Cargo Business News

February 2013

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24 pOrT nEWs ilA rElEAsEs TErms Of nEW COnTrACT The International Longshoremen���s Association released details yesterday of the newest contract for union dockworkers at 14 East Coast and Gulf Coast ports. The union announced that, subject to the final contract language and ratification by the ILA membership, USMX and the ILA have agreed on terms for the new contract. The new six-year Master Contract, which won���t take effect until local bargaining is finished, will expire on September 30, 2018. Provisions for container royalties, a major sticking issue, include a minimum coastwise guarantee of $211 million. Additionally, they will cover up to $14 million in administrative expenses. Container royalties that exceed these amounts will be evenly split between USMX and ILA and will be centrally collected according to a plan to be determined. CR5 will continue with some changes to the amounts that can be received without application. New language was also negotiated to protect workers who have been displaced due to new technology and automation. Additional provisions were put in place to preserve chassis maintenance and repair work. Regarding wages, a $1.00 per hour wage increase will take effect on October 1, 2014. Two more $1.00 increases were negotiated, one scheduled on October 1, 2016 and another on October 1, 2017. New employees will start at $20.00 per hour. In addition, the wage progression formula in the Master Contract extension was shortened from 9 years to 6 years. Health care coverage, provided by MILA at no cost to eligible employees, will continue and the local fringe benefit contribution will increase by $1.00 per hour. The Container Freight Station Fund will continue for both the operation of container freight stations and training, with a contribution of 25 cents per-ton in the first three years. The terms are subject to review in the last three years and a to a CFS subsidy adjustment for each of the six years. Random drug testing will be used in New York and New Jersey only if the Waterfront Commission agrees to stop testing ILA members. The Jurisdiction Committee has been granted new powers to strengthen enforcement of ILA jurisdiction, including issuing a $10,000 fine in certain circumstances. ClEriCAl WOrkErs AT pOrTs Of lA-lOng BEACh rEjECT COnTrACT TErms As of this issue���s press time, union clerical worker at the ports of Los Angeles and Long Beach had rejected the terms February 2013 of the labor contracts negotiated by the International Longshore and Warehouse Union leadership in early December. Clerical workers for three port employers���China Shipping, Evergreen and APM Terminals���did not approve their contracts, a union source told the Press-Telegram. The union source also said that workers from the other terminals voted to authorize their contracts, but a statement issued by the Harbor Employers Association confirms that the entire unit rejected the agreement. ���Some media outlets have reported incorrectly that OCU workers at just three harbor employers had failed to ratify the tentative agreements that were reached on December 4, 2012, that ended the workers��� seven-day ports strike,��� said the Harbor Employers Association in a statement. ���In fact, the harbor employers were formally notified by the union today that, in voting on Wednesday night, all 16 OCU bargaining

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