Attachment 6 - ILA CBA.pdf

MASTER CONTRACT

BETWEEN

UNITED STATES MARITIME ALLIANCE, LTD.

(FOR AND ON BEHALF OF MANAGEMENT)

AND

INTERNATIONAL LONGSHOREMEN’S ASSOCIATION, AFL-CIO

(FOR AND ON BEHALF OF ITSELF AND EACH OF ITS AFFILIATED DISTRICTS AND LOCALS

REPRESENTING LONGSHOREMEN, CLERKS, CHECKERS AND MAINTENANCE

EMPLOYEES WORKING ON SHIPS AND TERMINALS

IN PORTS ON THE EAST AND GULF COASTS OF THE UNITED STATES)

EFFECTIVE OCTOBER 1, 2018 FOR THE SIX-YEAR TERM

EXPIRING ON SEPTEMBER 30, 2024

Table of Contents

Preamble

Article I. Scope of Agreement

Section 1. Management Section 2. Recognition Section 3. Complete Labor Agreement Section 4. Local Bargaining

Article II. Wages

Section 1. Wage Increases Section 2. New Employees Section 3. Wage Progression Formula (“Formula”)

Article III. Hours of Work

Section 1. Working Days Section 2. Nights, Weekends, and Holidays Section 3. Meal Hours

Article IV. Local Fringe Benefit Contributions

Section 1. Contributions Section 2. Money Purchase Plan Section 3. Allocation of Contributions Section 4. Limitation on Contributions

Article V. Utilization of Work Force

Section 1. New Employees Section 2. Training Section 3. Flex-Time

(a) Terminals

(b) Ship Operations

Section 4. Gang Size

(a) Longshore Gang

(b) Feeder Barge Gang

(c) Small Boat Gang

Section 5. Staffing

(a) Checker

(b) LTL Staffing

Section 6. Local Bargaining Section 7. Flexibility for Vessel Non-Arrival i

Article VI. Drug and Alcohol Programs

Section 1. Local Plans Section 2. Reinstatement Section 3. Fresh Start After First Offense

Article VII. ILA Jurisdiction Generally

Section 1. Containerization Agreement Section 2. Rules On Containers Section 3. Maine to Texas Section 4. Jurisdiction Committee

(a) Fact Finding

(b) Labor Adjustor System

(c) Jurisdiction Committee Decisions

Section 5. Supervision and Management Section 6. Reefer Containers Section 7. Port Authorities Section 8. Marine Terminal Work Section 9. Work Opportunities Section 10. Space Charters Section 11. Commencement of Jurisdiction Section 12. Scope of Article Section 13. Customs and Border Protection

Article VIII. ILA Jurisdiction Over Clerical Work

Section 1. Clerical Work Section 2. Guidelines

(a) Framework

(b) Statement of Principle

(c) No Waiver

Section 3. Glossary of Terms

(i) Receiving and Delivery

(ii) Hatchchecking

(iii) Prestow & Plan Clerking

(iv) Timekeeping

(v) Location and Yard Work

(vi) Demurrage Recording

Article IX. ILA Jurisdiction Over Maintenance and Repair Work

Section 1. Maintenance and Repair Work Section 2. Major Damaged Equipment ii

Section 3. Determination Procedure Section 4. Grievance and Audit Section 5. Port of Discovery (POD) Section 6. Warranties

Article X. Preservation of Chassis Maintenance-And-Repair Work

Section 1. Preamble Section 2. Chassis Pools Section 3. Sale or Transfer of Chassis Section 4. Inspection and Maintenance of Chassis Section 5. Roadability

Article XI. New Technology Implementation and Workforce Protection

Section 1. Guiding Principles Section 2. New Technology Committee Section 3. Workforce Protection Guidelines Section 4. Procedure

Article XII. Container Royalties

Section 1. First and Third Container Royalties Section 2. Second Container Royalty Section 3. Container Royalty Distribution Section 4. Container Royalty Central Collection Fund Section 5. Carrier-ILA Container Royalty Fund No. 4 Section 6. Carrier-ILA Container Royalty Fund No. 5 Section 7. Carrier-ILA Container Freight Station Trust Fund

(a) Preamble

(b) CFS Subsidy & Training Program

Section 8. Caribbean Basin Initiative Agreement

Article XIII. MILA

Section 1. Management-ILA Managed Health Care Trust Fund Section 2. Funding

(a) Fourth Container Royalty Assessment

(b) Second Container Royalty Assessment

(c) Hourly Contributions

Section 3. Second Container Royalty Contributions iii

Article XIV. Grievance Procedure

Section 1. Local Level Section 2. Appellate Level Section 3. Appeals From a Decision of the LIGC Section 4. Appeals Form Section 5. Industry Appellate Committee (IAC)

(a) Number of IAC Members

(b) Co-Chairmen

(c) Telephonic Notice

(d) Quorum

(e) Majority Vote

(f) Multi-Port Charges

(g) Failure To Appear

Section 6. Arbitration

(a) Panel of Arbitrators

(b) Selection of Arbitrator From Panel

(c) Selection System

(d) Expedited Arbitration

(e) Failure to Appear

(f) Award

(g) Right to Strike

Section 7. Industry Resource Committee Section 8. Disputes Among Fund Trustees

Article XV. Accommodations

Section 1. Existing Accommodations Section 2. Future Accommodations

Article XVI. No-Strike Clause

Section 1. No Strikes or Lockouts Section 2. Bona Fide Picket Line

Article XVII. Term of Agreement

Article XVIII. Subscription and Signatories

Section 1. Refusal to Work Section 2. Non-Subscribers Section 3. Fringe-Benefit Assessment iv

