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Talks Between ILA and USMX Break Down

Talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) broke down Tuesday over the issue of Container Royalties (supplemental wages).  A strike now appears likely when the current contract expires on December 29.  Below is a recap of the situation.

  • March 29, 2012: USMX and ILA started joint contract negotiations, six months before the September 30 expiration of the contract.
  • July 27-29: The ILA and USMX resume negotiations and announce an agreement on automation and protection of ILA jurisdiction over chassis maintenance and repair.
  • August 22: A three-day negotiating session is canceled after the ILA rejects a USMX request to discuss changes in work rules and pay practices.
  • September 19-20: The USMX and the ILA resume negotiations and agree to extend negotiations on a new Master Contract through Dec. 29, which is 90 days beyond the expiration of the current contract.
  • October 24: USMX, ILA continued negotiations on major issues, aided by a federal mediator.
  • December 10: ILA Wage Scale delegates rejected a USMX Master Contract proposal and voted to strike when the current extension expires on Dec. 29.
  • December 14: ILA presented a counterproposal, which was taken under advisement by USMX.
  • December 18: USMX & ILA labor talks break down over the issue of container royalties.

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 (NRF) and The Retail Industry Leaders Association (RILA), as well as other associations, separately wrote letters this week to President Obama asking him to engage directly in contract negotiations between the International Longshoremen’s Association and the United States Maritime Alliance, Ltd.

MIQ Logistics Comment

MIQ Logistics will continue to monitor the situation and update as additional information is available. For additional information please contact your local MIQ Logistics representative.