ILA Members to Get $3 Per Hour Raises, Continued Royalties, in Contract Expiring 2018

As local negotiations for East/Gulf Coast longshoremen continue, the International Longshoremen's Association released the details of its agreement with the U.S. Maritime Exchange, which avoided a Feb. 6 strike. Key details are that the contract expires Sept. 30, 2018, and includes $1 per hour pay raises in 2014, 2016 and 2017. The ILA noted that the agreement is "subject to the drafting of final contract language and acceptance by the ILA membership." Other agreement details, confirmed by the USMX, include:

• The new Master Contract will not take effect until all local bargaining is concluded.
• New employees will start at $20.00 per hour.
• The wage progression formula in the Master Contract extension, which defines how long it takes a new longshoremen to reach the top pay level, was shortened from 9 years to 6 years.
• Provision of health care coverage at no cost to eligible employees will continue.
• There will be a minimum coastwise guarantee of $211 million in container royalty for each year of the contract.
• An additional up to $14 million of administrative expenses will be covered.
• All container royalty over these amounts will be evenly split between USMX and ILA, and container royalty will be centrally collected according to a plan that has yet to be finalized.
• The Container Freight Station Fund will continue for both the operation of container freight stations and training with a contribution of 25¢ per ton in the first three years and subject to review in the last three years and a CFS subsidy adjustment in each of the six years.
• The local fringe benefit contribution will increase by $1.00 per hour.
• Random drug testing will be used in New York and New Jersey only if the Waterfront Commission agrees to stop testing ILA members.
• New language was negotiated to protect those who have been displaced due to new technology and automation, though no details were provided.
• Additional language was negotiated to preserve chassis maintenance and repair work, as well as to beef up enforcement by the Jurisdiction Committee of ILA jurisdiction, including a $10,000 fine in certain circumstances.
• Major damage criteria and maintenance jurisdiction were expanded.