Article XIX. Miscellaneous

Section 1. Headings Section 2. Severability Section 3. Ratification Section 4. Amendments Section 5. Joint Contract Implementation Team Section 6. Data Collection Section 7. Existing Terms and Conditions

Appendix A. Containerization Agreement

Appendix B. Management-ILA Rules On Containers (As amended by Agreement of May 27, 1980)

Appendix C. Major Damage Criteria For Containers And Chassis

Appendix D. Stein Award

Appendix E. Caribbean Basin Initiative Agreement

Notes v vi

PREAMBLE

THIS COLLECTIVE BARGAINING AGREEMENT entered into on this 25th day of

September, 2018 between the UNITED STATES MARITIME ALLIANCE, LTD. (“USMX”) for and on behalf of its members and any stevedores, marine terminal operators, and carriers that hereafter become members of USMX or that hereafter subscribe to this Agreement (hereinafter sometimes collectively referred to as “Management”) and the INTERNATIONAL

LONGSHOREMEN’S ASSOCIATION, AFL-CIO (“ILA”) for and on behalf of itself and each of its affiliated districts and locals representing longshoremen, clerks, checkers, and maintenance employees working on ships and terminals in ports on the East and Gulf Coasts of the United States constitutes the Master Contract establishing the terms and conditions of employment for longshoremen, clerks, checkers, and maintenance employees employed in container and roll-on/roll-off (“ro-ro”) operations at ports on the East and Gulf Coasts of the United States.

ARTICLE I

SCOPE OF AGREEMENT

Section 1. Management.

The multiemployer Management group bound to the Master Contract consists of the carriers, stevedores, marine terminal operators, and port associations that are members of USMX; the carriers, stevedores, and marine terminal operators that are members of the port associations that are members of USMX; and the carriers, stevedores, and marine terminal operators that hereafter become members of USMX or hereafter subscribe to this Master Contract as well as those carriers and other employers bound hereto by operation of law.

Section 2. Recognition.

Management recognizes the ILA as the exclusive bargaining representative of longshoremen, clerks, checkers, and maintenance employees who are employed on ships and terminals in all ports on the East and Gulf Coasts of the United States, inclusive from Maine to Texas, and the ILA recognizes USMX as the exclusive employer representative in such ports on Master Contract issues.

Section 3. Complete Labor Agreement.

This Master Contract is a full and complete agreement on all Master Contract issues relating to the employment of longshore employees on container and ro-ro vessels and container and ro-ro terminals in all ports from Maine to Texas at which ships of USMX carriers and carriers that are subscribers to this Master Contract may call. This Master Contract as supplemented by local bargaining constitutes a complete and operative labor agreement.

Section 4. Local Bargaining.

The port associations which are bound by this Master Contract will engage in local negotiations on those bargaining subjects left open to local negotiations by USMX and the ILA.

Local agreements must be consistent with and will supplement the terms and conditions of the

Master Contract in the local ports covered by this Master Contract.

ARTICLE II

WAGES

Section 1. Wage Increases.

(a) Effective October 1, 2019, employees who were employed as of September 30, 2019, and who are receiving a straight-time basic wage rate of $35.00 per hour as of September 30, 2019, shall receive an increase of $1.00 per hour in their straight-time basic wage rate.

(b) Effective October 1, 2021, employees who were employed as of September 30, 2021, and who are receiving a straight-time basic wage rate of $36.00 per hour as of September 30, 2021, shall receive an increase of $1.00 per hour in their straight-time basic wage rate.

(c) Effective October 1, 2022, employees who were employed as of September 30, 2022, and who are receiving a straight-time basic wage rate of $37.00 per hour as of September 30, 2022, shall receive an increase of $1.00 per hour in their straight-time basic wage rate.

(d) Effective October 1, 2023, employees who were employed as of September 30, 2023, and who are receiving a straight-time basic wage rate of $38.00 per hour as of September 30, 2023, shall receive an increase of $1.00 per hour in their straight-time basic wage rate.

(e) In the South Atlantic and Gulf ports, one of the above wage dollar increases may be converted to a fringe benefit hourly contribution at a rate that includes not only the $1.00 wage rate but also all payroll taxes applicable to that $1.00 wage rate based on calculations agreed to by

USMX and the ILA.

Section 2. New Employees.

The starting straight-time basic wage rate for new employees who enter the industry on or after October 1, 2018, shall be $20.00 per hour. New employees shall include any former employee who did not work at least one (1) hour under the prior Master Contract during the period from

October 1, 2004, through and including September 30, 2018. New employees hired during the term of this Master Contract shall be entitled to receive the increases set forth in Article II, Section 3 of this Master Contract that go into effect after the date of their hire.

