ILA, employers negotiate contract extension

ILA, employers negotiate contract extension       The International Longshoremen’s Association said its Wage Scale Committee gave overwhelming approval to a three year extension of its master contract on Wednesday night.
      The proposed agreement, which came through a 58-9 vote of union locals, comes a year before the current contract expires and extends it to Sept. 30, 2012. The union’s rank-and-file membership will vote on the proposed contract in November.
      “I think it is a fair agreement given the economic times,” said James Capo, chairman and chief executive officer of the United States Maritime Alliance (USMX), the organization of terminal operators and steamship lines that negotiates the master contract with the ILA, which represents dockworkers on the U.S. East and Gulf coasts.
      He said the contract will provide ILA members with an immediate raise and a way to close the gap between what newer ILA members make versus long-time employees. The difference between what newcomers make and the top wage will continue, but be gradually closed in the third, fifth and seventh year, and then eliminated after a worker has been on the job for nine years.

Capo

      The proposed contract will also eliminate a current “cap” on container royalty payments. There is also relief for carriers, Capo noted, as they will receive the first $42 million in container royalty payments before the union begins collecting the royalties, which will be without a cap going forward.
      The union and employers, meeting in Orlando, Fla., agreed to form a “standing technology committee” to study how automation may affect ILA members.
      Under the agreement, lower-tier ILA member will obtain an immediate wage increase of $1.50 per hour and more highly paid workers will obtain a $1 per hour increase. Also the starting wage will be increased from $16 to $20 per hour.
      On Oct. 1, 2011, employees making the top wage rate of $31 per hour will receive a $1 per hour hike and all other workers will receive increases pegged to how long they have been employed in the industry.
      Details of proposal are available here. ' Chris Dupin