ILA Releases Details of the Master Contract in U.S. Port Strike Negotiations

By MarEx 2013-02-13 14:26:00

Subject to the drafting of final contract language and acceptance by the ILA membership, USMX and the ILA have agreed as follows:

• The new Master Contract will expire on September 30, 2018.

• The new Master Contract will not take effect until all local bargaining is concluded.

• There will be a $1.00 per hour wage increase on October 1, 2014; another $1.00 increase on October 1, 2016 and another $1.00 increase on October 1, 2017.

• New employees will start at $20.00 per hour.

• The wage progression formula, which was in the Master Contract extension, has been shortened from 9 years to 6 years.

• MILA which provides health care coverage at no cost to eligible employees will continue.

• There will be a minimum coastwise guarantee of $211 million in container royalty for each year of the contract.

• In addition, up to $14 million of administrative expenses will also be covered.

• All container royalty over these amounts will be evenly split between USMX and ILA.

• Container royalty will be centrally collected according to a plan that has yet to be finalized.

• CR5 will continue with some changes to the amounts that can be received without application.

• The Container Freight Station Fund will continue for both the operation of container freight stations and training with a contribution of 25¢ per ton in the first three years and subject to review in the last three years and a CFS subsidy adjustment in each of the six years.

• The local fringe benefit contribution will increase by $1.00 per hour.

• Random drug testing will be used in New York and New Jersey only if the Waterfront Commission agrees to stop testing ILA members.

• New language has been negotiated to protect those who have been displaced due to new technology and automation.

• Additional language has been negotiated to preserve chassis maintenance and repair work.

• New language has been negotiated to beef up enforcement by the Jurisdiction Committee of ILA jurisdiction including a $10,000 fine in certain circumstances.

• Additional jurisdiction language has also been negotiated.

• Major damage criteria and maintenance jurisdiction have been expanded.