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ILA and USMX Reach "Positive" Agreement On Container Royalty that Allows Negotiations to Continue Through February 6, 2013: Year-End Strike Averted



THE ISSUE: CONTAINER ROYALTY

A message from ILA President Harold J. Daggett

Friday, December 28, 2012

Dear ILA Member:

I am pleased to announce that the ILA made major gains on the Container Royalty issue that will protect our ILA members. Consequently, we agreed to extend the ILA Master Contract by 30 days, beyond the December 29th deadline (because of the year-end holidays, the deadline of the new extension will be February 6, 2013.

Below is a portion of the statement from FMCS Chairman George Cohen announcing the extension.

Statement by FMCS Director George H. Cohen
On United States Maritime Alliance
And International Longshoremen's Association
Labor Negotiations

WASHINGTON, D.C. - "I am extremely pleased to announce that the parties have reached the agreements set forth below as a result of mediation session conducted by myself and my colleague Scot Beckenbaugh, Deputy Director for Mediation Services, on Thursday, December 27, 2012:

"The container royalty payment issue has been agreed upon in principle by the parties, subject to achieving an overall collective bargaining agreement. The parties have further agreed to an additional extension of 30 days during which time the parties shall negotiate all remaining outstanding Master Agreement issues. The negotiation schedule shall be set by the FMCS after consultation with the parties."

"Given that negotiations will be continuing and consistent with the Agency's commitment of confidentiality to the parties, FMCS shall not disclose the substance of the container royalty payment agreement. What I can report is that the agreement on this important subject represents a major positive step toward achieving an overall collective bargaining agreement.

"On behalf of our Agency, I want to thank the parties, especially ILA President Harold Daggett and USMX Chairman & CEO James Capo, for their ongoing adherence to the collective bargaining process, which has enabled them to avoid the imminent deadline for a work stoppage that could have economically disruptive nationwide implications."