USMX Labor Updates
United States Maritime Alliance, Ltd. (USMX) / www.usmxlaborupdates.com
What’s at Stake
Background
The longshore industry plays a vital role in the flow of international trade and commerce, the lifeblood of the U.S. economy. The 14 East and Gulf Ports alone support 14,500 jobs for ILA members and more than half a million additional jobs directly related to the shipping industry. In all, the industry generates economic activity that accounts for more than two million jobs, $98 billion in wages and $11 billion in state and local tax revenue.
USMX’s 43 members – carriers, marine terminal operators and port associations – are committed to protecting the industry’s market share on the East and Gulf Coasts and its ability to compete in a global economy while continuing to provide jobs to ILA members. With an average wage of $50 an hour, ILA workers earn more than twice the average union wage in the country.
Since 1977 the United States Maritime Alliance, Ltd. (USMX) and its predecessor organizations have successfully negotiated contracts with the International Longshoremen’s Association, AFL-CIO (ILA) without any disruptions to service. This year it is imperative that we do the same. East and Gulf Coast ports support hundreds of thousands of jobs and are crucial to both national and local economies.
Both sides - labor and management - recognize the importance of reaching a timely agreement to ensure that more than 110 million tons of import and export containerized cargo continues to move each year through ports from Boston and New York to Charleston and Houston.
The Road to Success
To succeed, the industry will need to introduce new technology to port operations – technology that will increase the capacity of the ports, improve efficiency and promote business growth, which in the end is the best possible guarantee of jobs.
The expansion of the Panama Canal and increasing volumes of U.S.-bound cargo from Asia offer a great opportunity for growth for the East and Gulf Coast ports. But without the productivity improvements that technology can help deliver, ships carrying that cargo will find somewhere else to go. And that’s an outcome that neither the ILA nor USMX wants to see.
The USMX and the ILA have worked closely together for decades to create a climate of stability that has helped us attract and maintain business to the ports. At USMX, we’re committed to continuing that level of cooperation during the current round of negotiations and to reaching agreement on a contract that addresses the challenges we face and, in the end, is fair to both sides.
Negotiation Timeline
March 2012 – USMX and ILA begin negotiations
September 30, 2012 – Current master contract expires
December 29, 2012 - Contract extension expires
February 6, 2013 - Second contract extension expires
____________________________________________________
FAQs
What's the recent history of contract negotiations with the ILA?
Since 1977 the United States Maritime Alliance, Ltd. (USMX) and its predecessor organizations have successfully negotiated contracts with the International Longshoremen’s Association, AFL-CIO (ILA) without any disruptions to service. This year it is imperative that we do the same. East and Gulf Coast ports support hundreds of thousands of jobs and are crucial to both national and local economies.
Why is this important?
The longshore industry plays a vital role in the flow of international trade and commerce, the lifeblood of the U.S. economy. In 2011, millions of containers passed through our ports. They carried more than 110 million tons of import and export cargo, accounting for 95 percent of all containerized shipments from Maine to Texas.
The 14 ports on the East and Gulf of Mexico Coasts alone support more than 14,500 jobs for ILA members and more than a half a million additional jobs directly related to the shipping industry. In all, the industry generates economic activity that accounts for more than two million jobs, $98 billion in wages and $11 billion in state and local tax revenue.
What is the timeline for contract negotiations?
USMX and ILA started joint contract negotiations on March 29, 2012. The contract was subsequently extended until December 29 and again until February 6.
What are USMX’s main priorities during the contract negotiations?
USMX’s goal in the current bargaining round is to protect the industry’s market share and its ability to compete in a global economy. To achieve this, management must maintain its ability to introduce new technology that will increase the capacity of the ports, attract new capital, and promote growth. Growth is the best guarantee of jobs.
Management must also examine the industry’s current cost structures. We have to address restrictive and redundant work rules, manning practices and other cost impediments, some of which go back as far as the breakbulk days, and negatively affect our global competitive posture.
Another focus is on enhancing safety through training and continued emphasis on drug and alcohol testing programs. All of these efforts are geared toward accident prevention, the key to any successful safety program.
What is the issue with container royalties?
Container royalties were first established in 1960 as a way to protect ILA members in New York from job losses created by containerization. Today, thousands of ILA workers who were not alive in 1960 continue to receive container royalty payments that in 2011 totaled $211 million – an average of $15,500 for ILA workers at the 14 East and Gulf Coast ports.
