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BLOG Jul 12, 2023


ILA CHARLESTON PROTEST AIMS TO UP ANTE ON EXPANDED WORK JURISDICTION



The International Longshoremen's Association (ILA) plans to demonstrate at the
South Carolina state capitol Wednesday to send a message that it will keep
fighting to gain jurisdiction over all work at a new Charleston marine terminal,
a philosophy the union intends to push for other terminal expansions, including
in Savannah.

ILA Local 1422 in Charleston, with support of union members nationwide, is
leading the protest against the state's and South Carolina Port Authority's
(SCPA) use of non-union state employees at the Hugh K. Leatherman Terminal,
which opened in 2021. But the union's message is meant to be heard beyond
Leatherman.

"This is not just about Charleston," Kenneth Riley, international vice president
of the ILA, told the Journal of Commerce Tuesday. "When we negotiated this
[current master contract] language, this was for the entire (east) coast. And
that's where the word 'preservation' comes in and that's the point we were
trying to argue with the Fourth Circuit (Court)."

That marks the ILA's first public acknowledgement of how it views expansion
plans elsewhere, including at the Port of Savannah's Garden City and Ocean
terminals and what it believes is its right to also have jurisdiction over all
work at those facilities. The Georgia Ports Authority (GPA) is investing $1.15
billion to expand the Ocean Terminal, which handles containers and breakbulk
cargo. GPA is also spending $260 million on upgrades to berth 1 at the Garden
City Terminal, the largest marine terminal in North America.

Both Charleston and Savannah, as well as Wilmington, NC, use so-called hybrid
models for its longshore workforce, with union workers performing certain jobs
including maintenance and repair and clerical duties, while state employees
operate cranes and perform other on-dock work. At issue is whether giving union
members all work at new East Coast terminals or expansions, per a 2013 master
contract clause, is creating new jobs or preserving work the ILA is entitled to.

The SC Ports Authority, backed by the state, disputes the ILA's interpretation
of the language, arguing the master contract clause was never intended to give
the ILA jurisdiction over state employees — a model the port has utilized for
decades — but rather was inserted to protect existing ILA work.

"The ILA is erroneously asserting the state is trying to take jobs away from
union employees, but those jobs were never theirs to begin with in Charleston,"
SC Ports President and CEO Barbara Melvin said Wednesday in a statement to the
Journal of Commerce. "SC Ports and ILA employees have productively worked
alongside one another for decades...Our operating model works, and there is no
reason to change it."


LEATHERMAN INFLUENCE IN NEXT CONTRACT

South Carolina Gov. Henry McMaster is unlikely to walk away from a current
lawsuit against the ILA, given that South Carolina's economic strategy hinges on
being a right-to-work state, meaning a state that does not require employees to
be part of a union. The U.S. Court of Appeals for the Fourth Circuit Court in
Baltimore is hearing the case pitting the SCPA and the U.S. Maritime Alliance
(USMX), which represents the ocean carriers, against the ILA. It is not known
when a decision could come.

Whatever the ruling, the case could end up before the U.S. Supreme Court, which
only accepts about 1% of the cases put before it.

While the legal battle continues, the ILA will use the Leatherman dispute as an
opportunity to strengthen language in the next master contract to close
loopholes that Riley believes Charleston and Savannah are using to define a
terminal expansion versus a new terminal.

"There's a separation in concrete," Riley said. The ILA's existing contract
expires at the end of September 2024.

"We'll talk about strengthening the language the next go round to cover (an)
extension of an existing facility...to be defined as a new facility that's
covered under the master contract, and that those jobs would be 100% ILA," Riley
said.

The ILA's decision to boycott Leatherman, the first new marine container
terminal to open in the United States in a decade, spurred GPA in 2021 to shelve
its plan to build a new container terminal at Hutchison Island.

Riley said he knows Savannah is watching the Charleston dispute "very closely"
to see how the outcome might affect its expansion projects.

Officials from the GPA declined to comment.





Author: Teri Errico Griffis

Subscribe now or sign up for a free trial to the Journal of Commerce and gain
access to breaking industry news, in-depth analysis, and actionable data for
container shipping and international supply chain professionals.

Subscribe to our monthly Insights Newsletter

--------------------------------------------------------------------------------

This article was published by S&P Global Market Intelligence and not by S&P
Global Ratings, which is a separately managed division of S&P Global.

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