Automotive Supply Chain Avoids Disruption With Tentative Strike Agreement

A tentative agreement has been reached between the International Longshoremen’s Association and the United States Maritime Alliance, putting a potential strike off until next year, according to an Auto Care Association press release.

Wage increases of 62% over the span of a six-year contract were agreed upon—a compromise between ILA’s push for 77% wage increases, and USMX’s initial offer of a nearly 50% raise.

Other issues, such as automation and benefits, are still being discussed, and the groups will have until Jan. 15, 2025 to reach an agreement on these aspects to avoid another strike. 

All work covered under the Master Contract will resume as backlogs accrued during the strike are addressed.

The ports operated by ILA dockworkers are responsible for a significant portion of the auto care industry’s imports and exports, with ACA having estimated up to nearly $340 million in losses for aftermarket businesses for each day the strike continued.

“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues,” ILA and USMX said in a joint statement. “Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume.”