Are employers trying to eliminate container royalties?
No. Management has proposed only capping the payments and using the excess, not as savings for employers, but to help pay for other benefits for ILA workers.
How many employees does this contract impact?
There are more than 14,500 employees in the East and Gulf Coast longshore industry represented by the ILA.
What does the Master Contract currently include?
Longshore workers have a superior wage and benefits package that places them among the top-paid union workers in the U.S. The estimated total cost of the Master Contract in its final year ending September 30, 2012 is $1.8 billion. ILA members on the East and Gulf Coasts earn an average of $124,000 annually in wages and benefits. Management covers 97 percent of the cost of a healthcare plan for both active and retired longshore workers and their dependents.
Does this contract include ports on the West Coast, too?
West Coast ports and employees are represented by a separate Master Contract and different organizations. The Master Contract that USMX and ILA are negotiating includes the 14 ports on the East and Gulf of Mexico Coasts covering more than 14,500 jobs filled by ILA members.
Reducing Child Labor & Forced Labor Toolkit
U.S. Department of Labor / www.dot.org
The International Labor Organization (ILO) estimates that there are 215 million children in child labor worldwide, 115 million of them in hazardous forms of work. It also estimates that 21 million people are in forced labor, six million of them children.
By utilizing this toolkit, you have shown that your company is concerned about these grim statistics. You are interested in reducing the chance that your products—and the raw materials they come from—are manufactured, mined or harvested by children who should be in school, or by workers locked in sweatshops or forced into work through false promises or threats.
In order to effectively combat the risks of child labor and forced labor in your operations and global supply chains, you should have a comprehensive and transparent social compliance system in place. The goal of this toolkit is to assist companies that may not have such a system, as well as companies whose existing systems may need strengthening—particularly in the areas of child labor and forced labor.
There are eight steps to an effective social compliance system, as indicated by the illustration on this page. Before exploring these steps, however, it is highly recommended that you familiarize yourself with the basics of a social compliance system.
This toolkit was created by the U.S. Department of Labor's (DOL) Bureau of International Labor Affairs (ILAB). ILAB’s mission is to use all available international channels to improve working conditions, raise living standards, protect workers' ability to exercise their rights, and address the workplace exploitation of children and other vulnerable populations. We have developed this toolkit to help businesses carry out their responsibilities to pursue these same goals, in particular with respect to child labor and forced labor.
ITF Unions Show Support for ILWU in Grain Dispute
International Transport Workers' Federation / www.itfglobal.org
ITF-affiliated unions around the world are showing support for their colleagues in the ILWU (International Longshore and Warehouse Union) in what could be a major labour showdown in the Pacific Northwest of the USA. More
CBP, HSI Announce Fiscal Year 2012 Intellectual Property Rights Seizure Statistics
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/national/01172013_2.xml
Washington— U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) today announced the results of ongoing efforts to protect America from the trade of counterfeit and pirated goods during fiscal year 2012 in the annual Intellectual Property Rights (IPR) Fiscal Year 2012 Seizure Statistics Report.
“In Fiscal Year 2012, CBP protected American consumers from being defrauded and injured by products made with stolen intellectual property,” said CBP Assistant Commissioner for International Trade Al Gina. “In addition to all other aspects of border security, CBP aggressively targets IPR violators to keep these goods from entering the U.S. Our partnership with HSI safeguards our economy and businesses across the U.S.”
“As online commerce continues to expand, we are seeing more international criminal organizations exploiting cyberspace to further their criminal enterprises. Internet websites are increasingly the front end or entry point for consumers, businesses and criminal organizations to the international supply chain” said Lev Kubiak, director of the National Intellectual Property Rights Center. “Attacking criminal activity at every point along the international supply chain, to include websites, manufacturers, shippers and shipping routes, border entry points, distribution networks and payment methods, is critical to CBP and HSI’s enforcement efforts.”
Key IPR enforcement results from FY2012 include:
- The seizure of 22,848 shipments and 697 websites involved in trafficking these goods. The Manufacturer’s Suggested Retail Price (MSRP) for the seized shipments rose to $1.26 billion.
- Operation Chain Reaction, an Intellectual Property Rights Coordination Center (IPR Center) operation designed to prevent counterfeit items from entering U.S. government supply chains. To date, Chain Reaction has led to 24 arrests, 36 indictments, 26 convictions and the seizure of more than $9.83 million in counterfeit electronics, currency and vehicle parts.
