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AAFA calls on ILA and USMX to resume negotiations

Nov 26, 2024 United States

The trade body is calling on the ILA and the USMX to negotiate to avoid a strike that would further disrupt the East and Gulf Coast ports in an already challenging global supply chain environment

The American Apparel & Footwear Association (AAFA) is calling on the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) to continue negotiations on their master contract, which expires on the 15^thof January. The ILA, which represents the dockworkers, is threatening to go on strike unless a fair collective agreement is reached.

According to the association, a strike could significantly disrupt the functioning of the East and Gulf Coast ports and increase inflation. “Supply chain disruptions are a serious concern for our industry, and we cannot afford additional setbacks as we approach critical shipping periods like the Lunar New Year”, said AAFA president and CEO Steve Lamar.

“We urge both the ILA and USMX to continue their negotiations and reach a fair, sustainable agreement before the expiration of the Master Contract. A strike or prolonged labour action would hurt American businesses, workers, and consumers, further complicating an already challenging global supply chain environment and a period of high inflation”.

AAFA recalled that the apparel and footwear industry has been further burdened by the diversion of ships around the Cape of Good Hope in South Africa over the past year due to the ongoing attacks on commercial shipping in the Red Sea. These delays, combined with rising shipping costs and inflation, have put additional pressure on US ports, including those on the East and Gulf coasts.

In a separate letter to President Joe Biden, the organisation urged the US government to step up its efforts to protect international shipping lanes in the Red Sea from attacks by Houthi rebels.

Image Credits: nbcnews.com

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