Section 3. Wage Progression Formula (“Formula”)

(a) Effective October 1, 2018, all employees who are receiving a straight-time basic wage rate on September 30 of the prior Contract Year that is less than the highest straight-time basic wage rate will receive an increase in their straight-time basic wage rates in accordance with the following Formula:

(i) On their second (2nd) Industry Employment Anniversary Date, twenty-five percent (25%) of the difference between the highest straight-time basic wage rate and the employee’s straight-time basic wage rate on September 30 of the prior Contract Year;

(ii) On their fourth (4th) Industry Employment Anniversary Date, fifty percent (50%) of the difference between the highest straight-time basic wage rate and the employee’s straight-time basic wage rate in effect on September 30 of the prior Contract Year; and

(iii) On the sixth (6th) Industry Employment Anniversary Date, one hundred percent (100%) of the difference between the highest straight-time basic wage rate and the employee’s straight-time basic wage rate in effect on September 30 of the prior Contract Year.

(b) The following definitions shall apply to the Formula:

(i) An employee’s Industry Employment Anniversary Date will be based upon the number of Qualified Anniversary Years with which the employee has been credited as of September 30 of the prior Contract Year.

(ii) A Qualified Anniversary Year for all Contract Years prior to October 1, 2009, is one in which the employee is credited with at least one (1) hour of service. A Qualified Anniversary Year for all Contract Years after September 30, 2009, is one in which the employee is credited with at least 700 hours of service.

(iii) When applying the Formula, the highest straight-time basic wage rate shall be the rate in effect on the date the Formula is applied.

(iv) If any employee did not work at least one (1) hour under the Master Contract during the period from October 1, 2000, through and including September 30, 2004, that employee shall not receive any Qualified Anniversary Years for any years prior to the Contract Year ending September 30, 2005.

(c) USMX and the ILA agree that the application of the Formula will result in the following base wage rates in each year of this Master Contract.

Contract Years 10/01/18 10/01/19 10/01/20 10/01/21 10/01/22 10/01/23 09/30/19 09/30/20 09/30/21 09/30/22 09/30/23 09/30/24

* Wage Increase of $1.00 only for Highest Rate * * * *

If the employee has the following Qualified Anniversary Years of Service on October 1 of the Contract Years set forth above, the Employee’s straight-time basic wage rate for each Contract Year of this Master Contract will be:

0 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00

1 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00

2 $23.75 $24.00 $24.00 $24.25 $24.50 $24.75

3 $23.75 $24.00 $24.00 $24.25 $24.50 $24.75

4 $29.40 $30.00 $30.00 $30.60 $31.25 $31.90

5 $29.40 $30.00 $30.00 $30.60 $31.25 $31.90

6 or More $35.00 $36.00 $36.00 $37.00 $38.00 $39.00

(d) If an employee’s straight-time basic wage rate is higher than what the employee is entitled to receive based on the Qualified Anniversary Years of service on October 1 of a Contract

Year, the employee’s straight-time basic wage rate will stay at the higher level until the employee is entitled to move to the next level, based on the employee’s Qualified Anniversary Years of service.

(e) The Formula shall continue in full force and effect in extensions of this Master

Contract and subsequent Master Contracts. On October 1, 2018, and on each October 1 thereafter while the Formula remains in effect, employees shall be entitled to receive an increase in their straight-time basic wage rate pursuant to the Formula payable on that date.

ARTICLE III

HOURS OF WORK

Section 1. Working Days.

The regular or normal working day shall consist of eight (8) hours from 8:00 A.M. to 12:00

Noon and from 1:00 P.M. to 5:00 P.M., and the regular or normal working week shall consist of forty (40) hours made up of five (5) regular or normal working days from Monday to Friday, inclusive.

Section 2. Nights, Weekends, and Holidays.

Employees covered by this Master Contract when required by Management shall work

Saturdays, Sundays, and legal holidays and any night during the entire seven (7) day week.

Section 3. Meal Hours.

Meal hours shall be from 6:00 A.M. to 7:00 A.M., from 12:00 Noon to 1:00 P.M., from 6:00

P.M. to 7:00 P.M., and from 12:00 Midnight to 1:00 A.M. or as otherwise provided in the local agreement. Work shall be performed during meal hours on arrival or sailing days to complete discharging or loading a hatch, or by mutual agreement of the local ILA and port association in the ports or districts covered by this Master Contract.

ARTICLE IV

LOCAL FRINGE BENEFIT CONTRIBUTIONS

Section 1. Contributions.

Effective October 1, 2018, contributions for local pension, welfare, and other employee fringe benefits shall be $14.00 per hour, of which $5.00 shall be paid to the Management-ILA

Managed Health Care Trust Fund (MILA).

Section 2. Money Purchase Plan

The ILA and USMX shall create a coastwise money purchase plan for qualified employees who are working hours under the Master Contract in ports that do not have local money purchase plans. The coastwise money purchase plan will be centrally managed. Qualification thresholds and disbursements for the coastwise plan shall be agreed upon by USMX and the ILA. Where a local money purchase plan exists, the money purchase plan contributions prescribed in this section will be transferred to the local money purchase plan. In any port one of the two hourly contributions set forth in subsections (a) and (b) of this section may be converted into an additional hourly contribution for local fringe benefit purposes as set forth in Article IV, Section 1 of this Master

Contract provided the conversion is agreed to by all of the ILA locals covered by the Master

Contract in the port as well as by the labor and management trustees in that port. The money purchase plan contributions shall be as follows:

(a) Effective October 1, 2018, qualified employees shall receive a $1.00 per hour contribution; and

(b) Effective October 1, 2020, qualified employees shall receive an additional $1.00 per hour contribution.

Section 3. Allocation of Contributions.

