Biggest longshore union local votes to authorise US east coast strike

THE International Longshoremen's Association (ILA) said its New York area Local 1804-1 unanimously gave its president Dennis Daggett, son of ILA international president Harold Daggett, the authority to recommend a strike to shut down America's east and Gulf coast ports, reported American Shipper.

Major retailers are concerned about where to land cargo, even considering costly air freight, while maritime employers insist on resuming talks the longshoremen broke off when they became uncomfortable when topics were raised about capping container royalty payments and archaic work practices. Now the ILA wants management to make an offer they can vote on and strike if they reject it.

The 700 members from the biggest ILA local gave the "authority to recommend and call for a strike if that action becomes necessary when the current Master Contract expires on September 30".

Harold Daggett said negotiations had been progressing with negotiated landmark agreements on automation and chassis work, but then "fell apart when the employers took a hardline and demanded givebacks in overtime pay, eight hour guarantees and elimination of jobs".

The employers' US Maritime Alliance (USMX) saw it in terms of container royalties, which it sought to cap and use the funds for other purposes.

"Container royalties have morphed from an assessment imposed through arbitration in 1960 to what they are today - another form of compensation for ILA workers, who are among the nation's most highly compensated," said the USMX on its website.

"The dramatic increase in royalty payments resulted from a combination of two factors - the reduction in the number of ILA workers and an increase in the tons of container cargo - from about 50 million tons in 1996 to 110 million in 2011. With fewer workers and more tons, royalty payments, which are based on the weight of containerised cargo, have increased over the years. In the 14 years ending September 30, 2011, the payments totalled US$1.8 billion. In Savannah alone, they increased from $6,028 in 1996 to nearly $36,000 per worker in 2011," the USMX said.

Union spokesman James McNamara said the union has requested, but has not received, a "final and best offer" from the employers, but USMX chairman James Capo told American Shipper that he has received no formal request from the ILA.

"I don't have anything to give them. We are still in the middle of bargaining as far as I am concerned," he said.

Mr Capo conceded no meetings are scheduled. "I'm available. We have issues to discuss, and for whatever reason, they seem reluctant to talk about those. We have certain issues that are important to management, pay practices, archaic work rules. That is what broke these negotiations apart, their unwillingness to discuss those things we need to talk about."

Mr Capo said he recognised shippers "are very nervous, but I don't know what to tell them. I am willing to sit down and talk, but we have to have some intelligent discussion about the issues that are important to [USMX members]".