Appendix B. Management-ILA Rules on Containers PDF Print E-mail
Monday, 02 July 2007
APPENDIX B

MANAGEMENT-ILA RULES ON CONTAINERS
(As amended by Agreement of May 27, 1980)

PREAMBLE

This Agreement made and entered into by and between the carrier
and direct employer members of the Management Port Associations
(hereinafter referred to collectively as "Management") and the
International Longshoremen’s Association, AFL-CIO ("ILA"), its
Atlantic Coast District ("ACD"), its South Atlantic and Gulf Coast
District ("SAGO") and its affiliated local unions in each Management
port ("locals") covers all container work at a waterfront facility which
includes but is not limited to the receiving and delivery of cargo, the
loading and discharging of said cargo into and out of containers, the
maintenance of containers, and the loading and discharging of
containers on and off ships.

Management agrees that it will not directly perform work done
on a container waterfront facility (as hereinafter defined) or contract
out such work which historically and regularly has been and currently
is performed by employees covered by Management-ILA
Agreements, including Management-ILA craft agreements, unless
such work on such container waterfront facility is performed by
employees covered by Management-ILA Agreements.

RULES

The following provisions are intended to protect and preserve
the work jurisdiction of longshoremen and all other ILA crafts which
was performed at deepsea waterfront facilities. These rules do not
have any effect on work which historically was not performed at a
waterfront facility by deepsea ILA labor. To assure compliance with
the collective bargaining provisions, the following rules and
regulations shall be applied uniformly in all Management Ports to
all import or export cargo in containers:

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DEFINITIONS

(a) LOADING A CONTAINER -- means the act of placing
cargo into a container.
(b) DISCHARGING A CONTAINER -- means the act of
removing cargo from a container.
(c) LOADING CONTAINERS ON AVESSEL -- means the
act of placing containers aboard a vessel.
(d) DISCHARGING CONTAINERS FROM AVESSEL --
means the act of removing containers from a vessel.
(e) WATERFRONT FACILITY -- means a pier or dock
where vessels are normally worked including a container compound
operated by a carrier or direct employer.
(f) QUALIFIED SHIPPER -- means the manufacturer or
seller having a proprietary financial interest (other than in the
transportation or physical consolidation or deconsolidation) in the
export cargo being transported and who is named in the dock/cargo
receipt.
(g) QUALIFIED CONSIGNEE -- means the purchaser or
one who otherwise has a proprietary financial interest (other than in
the transportation or physical consolidation or deconsolidation) in
the import cargo being transported and who is named in the delivery
order.
(h) CONSOLIDATED CONTAINER LOAD -- means a
container load of cargo where such cargo belongs to more than one
shipper on export cargo or one consignee on import cargo.
RULE 3 -- BATCHING

When an employer-member or carrier uses a trucker to remove
or deliver containers in batches, or in substantial number, from or to
a terminal to another place of rest (outside of its terminal) where
containers are stored pending their delivery to a consignee (or after
being received from a shipper and while waiting the arrival of a

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ship), for the purpose of reducing the work jurisdiction of the ILA or
any of its crafts, such use is deemed to be batching and an evasion of
these Rules in violation of the Management-ILA contracts.

RULE 4 -- HEADLOAD

Where a single qualified shipper sends an export container which
contains all of his own cargo to a waterfront facility and such
container is not full, the carrier or direct employer may load this
container with additional cargo at the waterfront facility. On import
cargo, the carrier or direct employer may discharge any such
additional cargo and send the remaining cargo in the container to the
qualified consignee. The loading or discharging of cargo at ILA ports
shall be performed at a waterfront facility by deepsea ILA labor.

RULE 7 -- NO AVOIDANCE OR EVASION

The above rules are intended to be fairly and reasonably applied
by the parties. To obtain non-discriminatory and fair implementation
of the above, the following principles shall apply:

(b) Containers Owned, Leased or Used -- Containers owned,
leased or used by companies which are affiliated either
directly or through a holding company with a carrier or a
direct employer shall be deemed to be containers owned,
leased or used by a carrier or direct employer. Affiliations
shall include subsidiaries and/or affiliates which are
effectively controlled by the carrier or direct employer, its
parent, or stockholders of either of them.
(c) Liquidated Damages -- Failure to load or discharge a
container as required under these rules will be considered
a violation of the contract between the parties. Use of
improper, fictitious or incorrect documentation to evade
the provisions of Rule 1 and Rule 2 shall also be considered
a violation of the contract. If for any reason a container is
not longer at the waterfront facility at which it should have
been loaded or discharged under the Rules, then the carrier
or its agent or direct employer shall pay, to the joint
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Container Royalty Fund, liquidated damages of $1,000 per
container which should have been loaded or discharged.
If any carrier does not pay liquidated damages within 30
days after exhausting its right to appeal the imposition of
liquidated damages to the Committee provided in Rule 9(1)
below, the ILA shall have the right to stop working such
carrier’s containers until such damages are paid.

RULE 10 -- CONTAINER ROYALTY PAYMENTS

The two Container Royalty payments, effective in 1960 and 1977
respectively, shall be continued and shall be used exclusively for
supplemental cash payments to employees covered by the
Management agreements, and for no other purpose. The remaining
royalty payment effective in 1971, also shall be continued and shall
be used for fringe benefit purposes only, other than supplemental
cash benefits, which purposes are to be determined locally on a port-
by-port basis. The Container Royalty payments shall be payable only
once in the continental United States. They shall be paid in that ILA
port where the container is first handled by ILA longshore labor, at
longshore rates. Containers originating at a foreign port which are
transshipped at a United States port for ultimate destination to another
foreign port ("foreign-sea-to-foreign-sea containers") are exempt
from the payment of container royalties. Container Royalty payments
shall be asserted against all containers moving across the continental
United States by rail or truck in the foreign-to-foreign
"LANDBRIDGE" system.

Management and the Carriers agree that the payment of Container
Royalties as provided in their agreements is of the essence to this
agreement and, if for any reason during the term of this agreement
such payments cannot be made in their present form, then
Management and the Carriers shall provide by some other form of
assessment for the payment of equivalent amounts to be used for the
same purposes as said Container Royalties are presently used.

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