THE International Longshoremen's Association (ILA) has sued Hapag-Lloyd and the United States Maritime Alliance (USMX) for US$200 million, alleging they conspired to break the main longshore contract when they allowed non-union labour to unload a ship at the Port of Charleston's new container terminal.
The union's lawsuit comes after a separate complaint from the South Carolina Ports Authority filed in March that alleges the USMX-ILA master contract is blocking ocean carriers from calling on the new US$1.7 billion Leatherman Terminal.
The ILA filed suit filed last week in New Jersey state court claims that USMX, which represents longshore employers, and Hapag-Lloyd's US agent intentionally breached the contract that requires union labour to unload ships and handle containers. The breach occurred when non-union longshore workers handled containers for a Hapag-Lloyd ship that made the inaugural call at the Leatherman terminal, reports IHS Media.
'The Hapag-Lloyd ship intentionally went to Leatherman Terminal even though it knew that non-bargaining unit employees who were not covered by the Master Contract would be hired to unload its containers and to handle its containers on the terminal,' the suit said. 'Upon information and belief, USMX did not do anything to dissuade Hapag-Lloyd from utilising the non-bargaining unit labour and, indeed, may have encouraged them to do so.'
The Leatherman Terminal, the first new US container terminal built since 2009, employs what the SCPA calls a 'hybrid' workforce, where state employees work on cranes and yard equipment while ILA members work as clerks, checkers, and alongside the ships.
However, the ILA claims that it should have jurisdiction over all of Leatherman's workers because its master contract with the USMX covers all longshore work along the US East Coast.
The ILA alleged in its suit that it had reached out for two years to the USMX to have union jurisdiction extended to Leatherman's longshore workforce, but to no avail.
When Hapag-Lloyd's Yorktown Express made the first call at Leatherman on April 9, the ILA alleged that non-union longshore employees worked on the cranes, used forklifts, and moved containers onto chassis.
As a result of that, 'ILA members lost out on work opportunities, suffering lost wages and lost benefits, thereby also depriving the ILA of dues income,' its suit said.
While the exact number of non-union longshore workers employed at Leatherman wasn't listed in the suit, the ILA claims that its contract with the USMX allows it to seek damages of $1,000 for each violation of its contract.
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The union's lawsuit comes after a separate complaint from the South Carolina Ports Authority filed in March that alleges the USMX-ILA master contract is blocking ocean carriers from calling on the new US$1.7 billion Leatherman Terminal.
The ILA filed suit filed last week in New Jersey state court claims that USMX, which represents longshore employers, and Hapag-Lloyd's US agent intentionally breached the contract that requires union labour to unload ships and handle containers. The breach occurred when non-union longshore workers handled containers for a Hapag-Lloyd ship that made the inaugural call at the Leatherman terminal, reports IHS Media.
'The Hapag-Lloyd ship intentionally went to Leatherman Terminal even though it knew that non-bargaining unit employees who were not covered by the Master Contract would be hired to unload its containers and to handle its containers on the terminal,' the suit said. 'Upon information and belief, USMX did not do anything to dissuade Hapag-Lloyd from utilising the non-bargaining unit labour and, indeed, may have encouraged them to do so.'
The Leatherman Terminal, the first new US container terminal built since 2009, employs what the SCPA calls a 'hybrid' workforce, where state employees work on cranes and yard equipment while ILA members work as clerks, checkers, and alongside the ships.
However, the ILA claims that it should have jurisdiction over all of Leatherman's workers because its master contract with the USMX covers all longshore work along the US East Coast.
The ILA alleged in its suit that it had reached out for two years to the USMX to have union jurisdiction extended to Leatherman's longshore workforce, but to no avail.
When Hapag-Lloyd's Yorktown Express made the first call at Leatherman on April 9, the ILA alleged that non-union longshore employees worked on the cranes, used forklifts, and moved containers onto chassis.
As a result of that, 'ILA members lost out on work opportunities, suffering lost wages and lost benefits, thereby also depriving the ILA of dues income,' its suit said.
While the exact number of non-union longshore workers employed at Leatherman wasn't listed in the suit, the ILA claims that its contract with the USMX allows it to seek damages of $1,000 for each violation of its contract.
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