ILA Strike Watch 2012: Ports May Shutdown in 11 Days
We’re 11 days away from one other potential blow to the U.S. economic system.
The Worldwide Longshoremen’s Affiliation (ILA) have reached the tip of their contract with the US Maritime Alliance (USMX) and are ready to shut down the east coast and gulf ports with a strike.
Initially, this strike was scheduled to begin again in October, however because of the work of the Federal Mediation & Conciliator Service (FMCS), the contract was prolonged till December 29th. This allowed the economic system to not take successful going into the fiscally vital Christmas and vacation season.
ILA President Dennis Daggett has been given authority by the union to name for a strike if a brand new settlement has not been reached by December 29th. That schedules the strike to begin on December 30th.
This may successfully cease imports and exports from shifting by the ports all alongside the east coast of the nation.
We simply noticed an 8 day strike by the Worldwide Longshore and Warehouse Union Native 63 Workplace Clerical Unit (“OCU”) on the west coast of the nation that shut down terminals on the ports of Los Angeles and Lengthy Seaside.
Estimates put the influence of that strike at $8 billion.
This threatened east coast strike is way extra sweeping and will hit the economic system even tougher.
ILA and USMX resumed talks simply over every week in the past in Delray Seaside, FL. Up to now, no phrase has come of decision.
On the 14th, USMX posted the next on their web site:
Members of the USMX Bargaining Committee met with ILA Wage Scale Delegates on December 10, 2012, and introduced a complete proposal for a brand new contract. Though the proposal was shortly rejected by the Wage Scale delegates and a strike vote was taken, different small committees met in the course of the week. At one of many small committee conferences, the ILA introduced a counterproposal, which was taken below advisement by USMX. Whereas a number of points have been mentioned, no agreements have been reached.
A serious sticking level within the negotiations is container royalty funds.
The day after talks resumed, ILA Native 1588 put the next up on their web site in regards to the contract USMX supplied and the negotiations:
USMX Proposes a 6 yr contract with solely a $2 wage enhance inside the 6 years.
Put a cap on present Container Royalty (supplemental wages) and finish your Container Royalty in 25 years. All new longshoremen won’t be eligible to obtain any royalties. USMX can also be trying to eradicate all blow techniques and implement a shift system. This implies when you’re not on the terminal you’ll not receives a commission. Regardless of what number of years you might have within the trade or have left within the trade you’ll solely get a Container Royalty (supplemental wage) examine for the following 25 years then it will likely be a factor of the previous. After your entire Wage Scale delegation (200 plus members) denied USMX’s proposal for cuts USMX walked out.
President Daggett requested the ILA’s 200-member wage scale committee for a strike authorization after he delivered a speech accusing United States Maritime Alliance of making an attempt to reverse good points the ILA has made in earlier contracts. The roll name vote in favor of the strike authorization was unanimous. We’re nonetheless within the means of negotiating and the times are numbered so brace your self for a hell of a experience. Do not forget that Native 1588 set a price range for 100 thousand {dollars} to ship pickets the place ever our cargo is diverted to. We’ve got the federal mediators in Del Ray Florida [sic.] with us and proceed to try to make progress.
President Harold Daggett of the ILA is refusing to accept much less then [sic!] what’s due, what’s ours by proper, what’s ours by the sweat of our labor and energy.
I.L.A. WILL CONTINUE TO STAND STRONG!!!!!
We’ve got your again President Daggett!!!
If different factions of the ILA are planning to spend related cash on the strike that the Native 1588 is, the ILA is poised to spend tons of of hundreds of {dollars} on a strike that would price our nation’s economic system billions.
It’s a scary prospect. A strike would damage companies all through the nation, price individuals jobs dependent upon the stream of the provision chain, and damage our nation as an entire.
In 2002, a strike occurred that compelled President George W. Bush to make use of the Taft-Hartley Act to finish. Many are hoping President Obama will act earlier than the strike begins and the Taft-Hartley Act turns into vital.
Yesterday, the Nationwide Retail Federation (NRF) despatched a letter to President Obama urging him to do one thing earlier than this strike occurs and the nation experiences one other catastrophe. A press launch on their web site included this:
“A strike of any variety at ports alongside the East and Gulf Coast might show devastating for the U.S. economic system,” NRF President and CEO Matthew Shay wrote to the president. “We name upon you to make use of all means vital, together with Taft-Hartley, to maintain the 2 sides on the negotiating desk and head off a coast-wide strike.”[1]
Right here at Common Cargo Administration, we’re hopeful that the events will attain an settlement amicably and no strike will occur.
Nonetheless, we’re dedicated to serving to shippers maintain their import and export wants it doesn’t matter what occurs.
We’re able to deal with your logistics wants and challenges whether or not meaning diverting your shipments or expediting our truckers to get to your delivery containers earlier.
We all know the well timed and secure supply of your items is significant to your organization and we’ll do all the things potential to verify your online business’ import and export wants are met it doesn’t matter what the strike image seems like.
We’ll preserve watching the strokes made on that image and preserve you up to date with our ILA Strike Watch. Within the meantime, tell us any considerations or questions you might have about your worldwide delivery wants.