The contributions set forth in Article IV, Section 1 of this Master Contract may be allocated to fund not only pension and welfare benefits but also any other fringe benefits as agreed to by the local ILA and port association in each of the ports or districts covered by this Master Contract, except that $5.00 per hour worked in each port or district shall be paid to MILA.

Section 4. Limitation On Contributions.

No hourly contributions other than those set forth in Article IV, Sections 1 and 2 of this

Master Contract shall be imposed in any port or district except existing contributions in effect on

September 30, 2018, which may not be increased during the term of this Master Contract.

No tonnage assessment (not in effect on the effective date of this Master Contract) shall be imposed on containerization or ro-ro operations by any local ILA or port association in any port or district covered by this Master Contract during the life of this Master Contract.

ARTICLE V

UTILIZATION OF WORK FORCE

Section 1. New Employees.

(a) New employees shall be required to pass a mandatory physical examination and a drug test as established by Management and the ILA after they are offered employment and before they engage in any services.

(b) New employees shall also be required to pass ability and proficiency tests approved by Management and the ILA and shall also be required to be recertified every three (3) years in the case of equipment operators, clerical employees, and maintenance employees.

Section 2. Training.

Employees who operate or otherwise handle, or are selected to operate or otherwise handle, wheeled equipment, cranes, or other moving equipment or who perform maintenance or clerical work shall receive such training as may be required from time-to-time by Management and shall be subject to such recertification requirements as shall be established by Management and the ILA, including a physical examination designed by Management and the ILA to demonstrate the employee’s ability to perform the essential functions of the employee’s job.

Section 3. Flex-Time.

(a) Terminals. Each local port or district must institute a flex-time system at waterfront terminals for the receiving and delivery of containers and chassis and for work associated with these functions with the details of flex-time to be worked out on a local basis in accordance with the following basic principles:

(i) For all hours worked before 8:00 A.M. and after 5:00 P.M., the wage rate shall be 1 and ¹/₄ times the straight-time basic hourly rate except on Saturdays, Sundays and holidays, when the wage rate of 1 and ¹/₂ times the straight-time basic hourly rate shall apply.

(ii) The minimum hourly guarantees shall begin at the time the employees begin work.

(iii) After eight (8) hours worked in any day, the overtime rate of 1 and ¹/₂ times the straight-time basic hourly rate shall apply.

(iv) Starting times and meal hours are local issues.

(b) Ship Operations. Any port or district may implement a ship or barge operation flex-time system which shall provide for flexible starting times and shift operations. The minimum hourly guarantees shall begin at the time the employees begin work. Starting times and meal hours are local issues.

Section 4. Gang Size.

(a) Longshore Gang. A two-employee reduction in the total operation of the longshore gang for container and ro-ro ships went into effect on October 1, 1996, and an additional one-employee reduction went into effect on October 1, 1998. These reductions had to be made from other than drivers and/or crane operators. These reductions shall remain in effect during the term of this Master Contract.

(b) Feeder Barge Gang. The same reductions in the minimum gang size set forth in

Article V, Section 4(a) of this Master Contract went into effect for a feeder barge gang under the

Feeder Barge Agreement, which is limited to barges with a capacity of up to 350 containers. These reductions shall remain in effect during the term of this Master Contract.

(c) Small Boat Gang. The same reductions in the gang size set forth in Article V, Section 4(a) of this Master Contract went into effect under the Small Boat Agreement, which is limited to ships with a capacity of up to 500 TEUs. These reductions shall remain in effect during the term of this Master Contract.

Section 5. Staffing.

(a) Checker. One (1) checker shall be assigned to a longshore gang.

(b) LTL Staffing. The minimum stuffing and stripping gang for loading and unloading containers shall consist of one (1) longshoreman and one (1) checker, who shall work as directed on one or more containers or trucks simultaneously.

Section 6. Local Bargaining.

Subject to the provisions of Article V of this Master Contract, manning, staffing, and the number and use of employees in all crafts shall be the subjects of local bargaining for the purposes of improving port productivity.

Section 7. Flexibility for Vessel Non-Arrival

(a) Each local port or district must institute a set-back/cancellation policy at waterfront facilities within two hours of the vessel start time.

(b) The policy must conform with the following criteria:

i. There must be no additional start times;

ii. There shall be no reduction in manning or equipment;

iii. The policy must address punitive set-back times as well as firm and non-cancellable set-back times;

iv. The policy must address and confirm any local policies; and

v. The policy must allow set-backs up to two times.

ARTICLE VI

DRUG AND ALCOHOL PROGRAMS

Section 1. Local Plans.

The drug and alcohol program now in effect in each port and district should include the following provisions:

(a) Every test shall allow for the splitting of the sample. In a positive test the employee would have the right to request a retest done at another approved laboratory.

(b) The cost of performing drug and alcohol tests will be paid by the employer or the local employer port association.

(c) Every plan must have mandatory random testing of all crafts, except in the Port of New York and New Jersey where its random-testing program will be held in abeyance so long as the Master Contract workforce in the Port of New York and New Jersey is subject to additional testing by private governmental agencies that are not parties to the Master Contract. The terms and conditions of the random-testing program in each port or district will be determined by the local parties pursuant to applicable law.

Section 2. Reinstatement.

