Tentative agreement struck between USMX and ILA

Four months after the initial expiration of a master contract, the United States Maritime Alliance and the 14,500 members of the International Longshoremen's Association came to terms on a new, tentative labor agreement.

It was announced Feb. 1 that the contract is six years in duration, although no details of the deal were released in a statement by the Federal Mediation and Conciliation Service.

"The tentative agreement is subject to the ratification procedures of both parties and, as well, to agreements being achieved in a number of local union negotiations," said FMCS Director George Cohen.

Cohen said, "local negotiations are ongoing and will continue without interruption to any port operation."

The retail sector, a significant customer base of container terminals on the U.S. eastern and Gulf seaboards, expressed cautious relief.

"We urge the parties to quickly complete any outstanding negotiations, including local negotiations at each of the individual 14 ports, and quickly ratify the new labor agreement," said Matthew Shay, the president and chief executive of the National Retail Federation.

Just before the new year, the two sides had resolved an issue regarding container royalty payments to dockworkers.

The focus now turns to the local talks, which involve issues specific to each port. Work rules at the Port Authority of New York and New Jersey had reportedly been the most recent key issue in the overtime negotiations, with terminal operators wanting to change legacy provisions that require excess staffing and pay for workers who aren't on the job. The ILA said the proposed changes were too extreme. The New York-New Jersey ILA chapter was also concerned about preserving language giving them exclusive authority to repair and maintain chassis equipment provisioned there. In comparison, this is a minor issue for ILA workers at the ports of Charleston and Savannah.

Nonetheless, the FMCS' Cohen said he was pleased with how the process worked itself out in the end.

"Again, collective bargaining has proven its worth by avoiding a potential work stoppage that would have had a severe negative impact on the nation's economy."

"On behalf of the FMCS, I want to especially convey my thanks to ILA President Harold Daggett and USMX Chairman and CEO James Capo for their leadership, patience, and persistence and to their respective hard-working negotiating committees," said Cohen.

Source: Cargo Business Newswire