East and Gulf Coast Port Strike Averted—for Now

Dec. 28, 2012
The International Longshoremen’s Association and United States Maritime Alliance agreed to extend their contract negotiations for an additional 30 days.

George H. Cohen, director of the Federal Mediation and Conciliation Service (FMCS), issued the following statement about the agreement between port labor and management:

“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,” he continued. “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.”

National Retail Federation President and CEO Matthew Shay issued the following statement in response:

“While a contract extension does not provide the level of certainty that retailers and other industries were looking for, it is a much better result than an East and Gulf Coast port strike that would have shut down 14 container ports from Maine to Texas. … We continue to urge both parties to remain at the negotiating table until a long-term contract agreement is finalized.”

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