USMX not giving up right to new technology

USMX not giving up right to new technology    United States Maritime Alliance, a group representing employers negotiating a master contract with the International Longshoremen’s Association, said Tuesday it will not give up its right to introduce new technology in the port industry, and expressed regret over ILA delegates' decision not to let its full membership vote on a contract proposal.
   “USMX and its members will never give up their right to introduce new technology. It goes against all logic. The employees who may or may not be displaced by technology are well-protected under provisions of the master contract,” said James A. Capo, chairman and chief executive officer of USMX, an alliance of container carriers, direct employers, and port associations that serves as the representative of the management groups in master contract bargaining with the ILA.
   Technology has become a sticking point in the negotiations for a contract to replace the current labor agreement that expires Oct. 1, 2010.
   USMX said in its statement Tuesday that ILA’s wage scale committee, at its meeting in Orlando, Fla., two weeks ago unanimously rejected the proposal because USMX would not agree to a moratorium on new technology in the ports it represents along U.S. East and Gulf coasts waterfront.
   USMX said its proposal to extend the current master contract until September 2012, did not succeed because some 200 ILA wage scale delegates unanimously rejected the proposal before it could be presented to the 18,500-person union membership.
   Capo said it was “unfortunate that the ILA rank and file did not get the opportunity to study the facts of the management proposal before the wage scale committee voted it down. We all ultimately have the same goal — to create a strong maritime industry that can support a well-paid, well-trained labor force.”
   Capo said he did not know why technology has become such a big issue in negotiations, noting that in the current shipping downturn, most companies do not have funds to heavily invest in new technology.
   He said he is not aware of any plans to build new, highly automated terminals, and noted that one of newest and most automated terminal in the country — that of APM Terminals in Portsmouth, Va. — has created new jobs for ILA members.
   “The ability to introduce technology enhances the flow of cargo and facilitates productivity increases that are necessary to enable management to pay for improved wages and benefits. The ILA is completely overlooking the financial gains each and every member will enjoy, in order to veto any implementation of new technology.”
   USMX detailed its proposal to extend the current contract for two years:
   ' Wage increases originally due on Oct. 1 would be deferred until Oct. 1, 2010, at which time all levels would receive a raise.
   ' A starting rate and salary increase to $20 per hour for anyone earning less than that amount. USMX said 12 percent of ILA's labor would receive up to a $4-an-hour increase at the end of this month.
   ' Additional increases for top wage earners and those in the tiered wage progression would take place in 2012. By the end of the proposed extension, about 85 percent of all longshore workers would be earning the top wage rate of $32 per hour. Average increases over the three-year extension for most lower-tiered workers would range from $8 per hour to $11.50 per hour.
   ' In exchange for the wage deferral, management agreed to eliminate the cap on container royalty, making those additional funds available for use by the ILA. This means an estimated additional $50 million per year would be accessible on top of the $146 million the ocean carriers already pay for bonuses directly to longshore workers.
   ' Increased funding for local benefit plans to ensure that every port has sufficient means to provide benefits for the term of the contract. Funding would come from new ocean carrier contributions and the use of existing funds.
   ' Management’s reaffirmation of the basic principle of ILA jurisdiction for all crafts.
   ' Continuation of the managed health care plan available for longshore employees, their families and retirees. The plan is fully funded by the ocean carriers, except for minimal co-pays.