Americas News
Container Cliff: US Port Strike Called Off
A port strike threatening the U.S. East and Gulf Coasts when the so called "container cliff" talks deadline was set to expire on December 29, 2012, has been adverted after agreement in principal was reached over the key issue of container royalty payments, the U.S. Federal Mediation and Conciliation Service (FMCS) said in a statement today.
As a result, talks have now been extended by 30 days through January 28, 2013.
"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," said FMCS Director George H. Cohen.
Talks between the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) broke down last week over the issue of container royalty payments to ILA workers, and the ILA had told its workers to prepare to strike.
However on December 24, 2012 FMCS said that the ILA and USMX had agreed to meet before the December 29, 2012 talks deadline for a last ditch effort to avoid the strike, revealing today those talks took place on December 27, 2012.
FMCS said that due to its commitment of confidentiality to the parties, it would 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," said Cohen.
"While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period," he added.
Cohen also thanked ILA President Harold Daggett and USMX Chairman & CEO James Capo for avoiding what could have had "economically disruptive nationwide implications."
