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Port Strike Averted... for 30 Days

Friday, December 28, 2012 - 12:21 PM

Container ship at Port Newark, NJ. (photo by joevare / Flickr)

(New York, NY - WNYC) A federal mediator has announced that dockworkers at East and Gulf Coast ports will not go on strike this Saturday, as threatened. The International Longshoremen’s Association and United States Maritime Alliance have agreed to extend their contract negotiations for an additional 30 days.

A strike, which had the potential to cost hundreds of millions of dollars in lost wages and economic activity,  seemed likely after talks between the two sides broke down on December 18.

At issue was a wage structure that includes royalties to union workers based on cargo weight. There is now an agreement in principle on wages, with more bargaining needed to seal the deal.

The National Retail Federation said it welcomed the news while striking a note of caution in a statement: "We continue to urge both parties to remain at the negotiating table until a long-term contract agreement is finalized." The New York Shipping Association agreed, saying, it "is looking forward to getting to the table to begin serious bargaining on the local agreement and to start the process of change.”

Below is a statement on the agreement by Director George H. Cohen of the Federal Mediation and Conciliation Service:

WASHINGTON, D.C. — “I am extremely pleased to announce that the parties have reached the agreements set forth below as a result of a 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 (i.e., until midnight, January 28, 2013) during which time the parties shall negotiate all remaining outstanding Master Agreement issues, including those relating to New York and New Jersey.  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. While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period.”

“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.”

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