East Coast ILA Port strike threat recedes

East Coast ILA Port strike threat recedes

http://www.postandcourier.com/apps/pbcs.dll/article?AID=%2F20120921%2FPC...

• David Slade
• Posted: Friday, September 21, 2012 12:01 a.m.

ILA Local 1422 President Ken Riley. (Brad Nettles/Staff/File)

Just 10 days from now, U.S. East Coast and Gulf Coast ports were facing possible shutdowns due to the expiration of a labor contract, but a deal has been announced that should keep negotiations going through December.
“I think it’s a big relief for everybody,” Billy Adams, executive director of the S.C. Stevedores Association, who was in New Jersey for the labor talks Wednesday and Thursday. “It gives us a little bit more time to better understand each others’ positions.”

At issue is a contract between the International Longshoremen’s Union and the U.S. Maritime Alliance, covering ports from Maine to Texas, including The Port of Charleston. Talks became acrimonious and stalled in August, and the two sides just returned to the bargaining table Wednesday with the help of federal mediators.
That’s when an agreement was reached to both extend the existing contract by 90 days and to continue to negotiate.
“We still have a lot of work to do, but we did want to alleviate any anxiety about a work interruption at this point, recognizing the fragile state of the economy,” said Ken Riley, president of the ILA in Charleston, who also attended the two days of talks. “As long as progress is being made, we’ll keep going.”
The ILA and USMX had earlier made progress on issues involving port automation and work jurisdiction over truck chassis pools, but remained far apart on some work-rule issues related to how many union workers are hired for particular assignments and how many hours’ pay they are guaranteed.
Under the current, nearly six-year-old contract, starting pay for dock workers is $20 an hour, and the top straight-time rate is $32. Pay increases for longevity, and overtime, can significantly raise dock workers’ compensation.
In a claim disputed by the ILA, the USMX says: “Longshore workers on the East and Gulf coasts are among the best paid union workers in the U.S., with ILA members receiving an average of $124,138 a year in wages and benefits.”
Federal Mediation and Conciliation Service Director George H. Cohen said the USMX and ILA agreed to the contract extension “for the good of the country” to avoid any interruption in interstate commerce.
The union and the association representing container carriers and terminal operators did not respond to requests for additional information.
Adams said talks are finished for this week, but are expected to resume in October. Local and regional contracts have to be resolved in addition to the master contract covering all East Coast and Gulf Coast ports.
“I think both sides want to get it done,” Riley said.
Retail industry groups have been warning that a shutdown of East Coast and Gulf Coast ports could wreak havoc on importers and the U.S. economy. Companies have been exploring options for re-routing cargo away from East Coast and Gulf Coast ports, at considerable expense.
“The looming possibility of a work slowdown and/or complete stoppage at the East Coast and Gulf Coast Ports is a serious threat to the toy industry during the critical pre-holiday shipping season,” said the Toy Industry Association on Sept. 13.
Port and shipping company officials have said re-routings appear to have been limited, but it appears some shipments were accelerated in advance of the Sept. 30 contract expiration date.
Earlier this month, a coalition of apparel groups warned that “in addition to causing extreme losses of port business and huge expenses for many levels of the supply chain, the need for unwanted cargo diversions and the existence of full-on work stoppages, if they were to occur, would have dire consequences for the already-struggling U.S. economy and the consumer population as a whole.”
On Thursday, the National Retail Federation applauded the contract extension, but said: “Until a final contract is ratified, America’s retail community will remain concerned.”
Reach David Slade at 937-5552