Supply Chain News / Ocean / Ports

30-Day Extension Averts Imminent Port Strike

Extension to January 28, 2013 delays labor action.

December 28, 2012

The International Longshorement's Association (ILA) and the U.S. Maritime Alliance (USMX) have reached a tentative agreement on the issue of container royalty payments. The royalties were a contentious issue in the negotiations.

“I am extremely pleased to announce that the parties have reached the agreements set forth below as a result of a mediation session conducted by myself and my colleague Scot Beckenbaugh, Deputy Director for Mediation Services, on Thursday, December 27, 2012:

 

George H. Cohen, director of the Federal Mediation and Conciliation Service (FMCS), which helped broker the agreement, said,  “The container royalty payment issue has been agreed upon in principle by the parties, subject to achieving an overall collective bargaining agreement. The parties have further agreed to an additional extension of 30 days (i.e., until midnight, January 28, 2013) during which time the parties shall negotiate all remaining outstanding Master Agreement issues, including those relating to New York and New Jersey. The negotiation schedule shall be set by the FMCS after consultation with the parties.”

 

“Given that negotiations will be continuing and consistent with the Agency’s commitment of confidentiality to the parties, FMCS shall not disclose the substance of the container royalty payment agreement," Cohen continued. "What I can report is that the agreement on this important subject represents a major positive step toward achieving an overall collective bargaining agreement. While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period.”

 

“On behalf of our Agency, I want to thank the parties, especially ILA President Harold Daggett and USMX Chairman & CEO James Capo, for their ongoing adherence to the collective bargaining process, which has enabled them to avoid the imminent deadline for a work stoppage that could have economically disruptive nationwide implications.”
 

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