Delaware River Ports and ILA Sign Six-Year Agreement Landmark Contract Covers Waterfront to 2010.

PHILADELPHIA -- The Ports of the Delaware River Marine Trade Association today announced details of an historic six-year agreement with members of the International Longshoremen's Association that will ensure labor stability along the waterfront here, in South Jersey and Wilmington, DE.

"We are pleased with the results of the negotiation, which went smoothly and resulted in a win-win situation for the employers and the union," said Uwe Schulz, PMTA President, at a meeting at the Seamen's Church Institute in Philadelphia, site of the labor-management negotiations as well.

It is estimated that the cost increase for the vessel over the life of the contract is approximately 15% while the terminal increase over the life of the contract is approximately 18%. Journeymen, who participate in a five-year development program, will receive the premium rate of pay and benefits beginning 10/1/2004.

The parties have agreed to increased benefit eligibility requirements since the industry is moving from a casual nature to a dedicated year round employee. The average longshoreman worked 1,980 hours during the past contract year. With this dedicated workforce we will be able to achieve better productivity, less injuries and less cargo damage.

The contract details cover wage increases, pensions, local medical benefits and vacation issues. The employers, noted Mr. Schulz, will be contributing in excess of $7.5 million over the life of the contract to cover these benefits and to ensure an amicable and fair working environment.

The new contract also offers a six-month retirement incentive for those with frozen defined benefits covering some 510 long-term workers. Anyone retiring between October 1, 2004 and March 31, 2005 will be entitled to a total of a $700 increase in monthly benefits from $1,300 to $2,000. This should enable us to bring in new employees at a lesser wage rate. For those who do not participate in the retirement incentive, there will be two increases in the defined benefit to get the monthly pension benefit payment to $2,000 by January 2, 2011. Those employees that are not eligible for the defined benefit plan will receive a significant increase in their defined contribution plan over the life of the contract.

"There are other finite details to the contract," said Uwe Schulz. "We are certain that the good working climate here will attract new and incremental business that will only serve to help the economic development of the region, our ports and our dedicated workers. In addition, we believe this six-year agreement allows us to remain competitive in the breakbulk market while bringing about stability for employees and our customers." Mr. Schulz added that the recent contract that expired was itself a record-breaking three-year commitment that helped the growth and employment in the areas as well. The overall hours worked under covered employment increased 5% last year over the previous year. With the lifting of the steel quotas imposed by the government and a bright economic forecast, Mr. Schulz said he hopes to improve upon those results this year.

Editors' note: Uwe Schulz is available at 215-426-2510