(Image Source: Business Insider)

BY JOHN O’CONNOR

Fresh negotiations between port owners and dockworkers have ended the threat of a crippling port strike ... for now. MSNBC explains.

“A federal mediator says that the Longshoremen's union and the group representing port operators and shipping lines have agreed to a thirty day contract extension, narrowly averting the Sunday strike deadline.”  

According to The New York Times, “The partial agreement means that the union, the International Longshoremen’s Association, will not carry out its threat to have 14,500 dockworkers go on strike this Sunday at 14 ports along the East and Gulf Coasts.” 

CNN reports such a strike would cost the U.S. economy more than $1 billion a day in lost export revenues.

“If a strike does take place, shipping costs will rise on a wide variety of consumer goods, and tens of thousands of other workers at railroads, trucking companies and warehouses handling freight from the ports could find themselves out of work.” 

The Washington Post explains item that caused most of the negotiating hold up was between the dock workers and port owners on container royalties. Longshoremen get paid based on the weight of each shipped container, and on average make an additional $15,500 a year from these bonuses. 

A Fox News business analyst explains port owners want to put a cap on those royalties, but the dock workers say it’s unfair.

“This from the Federal mediator in Washington today, ‘The container royalty payment issue has been agreed upon in principle by the parties subject to achieving an overall collective bargaining agreement.”  

The temporary agreement on the existing contract has now extended the new deal deadline until Feb. 6. Dock workers say they will carry out their strike threat at that time if a new, permanent deal can’t be reached.

Port Strike Averted as Partial Deal is Reached

by John O'Connor
0
Sources:CNNFox News
Transcript
Dec 29, 2012

Port Strike Averted as Partial Deal is Reached

 

(Image Source: Business Insider)

BY JOHN O’CONNOR

Fresh negotiations between port owners and dockworkers have ended the threat of a crippling port strike ... for now. MSNBC explains.

“A federal mediator says that the Longshoremen's union and the group representing port operators and shipping lines have agreed to a thirty day contract extension, narrowly averting the Sunday strike deadline.”  

According to The New York Times, “The partial agreement means that the union, the International Longshoremen’s Association, will not carry out its threat to have 14,500 dockworkers go on strike this Sunday at 14 ports along the East and Gulf Coasts.” 

CNN reports such a strike would cost the U.S. economy more than $1 billion a day in lost export revenues.

“If a strike does take place, shipping costs will rise on a wide variety of consumer goods, and tens of thousands of other workers at railroads, trucking companies and warehouses handling freight from the ports could find themselves out of work.” 

The Washington Post explains item that caused most of the negotiating hold up was between the dock workers and port owners on container royalties. Longshoremen get paid based on the weight of each shipped container, and on average make an additional $15,500 a year from these bonuses. 

A Fox News business analyst explains port owners want to put a cap on those royalties, but the dock workers say it’s unfair.

“This from the Federal mediator in Washington today, ‘The container royalty payment issue has been agreed upon in principle by the parties subject to achieving an overall collective bargaining agreement.”  

The temporary agreement on the existing contract has now extended the new deal deadline until Feb. 6. Dock workers say they will carry out their strike threat at that time if a new, permanent deal can’t be reached.

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