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Advisories ::
West Coast Port Labor Contract Ratified

Extracted from The Journal of Commerce On-line

LOS ANGELES — Overwhelming votes of approval for a new waterfront contract marked the end of a long road to labor peace Wednesday as employers and union longshoremen ushered in a new era of technology at U.S. West Coast ports.

The International Longshore and Warehouse Union said almost 90 percent of member dockworkers voted to ratify the accord, a record for a new contract.

The Pacific Maritime Association also said that its members had overwhelmingly approved the deal, which provides longshoremen with a 58 percent increase in pension benefits and jurisdiction over new jobs created by technology. The contract also maintains the union medical plan in which employers pay 100 percent of the cost of insurance premiums.

The contract goes into effect Feb. 1.

"The ILWU batted three-for-three on its main concerns," said ILWU President James Spinosa.

Employers also praised the new contract's provisions that will allow terminal operators to introduce productivity-enhancing technology to West Coast ports.

"Given its huge consumer base and infrastructure links to the rest of the nation, the West Coast is the logical place for companies to ship their goods into the United States," said PMA President Joseph Miniace. "We want to continue to give shippers every reason to send their goods through our ports. This agreement will enable us to do just that."

The contract is expected to result in the eventual elimination of as many as 400 marine clerk jobs as carriers are permitted to electronically file manifest information directly to marine terminals. In return, the ILWU won contractual jurisdiction over a number of planning jobs it had not previously controlled.

The battle over technology came at a steep price. After four months of fruitless negotiations, longshoremen in September began a series of work slowdowns that culminated in a 10-day lock-out by the PMA. The Bush administration won a Taft-Hartley injunction ordering the ports to reopen. The injunction also led to full-time participation in the negotiations by federal mediators.

The lock-out created a backlog of 200 vessels at West Coast ports, resulting in severe congestion at terminals that employers say won't return to normal operations for another month.

While the contract is designed to modernize West Coast ports, employers and the ILWU are expected to challenge developments from a deal that is generally recognized as being vaguely written. Rather than establishing detailed provisions for the introduction of technology, both sides agreed to write a broad contractual framework of controlling principles for the application of present and future technologies.

The new contract will remain in effect through June 30, 2008.

By Bill Mongelluzzo

Global Network Locator