Retailers hail tentative agreement on port contract

The International Longshoremen's Association (ILA) and U.S. Maritime Alliance Ltd. (USMX) have reached a tentative agreement on a six-year master contract, the organizations announced earlier this week.

The current USMX-ILA contract expires Sept. 30. The new agreement is subject to ratification by members of both groups.

"We have reached a tentative agreement ... that is beneficial to both sides," said ILA President Harold Daggett and USMX Chairman David Adam in a joint press release.

National Retail Federation (NRF) officials welcomed the groups' announcement.

"This agreement is very important for retailers who are now in the process of bringing in their holiday season merchandise and were worried that the current contract could have expired right in the middle of that season," said Jonathan Gold, NRF's vice president for supply chain and customs policy. "This ensures that we will have stability at East Coast and Gulf Coast ports over the next six years."

NRF led more than 100 organizations in a March letter to the union and management urging both parties to resume talks after negotiations broke down earlier this year.

Details of the agreement weren't made public. ILA and USMX have until July 10 to finalize their local agreements prior to the ratification votes.

USMX represents employers of the East and Gulf Coast longshore industry. ILA is part of the AFL-CIO, CLC.