ILWU COAST NEGOTIATING COMMITTEE’S RESPONSE TO PMA’S PROPOSED MEMORANDUM OF UNDERSTANDING

OCTOBER 7, 2002

I.          WAGES

The Employers claim to be giving us a $1 billion contract.  The facts are they offer $1.00 for basic longshoremen and clerks over five (5) years.  They offer top/side drivers $1.13 over five (5) years.  They offer the hammerhead operators and the 9.43 men $2.26 over the same period.  All these raises are back loaded so that we get the money at the end of the contract.  These monies will not allow us to keep up with inflation.

II.          PENSION

Beginning in the 1960s with the introduction of the Mechanization and Modernization Agreement (M&M), the Employers guaranteed us all the work on the docks.  In 2002, the Employers wants us to sacrifice our jurisdiction, our futures, and the futures of those behind us for the pension increases of $5.00 per year for the next five (5) years.  They only offer this to the active members of the Division.  In previous contracts, everyone who retired under the contract got the entire increase.  In the Employers’ current proposal, you would be frozen at the benefit level in effect at the time you retire.  For example, if you retire under the first year of the contract, your retirement is frozen at $100 for at least the five (5) year-period of the contract.  They completely forgot the people and families that came before us. 

They offer a one-time-only early retirement window of six (6) months from August 1, 2003 through January 31, 2004, but only for members who are at least 59‑1/2 and have 13 qualifying years.  The Union demand offered the ability to retire at age 55 with 13 years with no actuarial reduction.

III.         WELFARE

The Welfare package was tentatively agreed to on September 4, 2002.  It was the Union who did all the work to get this done.  The Employers never showed good faith or even an understanding of the Welfare plan in general.

IV.        PGP

The Employers' proposal limits their contingent liability to the same amount as the last contract but does not take into account the needs for more funding due to a loss of jobs through technology.  The Union asked for an increase from 38 hours to 40 hours paid weekly.

V.        SECTION 17 AND THE ARBITRATION PROCESS

Not only are the Employers telling Coast Arbitrator Sam Kagel that he either retires prior to January 1, 2004 or he will be replaced, but they are also proposing that future Coast Arbitrators be members of the National Academy of Arbitrators instead of coming from the industry.  The Employers' proposal seeks to dismantle the grievance procedure that has served this industry well since 1948.

VI.        FRAMEWORK FOR SPECIAL AGREEMENT ON APPLICATION OF TECHNOLOGIES AND PRESERVATION OF MARINE CLERK JURISDICTION

Marine Clerks put several hundred full time jobs on the table.  In return, the Union asked the Employers to return to their commitment to the ILWU established in the Mechanization & Modernization (M&M) Agreement that all remaining work on the West Coast Waterfront would be under the jurisdiction of the ILWU.  This year, PMA reneged and said no new jobs.  The Employers' proposal on technology does nothing more than give our jobs to foreign countries or right-to-work states.  The Union stepped forward with a proposal to allow the free flow of information in return for what work is left.  The Employers said no.

VII.              CRANE AND SKILLED EQUIPMENT OPERATORS

The Employers tried to split the Division along the lines of skilled men versus basic longshoremen and clerks.

VIII.      WORKFORCE – SHIFT STARTING TIMES

The Employers already have the ability to work these gates and yards 24-hours a day, 7-days a week and are trying to use shift starting times as a way to save money at our expense.

IX.        BREAK BULK

This letter meant nothing in 1999 and will mean nothing in 2002.  Let us remember how much work the CFS letter brought to our Division.  NONE.

X.        SECTION 9 - TRAINING

They say they will train new people but say nothing about training the current workforce for new jobs that may be created. 

THEY LEFT OUT:

·                    Pension increases for retirees and surviving spouses and surviving dependent children

·                    401(k) Employer contribution increases

·                    resolution to abusive controversions

·                    Longshore technology protections

·                    Skill rate increases for all skill jobs

·                    M&R improvements

·                    Holiday

·                    CFS Fund

·                    Vacation

·                    Life Saving Automated External Defibrillators (AEDs)

·                    Port Security

·                    Container Gangs

·                    Seniority Advancement Demand

·                    3‑Year Contract

·                    Industry Travel

·                    Registration

dc/O.P.E.I.U., LOCAL 29 - AFL-CIO