The drug and alcohol program now in effect in each port and district shall continue in effect during the term of this Master Contract. The parties recognize that each port has a drug and alcohol policy which provides that an employee who is found in possession of, use of, or other dealings in narcotics, alcohol or other prohibited substances (other than drugs which have been prescribed by a licensed physician, and only while working under the conditions permitted by the employer) while in the course of his employment under the terms of any collective bargaining agreement between the ILA and Management shall be immediately suspended from employment for a period of sixty (60) days and, furthermore, that any second offense shall result in termination from employment subject to the following rules. In those circumstances where an employee has been terminated from the industry in accordance with any such program and has remained drug-free for one (1) year, such individual will be eligible for a third and final chance for reinstatement in the industry subject to the following terms and conditions which must be determined locally:

(a) The former employee must provide proof of successful completion of a rehabilitation program resulting in the individual being drug-free for the last twelve (12) months prior to application for reinstatement.

(b) Reasonable criteria in each port or district shall be established under which the individual shall prove the individual’s drug-free status, including periodic testing.

(c) Application for reinstatement after the second offense must be made within sixty (60) days from the date of termination.

(d) Once reinstated, the individual will be subject to random testing, and any further violation shall ban the employee for life.

Section 3. Fresh Start After First Offense.

If after a first offense, the employee remains drug-free for a period of three (3) years from the date of the first offense, the employee shall be entitled to the rescission of the first offense for the purposes of applying the reinstatement provisions set forth in Section 2 of Article VI of this

Master Contract. If the employee commits a second offense before the employee has remained drug-free for three (3) years after the first offense, the employee is not entitled to have the first offense rescinded. An employee is entitled to only one (1) rescission.

ARTICLE VII

ILA JURISDICTION GENERALLY

Section 1. Containerization Agreement.

(a) Management hereby reaffirms that employees covered by this Master Contract have jurisdiction over longshore, checker, maintenance, and other craft work conferred on such workers by the Containerization Agreement, a copy of which is appended to this Master Contract as

Appendix A.

(b) The carriers and marine terminal operators that are parties to this Master Contract shall not contract out to any affiliate, subsidiary, or other entity in which they have an interest any

Master Contract work that has historically and regularly been performed by employees covered by the Master Contract at waterfront piers and terminals or at off-pier facilities within port areas covered by the Master Contract, unless the affiliate, subsidiary, or other entity employs workers covered by the Master Contract to perform the work.

Section 2. Rules On Containers.

The Rules On Containers that were in effect on September 30, 2004, a copy of which is appended to this Master Contract as Appendix B, shall remain in effect during the term of this

Master Contract.

Section 3. Maine to Texas.

The ILA’s Master Contract jurisdiction continues on a multi-port bargaining-unit basis covering all ports from Maine to Texas at which ships of USMX carriers and subscribers may call.

Section 4. Jurisdiction Committee.

(a) Fact Finding. The Jurisdiction Committee will visit every port that raises an issue concerning any violation of the Master Contract’s jurisdiction provisions. The Jurisdiction

Committee will render a report within thirty (30) days of each visit. The Jurisdiction Committee can use an independent third party to perform fact-finding, whenever the Committee agrees that such action is necessary.

(b) Labor Adjustor System. After October 1, 2018, Management and the ILA will set up a labor adjustor system to hear and resolve Master Contract jurisdictional disputes within thirty

(30) days of the dispute being presented. Part of this system will permit the labor adjustors, on an as-needed basis, to use an independent third party to perform fact-finding, whenever the labor adjustors agree that such action is necessary.

(c) Jurisdiction Committee Decisions.

(i) Decisions of the Jurisdiction Committee are to be implemented in accordance with the time schedule set forth in the Jurisdiction Committee’s decision. The Jurisdiction Committee shall have the power to award actual damages incurred as a result of any violation of the jurisdictional provisions of the Master Contract.

Decisions of the Jurisdiction Committee shall constitute final and binding arbitration awards, and the parties agree to waive the right to seek judicial review. In addition, the parties shall establish a procedure to resolve a deadlock of the Jurisdiction Committee by selecting in advance a panel of mutually acceptable arbitrators and use the next available arbitrator to resolve the deadlock on a set time schedule. The parties agree that the arbitrator’s award is final and binding.

(ii) The failure to comply with the final and binding decision and award of the Jurisdiction Committee or the deadlock-breaking arbitrator shall constitute a breach of this Master Contract, and the ILA reserves the right to take whatever legal action may be appropriate in the circumstances, including, but not limited to, the refusal to provide labor to the offending carrier, marine terminal operator, or stevedoring company. This refusal to supply labor shall not constitute a violation of the No-Strike Clause of the Master Contract or any local longshore collective bargaining agreement.

(iii) Anyone failing to comply with an outstanding award of the Jurisdiction Committee or the deadlock-breaking arbitrator shall be liable for liquidated damages in the amount of $10,000 per day for each day that the offending local union, carrier, marine terminal operator, or stevedoring company fails to comply with the schedule set forth in the award. In the event the losing party commences an action in federal court to vacate an award issued by the deadlock-breaking arbitrator, the ILA shall not have the right to refuse to provide labor so long as liquidated damages are paid for failure to comply with the deadlock-breaking arbitrator’s award.

Actual damages payable by an offending carrier, marine terminal operator, or stevedoring company shall be paid to the aggrieved workers or the Fringe Benefit Fund in the port as determined by the Jurisdiction Committee or the arbitrator. Liquidated damages shall be paid to the Fringe Benefit Fund in the port. Actual damages and liquidated damages payable by a local union shall be paid to the aggrieved Management party.

