ILA Contract Renewal

According to the officials, the the International Longshoremen’s Association (ILA)  and the United States Maritimes Alliance (USMX), approved a tentative agreement  for the new master contract. Members of each group met this week to review the negotiated contract, and agreed to recommend the master contract to their respective members for ratification.

The six-year master contract, set to end in 2017, includes a $1-per-hour wage increase in 2014, 2016 and 2017 for ILA workers. As for container royalties, payments given based on the weight of cargo received at each terminal, the master contract has provisions that carriers will fund annual royalties of $211 million for each of the six years as well as an additional $14 million for administrative expenses. The provision also says any container royalties that exceed $225 million have to be shared with the ILA.

In addition, free medical will continue to be granted to workers and new language has also been introduced to safeguard jobs displaced by automated equipment, while the ILA will also maintain jurisdiction over container repairs and other work of this nature.

“This monumental result paves the way for six years of stable labor-management relations covering all the Atlantic and Gulf Coast ports,” said Federal Mediation and Conciliation Service director George Cohen. He also noted that “given the industry’s essential role in the US economy, it’s vitally important that we’ve resolved our differences and have come to an agreement, preventing any disruption of port operations.”
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