Matson, merchantmen unions agree to new labor contract
Jones Act ocean carrier Matson Navigation Co. and three unions representing the carrier's merchantmen employees have tentatively agreed to a new, five-year contract agreement.
The agreement, which still requires ratification by the unions' members, was reached late Monday night just hours before the current contract expired. Members of the three unions — the Sailors’ Union of the Pacific, the Seafarers International Union-Marine Cooks, and the Marine Firemen, Oilers, Watertenders and Wipers Association — had previously authorized the union leadership to call a strike if a new agreement was not reached by the expiration deadline.
'We’re very satisfied with the contract,' SUP attorney Charles Khim told the Honolulu Star Bulletin. 'In exchange for labor peace for five years, we have gotten Matson to agree to give full (wage) parity among employees.'
In previous contracts, the union had agreed to a Matson demand for the creation of a two-tiered wage system. Workers on newer Matson vessels took a pay cut under the system, despite in some cases having more seniority than other union members on older Matson vessels.
'Matson had promised to eliminate that once times got better,' Khim said. 'Times got better for this contract. Matson’s making record profits now.'
The new contract, if ratified, will also see the Oakland-based Matson increase wages, pension and fringe benefits with no reduction in the employees' health plans.
The union declined to offer further details of the tentative agreement until a ratification vote by members.
Last week, the Inlandboatmen’s Union of the Pacific and their employers — Hawaiian inter-island shipping firms Young Bros. Ltd. and Hawaiian Tug and Barge — agreed to a new three year contract that will see IUP members receive a 53.8 percent increase in wage and benefit payments.
Matson, merchantmen unions agree to new labor contract