- China continues to be the number one source economy for counterfeit and pirated goods seized, accounting for 72 percent, or $906 million, of the total MSRP.
- Handbags and wallets were the top commodity seized. The MSRP for these seizures increased 142.2 percent from fiscal year 2011.
Many counterfeit goods threaten the health and safety of American consumers and our economic and national security. CBP and HSI continued to step up enforcement against these dangerous products, and the resulting seizures help keep consumers safe.
CBP and HSI protect businesses and consumers every day through an aggressive IPR enforcement program. CBP targets and seizes imports of counterfeit and pirated goods, and enforces exclusion orders on patent-infringing and other IPR violative goods.
The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. Working in close coordination with the Department of Justice Task Force on Intellectual Property, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety and the U.S. economy.
CBP Officers at the Pharr International Bridge Seize Over $800K Worth of Heroin
New York Man Arrested
U.S. Customs & Border Protection / www.cbp.gov
Pharr, Texas—Officers with U.S. Customs and Border Protection (CBP) at the Pharr International Bridge seized over $800,000 worth of heroin this past weekend.
The incident occurred on Sunday evening, January 20, after a black 2003 Cadillac Escalade driven by a 26-year-old United States citizen from Bronx, New York arrived at the Pharr-Reynosa International Bridge. The driver presented his U.S. passport and was referred to secondary for further inspection. During the process of inspecting the vehicle officers discovered six packages weighing approximately 3.80 kilograms (8.37 pounds) of alleged heroin which were concealed within the vehicle’s battery. CBP seized the narcotics which have an estimated street value of $837,000 and the vehicle.
The adult male was arrested and released to the custody of Homeland Security Investigations (HSI) agents for further investigation.
“This was another compact but significant seizure of hard narcotics our officers intercepted this weekend,” said Efrain Solis Jr., Port Director, Hidalgo/Pharr/Anzalduas. “This method of smuggling narcotics has become more prevalent within our bridges but our officers have once again foiled another failed attempt.”
Industry Group Begins to Study Portable Electronics Use
U.S. Federal Aviation Administration / www.faa.gov
January 15–Government and industry experts including representatives from the mobile technology and aviation manufacturing industries, pilot and flight attendant groups, and airlines, kicked off their first meeting today to study portable electronic devices (PEDs). The Federal Aviation Administration (FAA) formed the group to examine the current PED policies and procedures aircraft operators use to determine when these devices can be used safely during flight.
Current FAA regulations require an aircraft operator to determine that radio frequency interference from PEDs is not a flight safety risk before the operator authorizes them for use during certain phases of flight.
The group’s goal is to help operators decide if they can allow more widespread use of electronic devices in today’s aircraft and make sure tomorrow’s aircraft designs are protected from interference.
On August 28, the FAA asked for public input on the agency’s current PED policies, guidance and procedures for operators. During the first meeting, the government-industry group will review the public comments provided and use that information to help them examine a variety of issues, including the testing methods aircraft operators use to determine which new technologies passengers can safely use aboard aircraft and when they can use them. The group will also look at the establishment of technological standards associated with the use of PEDs during any phase of flight. The group will not consider the use of cell phones for voice communications during flight because the Federal Communications Commission (FCC) currently prohibits that use through its regulation of the radio spectrum.
The government–industry group, established through an Aviation Rulemaking Committee, will meet for six months and then present its recommendations to the FAA. It includes representatives from the mobile technology and aviation manufacturing industries, pilot and flight attendant groups, airlines, passenger associations, and other government agencies.
CBP Officers Seize Record-breaking 7 Tons of Marijuana
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/local/01232013_2.xml
Nogales, Ariz. — U.S. Customs and Border Protection officers at the local port of entry cargo inspection facility intercepted a shipment of marijuana last week worth up to $12 million.
The seizure occurred after CBP officers selected a 1994 International tractor-trailer, driven by a 26-year-old man from Nogales, Sonora, Mexico, for a thorough inspection. Inside the trailer, CBP officers found 600 bales of marijuana weighing a combined 14,151 pounds. The bales were packaged in boxes manifested as steel containers.
Officers seized the marijuana and conveyance. The driver was turned over to Immigration and Customs Enforcement’s Homeland Security Investigations.
Individuals arrested may be charged by complaint, the method by which a person is charged with criminal activity, which raises no inference of guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
CBP's Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdict ion, enforcing immigration and trade laws, and protecting the nation's food supply and agriculture industry from pests and diseases.