Reprieve: US east, Gulf coast dockers and bosses okay 30-day extension

THE US east and Gulf coast dockers union has agreed to a 30-day extension of the current labour contract between the International Longshoremen's Association (ILA) and the employers US Maritime Alliance (USMX), thus averting a strike that was to start December 29.

"The container royalty payment issue has been agreed upon in principle by the parties, subject to achieving an overall collective bargaining agreement," said federal mediator George Cohen, referring to the main sticking point which brought on the strike threat.

Management wants phase out the bonus system, called "royalties", paid to dockers on the weight of laden containers they move. The bonuses cost US$211 million in 2011 or $4.85 per ton of container cargo. Management was willing to provide it to current employees for 25 years but not to new hires. The ILA wanted no change and no further discussion on the topic.

Mr Cohen said he would not disclose the substance of the container royalty payment agreement. "While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period," he said.

The next possible strike date if talks fail to produce a settlement is after Wednesday, February 6, reported American Shipper. The agreement keeps open 14 container ports that would have closed. Talks broke down at the end of September and a strike was averted then by the parties agreeing to a 90-day contract extension.

Said National Retail Federation CEO Matthew Shay: "While a contract extension does not provide the level of certainty that retailers and other industries were looking for, it is a much better result than an east and Gulf coast port strike that would have shut down 14 container ports from Maine to Texas."