(iv) In the event that USMX or the ILA shall institute suit to confirm and enforce an award under this section, they shall be entitled to recover prejudgment interest, costs, reasonable attorneys’ fees, and other expenses incurred in the litigation.

(v) The losing party shall have the right to commence an action in federal court to vacate an award issued by the deadlock-breaking arbitrator. The limitations period for this action shall be 60 days from the date of the award.

The losing party must comply with the award notwithstanding the pendency of any federal court action. Any actual damages awarded by the arbitrator and any liquidated damages for failure to comply must be paid in escrow to the co-chairmen of the Jurisdiction Committee pending the final disposition of the federal court action. If it does not prevail in the federal court action, the losing party shall pay reasonable attorneys’ fees to the opposing party.

Section 5. Supervision and Management.

The ILA work described in the jurisdiction provisions of this Master Contract is to be performed by ILA-represented workers on the waterfront facility and not by supervision or other non-bargaining unit employees.

Section 6. Reefer Containers.

Except where other unions now have jurisdiction, the work of plugging and unplugging reefer containers aboard vessels is not to be performed by other outside persons, such as ship’s crew, provided that agreement can be reached regarding minimal manning and agreed hours of the ILA labor.

Section 7. Port Authorities.

(a) USMX and the ILA shall conduct a study to determine how the business model currently used by port authorities in the Ports of Charleston, SC, Savannah, GA, and Wilmington, NC, could be altered to permit work currently performed by state employees to be performed by

Master Contract-bargaining-unit employees in a more productive, efficient, and competitive fashion.

USMX and the ILA will use this study to meet with these port authorities in an effort to convince them to employ Master Contract-bargaining-unit employees.

(b) USMX agrees to formally notify any port authority contemplating the development of or intending to develop a new container handling facility that USMX members may be prohibited from using that new facility if the work at that facility is not performed by Master Contract bargaining-unit employees.

Section 8. Marine Terminal Work.

(a) It is recognized that the marine terminal work of the ILA crafts has traditionally been performed on piers and waterfront facilities. When such marine terminal work is moved off the marine terminal by the terminal operator or by a signatory carrier to facilities in the port area, the ILA shall retain its work jurisdiction where the work is the work that would have been performed in the marine terminal or port area.

(b) If technology permits work performed under this Master Contract to be performed at a facility other than the existing facility or if marine terminal work that has historically and traditionally been performed under the Master Contract at an existing facility is moved to a facility other than the existing facility, the terminal operator or signatory carrier will be required to move that work to a facility in the port area, where the work will be performed by the ILA workforce.

The terminal operator or signatory carrier is required to notify the ILA of its intention to remove work to another facility.

(c) The term “Port Area” in this Master Contract means the historic definition of what is considered the port area in each port covered by the Master Contract.

Section 9. Work Opportunities.

The parties agree that any chance of reacquiring the work of stuffing and stripping containers requires a dedicated work force of trained, productive workers hired at compensation commensurate with the local competition and without any restrictive rules. The parties should examine into this subject and all of its conditions.

Section 10. Space Charters.

The ILA has the same jurisdiction over a signatory’s space-chartered vessel as it has over any vessel operated by a USMX member or by a signatory to this Master Contract. Vessels and containers owned or leased by USMX members or by signatories to this Master Contract shall be subject to ILA jurisdiction in each and every port where their vessels may call from Maine to Texas not only on signatory ships but also on nonsignatory ships on which their containers may be carried.

Containers of nonsignatory carriers carried on signatory ships also shall be subject to ILA jurisdiction.

Section 11. Commencement of Jurisdiction.

Management reaffirms the ILA’s jurisdiction as set forth in Articles VII, VIII, and IX of this

Master Contract and in particular that such jurisdiction applies from the point at which the container/cargo comes within the control of Master Contract-bargaining-unit members. If necessary, issues arising over interpretation of these articles will be adjudicated by the Jurisdiction Committee.

Section 12. Scope of Article.

The general jurisdiction provisions contained in this Article VII of the Master Contract apply to all three crafts: longshore, checker-and-clerk, and maintenance employees.

Section 13. Customs and Border Protection.

The parties agree that it is important to redouble industry efforts to regain the customs examination work recently outsourced to non-USMX-ILA contractors. The parties agree to commission Ron Signorino to write a white paper on how this might be accomplished. It is also agreed that once the white paper is completed, USMX and the ILA will jointly approach the

Customs and Border Protection agency.

ARTICLE VIII

ILA JURISDICTION OVER CLERICAL WORK

Section 1. Clerical Work.

Clerks shall perform all clerical work on container waterfront facilities which traditionally and regularly has been performed by them, including, but not limited to, work related to the receipt and delivery of cargo, hatchchecking, prestow, hatch sequence sheet, plan clerking, recording of receipt and delivery of containers received or delivered at waterfront facilities, timekeeping, location and yard work, and demurrage recording, which work shall not be removed from the waterfront facility. The input and output of information by computers related to the foregoing work functions shall also be performed by Checkers and Clerks.

Section 2. Guidelines.

(a) Framework. The members of the Jurisdiction Committee, in order to provide a framework to resolve outstanding issues regarding the jurisdiction of the ILA Clerks and Checkers, have agreed upon the following definitions and the statement of principle that will be used to define and identify the specific functions that fall within the ILA’s jurisdiction.

