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

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.