On Tuesday evening, August 28, over 700 ILA members from Local 1804-1 unanimously gave its president, Dennis A. Daggett, the authority to recommend and call for a strike if that action becomes necessary when the current Master Contract expires on September 30, 2012. The current President of the International and Dennis Daggett’s father, Harold J. Daggett, was in attendance at Local 1804-1’s vote.
There are no meetings currently scheduled between USMX and the ILA. Negotiations, which were progressing up until last week with negotiated landmark agreements on automation and chassis work, fell apart when members of USMX suddenly took a hardline position and demanded givebacks in overtime pay, eight hour guarantees and elimination of jobs.
Background:
Negotiations between the United States Maritime Alliance, Ltd. (USMX) and the International Longshoremen’s Association, AFL-CIO (ILA), which were progressing up until last week with negotiated landmark agreements on automation and chassis work, fell apart when the ILA walked away on Wednesday, August 22 over USMX’s insistence to negotiate on terminal efficiency improvements. The ILA characterized the USMX stance as a “hardline position … demand[ing] givebacks in overtime pay, eight hour guarantees and elimination of jobs.”
The Parties:
The United States Maritime Alliance, Ltd. (USMX) represents employers of the East and Gulf Coast longshore industry. Membership consists of 24 container carrier members, including the 10 largest carriers worldwide, and every major marine terminal operator and port association on the East and Gulf Coasts. USMX’s members are responsible for the transportation and handling of cargo shipped to and from the United States. The non-profit, incorporated membership association headquartered in Iselin, New Jersey is led by Chairman and CEO, James A. Capo.
The International Longshoremen’s Association, AFL-CIO is the largest union of maritime workers in North America, representing longshoremen on the Atlantic and Gulf Coasts. The ILA is headquartered in North Bergen, New Jersey and is led by President Harold Daggett
Industry Concerns:
The National Retail Federation wrote a letter on August 27 to both the USMX and the ILA asking them both to return to the table in negotiations for a new East Coast and Gulf Coast longshoremen’s contract, saying retailers heading into the crucial holiday season will be forced to divert cargo elsewhere in a matter of days.
The Retail Industry Leaders Association (RILA) sent a letter on August 29, urging the two parties to continue negotiations in order to reach a contract agreement before the September 30 deadline. RILA warned that a disruption caused by the strike would impact an entire industry during a peak shipping season and seriously impede the flow of commerce.
MIQ Logistics is prepared to assist in your contingency planning, should you wish to accelerate your deliveries; divert shipments to West Coast, Mexican or Canadian ports; switch to airfreight; or, simply stay the course. For additional information please contact your local MIQ Logistics representative.