(b) Statement of Principle. In applying Article VIII, Section 1 of the Master Contract, members of the Jurisdiction Committee shall be bound by the following principle: Management and the ILA agree that the ILA Clerks and Checkers shall have jurisdiction over each and every function set forth in Article VIII, Section 1 of this Master Contract which is performed on container waterfront facilities on behalf of signatory employers in each and every port covered by the Master

Contract, provided that such function was at any time in the past performed by the ILA Clerks and

Checkers in that port. It is further understood that clerical work currently performed by state port authorities or government agencies, if discontinued, will fall under the ILA’s jurisdiction.

(c) No Waiver. Unless there is agreement between the ILA in a local port and an employer in the local port, any deviation from the jurisdiction provisions of the Master Contract shall not constitute a waiver, amendment, or rescission of the jurisdiction provisions of the Master

Contract.

Section 3. Glossary of Terms.

The following basic list of terms are intended to be descriptive and not all encompassing and are not intended to limit the jurisdiction or functions of the ILA Clerks and Checkers as they exist under local agreements in the various ports covered by the Master Contract:

(i) Receiving and Delivery of cargo shall mean checking and/or clerking of all cargo received into and/or out of a container terminal operated and controlled by a USMX-member company. The input and output of information related to change of status (e.g., change of vessel, change of discharge port, etc.) once the container is received at the waterfront facility shall also be performed by the Checkers and Clerks. Management and the ILA agree that they will develop a methodology to confirm who is performing computer input work that falls within the ILA’s jurisdiction. Both Management and the ILA agree that the methodology will vary from one terminal to another because of the different computer systems utilized in various ports and terminals. Both the ILA and Management are committed to fully implementing this Article VIII of the Master Contract during its term.

(ii) Hatchchecking shall mean the checking, tallying, verification, and recording of all containers and/or cargo loaded, discharged, or restowed to or from a vessel or barge at a container terminal operated and controlled by a USMX-member company.

(iii) Prestow & Plan Clerking shall mean the making of sequence sheets and/or the making of a prestow plan that would be used in loading and discharging vessels and barges in accordance with Management’s instructions. Such work shall include, but not be limited to, all work relating to the bay plan. The use of a computer in the performance of the above function falls within the ILA’s jurisdiction.

(iv) Timekeeping shall mean the timekeeper’s duties and functions, which shall include, at the discretion of Management, but not be limited to, keeping longshore time and the preparation of time sheets and payroll information. If a computer is used to perform this function, this will fall under the ILA’s jurisdiction.

(v) Location and Yard Work shall mean the identification, location and control of all containers, chassis, and/or cargo to be loaded, discharged, or restowed to or from the vessel or barge. Necessary paperwork and computer utilization required to perform these clerical functions, as required by Management’s direction and planning, shall fall within the ILA’s jurisdiction.

(vi) Demurrage Recording shall mean the preparation, computation, and checking of container-demurrage receipts.

ARTICLE IX

ILA JURISDICTION OVER MAINTENANCE AND REPAIR WORK

Section 1. Maintenance and Repair Work.

It is agreed that the jurisdiction of the ILA shall cover the maintenance and repair of equipment (which term includes containers and chassis) and such equipment as its members have historically maintained and which is owned, controlled, operated, or interchanged by USMX members including, but not limited to, (a) container cranes, (b) container-handling equipment, and

(c) container cranes and container-handling equipment which are acquired for new deep-sea terminal facilities. The ILA’s jurisdiction remains in effect at waterfront container facilities and/or off-pier premises used for servicing and repairing equipment covered by this Master Contract in accordance with the Containerization Agreement. Further, all said equipment, be it owned, leased, or controlled by USMX members and/or signatories to the Master Contact, once it is presented at waterfront facilities, shall be covered by this Master Contract. Furthermore, it is recognized that the marine-terminal work of all ILA crafts has been traditionally performed on piers and waterfront facilities.

When such marine-terminal work is moved off the marine terminal by the terminal operator or by a signatory carrier to facilities in the port area, the ILA shall retain its work jurisdiction, where the work is the work that would have been performed in the marine terminal or port area.

Section 2. Major Damaged Equipment.

Major damaged equipment must be repaired in the port where the major-damage is discovered, provided, however, that where a carrier needs to reposition empties or where it is otherwise necessary to its operations, a carrier shall notify the ILA maintenance local of the repositioning and the equipment numbers of the major-damaged equipment. Thereafter, it shall also report the time, place and nature of the repairs performed by ILA labor in an ILA port on such damaged equipment. Such notification shall be subject to the audit procedure. In fulfilling the above objectives, it is agreed that:

(a) No damaged equipment shall be loaded aboard ship for export except under the procedures provided below.

(b) No employer or carrier shall permit damaged equipment to leave the compound, except under the procedures provided herein.

(c) The employers and carriers shall not enter into any leasing agreement that circumvents the work jurisdiction of the ILA covered under this Master Contract.

Section 3. Determination Procedure.

(a) An ILA/Carrier Master Contract Committee has established amended criteria, which are appended to this Master Contract as Appendix C, for a container with major damage in accordance with uniform criteria which relate to safety, structural soundness, roadability, and seaworthiness of the various types of containers. These criteria shall be distributed to the ILA maintenance employees in the inspection (or roadability) lanes at each container terminal.

