World Bulletin/News Desk
A union representing dockworkers on the U.S. East Coast and an alliance of shippers have reached a labor agreement that will avert a strike that threatened to wreak havoc on the United States' economy.
The International Longshoremen's Association (ILA), which represents 14,500 workers at 15 container ports in the eastern United States, and the U.S. Maritime Alliance (USMX) of shippers, terminal operators and port authorities, have agreed to extend their current contract by 30 days to finalize details, the Federal Mediation and Conciliation Service said in a statement on Friday.
Both sides have agreed "in principle" on the contentious issue of royalty payments for shipping containers, payments to ILA workers based on the tons of container cargo that move through a port.
The statement on Friday was light on details of the actual agreement, and the USMX declined to comment further.
The new contract does not eliminate the royalty payments, according to Benny Holland, an executive vice president for the ILA.
"The royalty will stay intact. We have worked out a formula for it," he said in an interview.
Established in 1960, the royalty payments to ILA workers are based on the tons of container cargo that move through a port. That tonnage has risen from 50 million tons in 1996 to 110 million last year, according to the alliance. Total payments last year were $211 million, according to the USMX, or an average of $15,500 per worker.
The original idea of the royalty payments was to protect longshoremen from wage losses expected as a result of "containerization," in which more and more goods are packed in the now-familiar 20- and 40-foot long boxes. Those take less manpower to off-load than the less-standardized containers they replaced.
Both sides also fought over the guaranteed eight-hour workday in the current contract and the seven-man "lashing gang." Lashing crews, or gangs, secure the cargo containers to the vessel using metal lashing rods to keep them from moving while the vessel is at sea. The maritime alliance wanted to eliminate each.
A long-term agreement has an 80 percent chance of happening by January 28, Capital Alpha Partners analyst Loren Smith said in a research note.
The agreement comes as union forces felt emboldened by recent victories by other unions across the United States. At the same time, shipping companies and port operators have been using more automation, and have seen profits shrink. The Baltic Dry index, which tracks the cost to ship materials overseas, is down 55 percent in the past year and currently at levels it hasn't been in a decade.
Police said the suspect, 25-year-old Alek Minassian, was not known to them before Monday's carnage in Canada's most populous city, which also left 15 people injured.
At least 41 Palestinians were martyred by Israeli gunfire on Gaza border since March 30
Talks are expected to tackle the possibility of U.S. troop withdrawal from war-torn Syria
Plans to roll out an appeals process globally in coming months came as Facebook provided a first-ever look at internal standards used to decide what posts go too far in terms of hateful or threating speech.
John Bolton led Gatestone Institute from 2013 until he took his White House position earlier this month
Attack ‘not part of a wider plot and there is no threat to national security’, says public safety minister
That vote, scheduled to take place at about 5:00 pm (2100 GMT), would not end the nomination, but would put a negative recommendation in the hands of the closely-divided full Senate -- where his approval is not guaranteed.
The company said in a message to customers that the attack was detected on January 14, at a time when the app had 14 million users in the Middle East, North Africa, Pakistan and Turkey, according to the economic news website Arabian Business.
We hope everyone remains fully committed to implementation and long-term preservation, says UN under-secretary-general
Obama, who met with Mandela in 2005 and who made an emotional address at his funeral, will speak at the lecture marking 100 years since the anti-apartheid icon was born.
A total of 41 Gazans have been martyred by Israeli gunfire since March 30
On Thursday, Iraqi F-16 fighter jets struck ISIL positions in Syria
On Thursday, Iraqi F-16 fighter jets struck ISIL locations in neighboring Syria
Turkish Historical Society head cites research from past wars
Palestinian president stresses on 2-state solution to conflict, calls East Jerusalem capital