ports on the East and Gulf Coasts play a critical role in the retail supply chain," said the National Retail Federation in its statement.

In October, a three-day strike by the ILA led to a spike in shipping costs and cargo delays at 36 ports. Longshoremen resumed work after employers agreed to a 62% wage increase over the following six years.

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