USMX and ILA ratify new contract

The approval came eight days after ILA members voted to ratify the contract, which covers 14,500 port workers on the East and Gulf Coasts.

Negotiations on a new contract began more than a year ago to replace the agreement that expired on 30 September 2012. Both parties agreed twice to an extension and to continue bargaining under the auspices of the Federal Mediation and Conciliation Service (FMCS).

David F Adam, chairman and CEO of USMX, said “Throughout the course of the negotiations both sides recognised the stakes involved and the important of reaching an agreement that would ensure the unfettered movement of the more than 100 million tonnes of containerised cargo shipping in and out of the ports each year.”

The new contract includes three US$1 an hour wage increases over the six year life of the agreement and protects the jobs of workers displaced by the introduction of new technology and automation.

In addition, USMX has agreed to pay new employees at US$20 an hour and guarantees that carriers will fund the annual container royalty payments at US$211m, the amount paid in 2011. An additional US$14m will be paid for administrative expenses and container royalties that exceed US$225m will be shared with the ILA.