Florida Gov. Rick Scott has asked President Barack Obama to prevent a
potentially "devastating" strike by dockworkers at 15 East Coast and Gulf
Coast seaports when their contract expires Saturday.
The longshoremen's union represents more than 14,000 workers handling
containerized cargo at seaports from Massachusetts to Texas, including four in
Florida: Jacksonville, Tampa, Miami and Port Everglades in Fort Lauderdale.
A dockworker's walkout starting Sunday would not affect passenger cruise
ships, U.S. mail, military cargo, perishable cargo or non-containerized cargo
called break bulk, such as cars or steel.
But it could have a major impact on distribution of household items from
clothes to footwear, cleaning supplies to paper and supplies for
manufacturers.
"The predicted effects of a strike on the State of Florida would be
devastating," Scott wrote in a three-page letter to Obama dated Friday.
Scott urged the president to invoke powers under the Taft-Hartley Act to
protect the public from labor disputes that "imperil the national health or
safety." He wants Obama to prevent the union from striking.
The governor will hold a press conference about the looming strike
Thursday morning.
Port Everglades authorities have scheduled a meeting for Thursday at 3
p.m. to address user concerns about a potential strike and address the port's
plan, Port Director Steve Cernak said.
The Port of Miami Terminal Operating Co., which runs the only terminal at
PortMiami not owned by a shipping line, said it will respect a dockworkers
strike and will not handle vessels or open gates during a work stoppage. The
company urged terminal users to try to pick up any sensitive import cargo by
Saturday, a statement said.
The National Retail Federation also has asked Obama to use "all means
necessary" to head off a strike, which they fear could have catastrophic
ripple effects nationwide.
"We foresee this as a national economic emergency, to be honest," said
Jonathan Gold, the group's vice president of supply chain and customs policy.
Billions of dollars worth of commerce at countless businesses nationwide
could be affected, from auto manufacturers awaiting parts to the truckers that
deliver them, the Retail Federation said.
James McNamara, a spokesman for the International Longshoremen's
Association, said the union knows what's at stake for others but must protect
its membership.
"We offer the labor that keeps the commerce moving," McNamara said. "If
management doesn't appreciate or respect the labor that has made them a lot of
money, then we have to do what we have to do."
The longshoremen's union represents roughly 14,500 workers at the 15
seaports, which also include Boston, Delaware River, Baltimore, Hampton Roads,
Va., Wilmington, N.C., Charleston, S.C., Savannah, Ga., Mobile, Ala., New
Orleans and Houston.
The union already agreed to a 90-day extension of their current contract.
On Dec. 18, a federal mediator offered another month-long extension, but talks
broke down over issues including container royalties.
The royalties are payments to union workers based on the weight of
containerized cargo received at each port. They were created in the 1960s to
boost wages and finance worker benefits after rising automation trimmed
salaries and jobs, making it tough for a smaller workforce to fund benefits,
McNamara said.
Shipping companies and port operators, represented by the U.S. Marine
Alliance, want to cap the royalties at 2011 levels, saying they've morphed
into a huge expense that hurts the industry's competitiveness. They estimate
the royalties amount to a bonus averaging $15,500 per year for East Coast
workers who already earn more than $50 per hour.
The union says the payments aren't a bonus, but a supplemental wage. In a
previous contract, management agreed to remove the royalties cap and to use
$42 million of royalties to cover a previous wage increase. Now, the union
can't revive the cap and cut worker income and revenue, McNamara said.
Some seaport executives also are waiting to see whether Obama will act to
stop the walkout.
"Frankly, there's not a lot we can do except than hope that cooler heads
prevail," said Philadelphia port executive Robert Blackburn. "If they don't,
perhaps there will be intervention by the president."
The Associated Press contributed to this report.
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News Column
Strike Looms at Southern, East Coast Seaports
Dec. 27, 2012
Doreen Hemlock, Sun Sentinel
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Source: (c)2012 Sun Sentinel (Fort Lauderdale, Fla.) Distributed by MCT Information Services
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