(b) In accordance with the criteria established in subparagraph (a) of Article IX, Section

3 of this Master Contract, ILA employees may designate a container or chassis which they examine and find damaged (as defined in such subparagraph (a) criteria) as out of service on a T.I.R. form and such container shall be placed in a deadline status in accordance with the procedures of the terminal involved.

(c) The carrier shall be notified of such designation as soon as possible and shall have the right to determine that such container or chassis shall either be repaired (in an ILA port of its choosing) or if it disagrees with the ILA determination that such container was damaged within the subparagraph (a) criteria, the container in question shall be placed back into service or repositioned as an empty.

Section 4. Grievance and Audit.

The ILA shall have the right to be informed of the action so taken and to grieve the matter, if it so desires, under the terms and conditions of the grievance procedures agreed to by the parties in this Master Contract. If it is determined under such grievance procedure that the container in question should have been repaired, the carrier shall pay liquidated damages of $1,000 per container

($2,000 per container for willful violations), as ruled in such determination. Fact-finding and audit under the grievance procedure shall be provided by an independent auditor selected by the parties who shall have the right to audit all applicable documentation of a carrier to determine compliance with this Master Contract. Such audit shall be available to the grievance procedure and may be used to establish compliance or the lack thereof.

Section 5. Port of Discovery (POD).

(a) It is necessary to implement a system to monitor compliance of repair of major damage in accordance with the Master Contract. For this purpose, it shall be the responsibility of each port to establish a procedure that will verify that all parties are complying with the provisions of the Master Contract in that port. Each port shall provide to the Jurisdiction Committee the procedure established in that port.

(b) In order to be recognized as a valid POD System by the Jurisdiction Committee, each port’s system must be able to do the following:

(i) Identify major damage;

(ii) Track the movement of equipment identified with Major Damage; and

(iii) Record and validate the repair of the equipment.

Section 6. Warranties.

During the warranty period, there will be one (1) ILA mechanic or the number as provided in the local agreement. The training for the warranty work is to be at the discretion of the employer.

After the initial warranty period, extended warranty work will require one (1) ILA mechanic per warranty staff onsite. Warranty documentation will be provided to the ILA mechanic.

ARTICLE X

PRESERVATION OF CHASSIS MAINTENANCE-AND-REPAIR WORK

Section 1. Preamble.

USMX and the ILA recognize that the chassis-ownership-and-leasing model has changed significantly over the period of the 2009-2012 Master Contract. USMX and the ILA recognize that this situation will continue to develop over the term of this Master Contract and that further change is likely. USMX and the ILA are committed to work-preservation provisions to promote continued

ILA jurisdiction of the chassis maintenance and repair work within the marine terminals and port areas covered by this Master Contract. The parties recognize the right of the ILA to further jurisdictional expansion by the traditional organizing methods, but this Master Contract does not contemplate any jurisdictional expansion.

Section 2. Chassis Pools.

USMX and the ILA recognize that the operators of chassis pools that are not bound by the

Master Contract have made various commitments to USMX and the ILA to continue to use ILA-represented employees for maintenance and repair work on their chassis in port areas covered by this Master Contract, and USMX and the ILA applaud and support these commitments. Going forward USMX and the ILA will work with these chassis-pool operators to further solidify these types of commitments, including their possible inclusion into membership in USMX.

Section 3. Sale or Transfer of Chassis.

(a) No carrier or association of carriers bound by this Master Contract that operates chassis pools shall sell or transfer chassis except to a buyer that agrees to preserve the ILA’s existing jurisdiction over the repair and maintenance of chassis. To achieve that end, the carriers agree that if they or any association of carriers that operates chassis pools sell or transfer chassis to third parties not bound by this Master Contract, they will include the following provisions in the contracts of sale or transfer:

(i) As a material term of this agreement the purchaser or transferee agrees until September 30, 2024 to continue to use ILA-represented employees that the seller or transferor had used prior to the sale or transfer to maintain and repair the chassis that are the subject of this agreement at marine terminals and off-pier facilities in the historic port areas. The purchaser/transferee also agrees to include the foregoing provision in any subsequent contract of sale entered into on or before September 30, 2024 in which the purchaser/transferee sells or transfers the said chassis to a third party.

(ii) The purchaser/transferee agrees that a breach of this provision will result in irreparable injury to both the seller/transferor and the affected employees represented by the International Longshoremen’s Association, AFL- CIO, and that both the seller/transferor and the affected ILA-represented employees may not be adequately compensated at law for such breach of the provision.

The purchaser/transferee consents to the entry of injunctive and any other appropriate equitable relief against it with respect to any breach of the provision.

(b) If any carrier or association of carriers bound by this Master Contract that operates chassis pools decides to sell or transfer chassis, such carrier or association shall inform the ILA and USMX as soon as possible and shall provide to them evidence that the contract of sale or transfer includes the required provisions set forth in subsections (a)(i) and (a)(ii) of this Section 3.

Section 4. Inspection and Maintenance of Chassis.

The ILA shall retain its jurisdiction to inspect and maintain chassis at marine terminals and off-pier facilities in the historic port area. No container shall be received, delivered, mounted on or dismounted from a chassis pool chassis that has been repaired and maintained in the port area by employees who are not represented by the ILA. This provision shall not apply to owner-operator-owned or shipper-owned chassis.

Section 5. Roadability.

The parties to this Master Contract shall have the right to reject any chassis at any marine facility covered by this Master Contract that does not meet roadability standards for safety. The

Joint Technical Committee shall establish roadability standards for safety…