JOC Reports - ILA Union Chief Says Strike Is Likely

The Journal of Commerce is reporting that after negotiations for a new International Longshoremen's Association contract broke down Wednesday, ILA President Harold Daggett warned that a strike is likely when the current contract expires Sept. 30. "It looks like we're going to have a strike," Daggett told The Journal of Commerce.

USMX CEO James Capo said USMX and its members were "disappointed with the uncompromising stand the ILA leadership is taking in the negotiations" by defening "archaic" practices such as New York-New Jersey work rules that provide some ILA members with round-the-clock pay for a few hours' work.

No new negotiations are currently scheduled. The ILA's union chief said he would ask for a final offer to present to the union's 200-member wage scale committee. "I expect they'll reject it, and vote to go on strike," he said.

Negotiations have focused on USMX's insistence on productivity and efficiency improvements, especially in Port of New York and New Jersey. ILA union chief, Daggett, added that he believes management is worried that whatever deal they give to the ILA will need to be given on the West Coast as well. The ILWU's contract expires in mid-2014.

The JOC reports that the collapse of the ILA-USMX talks sent shippers into emergency mode. Many already have accelerated shipments or are diverting cargo to the West Coast, Canada or Mexico as a hedge against a work stoppage at the end of September.

Liberty will continue to update you as the situation develops. Please contact your Liberty Account Representative for more information.