Christmas Tributes in the ILA - IT'S TRUE!

Not sure what's going on behind the scenes, but finally the Waterfront Commission is keeping up the pressure, and people are folding.   No wonder the ILA has been so intent on keeping the Container Royalty Fund intact.

From The NY/NJ Waterfront Commission

Longshoremen Plead Guilty To Extortion Conspiracy Involving Christmastime Tribute Payments
May 21, 2014
           NEWARK, N.J. - Three former longshoremen admitted today that they conspired to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
           Salvatore LaGrasso, 58, of Edison, N.J.; Michael Nicolosi, 45, of Staten Island, N.Y.; and Julio Porrao, 71, of Palm Coast, Fla. – all former supervisors on the New Jersey piers – pleaded guilty today to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against them. LaGrasso, Nicolosi and Porrao entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
           According to documents filed in this case and statements made in court:
            During their guilty plea proceedings, LaGrasso, Nicolosi and Porrao admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. LaGrasso and Nicolosi were suspended from their positions following their arrests in this case. Porrao had already retired from his employment on the New Jersey piers at the time of his arrest.

click here for link to read complete article

ILA official requests reinstatement after embezzling from union

It's rather amazing this guy even had the guts to request reinstatement.  But, they use to be able to get away with this kind of things.   I trust the union members are secretly happy, but they won't be able to say so out loud.

From the Waterfront Commission

Commission Denies Fomer ILA Local 1233 Secretary/Treasurer's Request for Reinstatement on the Longshoreman's Register After Embezzlement Conviction
April 8, 2014
           The Commission denied the Request for Re-instatement to the Longshoreman’s Register by Gregory “Ronnie” Taylor, former ILA Local 1233 Secretary/Treasurer. Taylor was previously decasualized for failing to meet the work requirements. In support of his Request for re-instatement, Taylor indicated that he failed to meet the work requirements because he held the position of Secretary/Treasurer of Local 1233. On February 6, 2013, in the United States District Court, District of New Jersey, Taylor pleaded guilty to Count 26 of an indictment that charged him with issuing a vacation check for $7,852 to himself without authorization. Taylor also admitted that between 2007 and 2010, while serving as secretary-treasurer, he embezzled a total of $71,000 by improperly cashing duplicate paychecks, as well as other checks from the union’s operating account, including for unauthorized credit card expenditures.
           The Commission denied Taylor’s Request for Re-instatement in that his service as Secretary/Treasurer of ILA Local 1233 could not be considered “good cause” for failing to meet work requirements in that Taylor abused his position as Secretary/ Treasurer and breached his fiduciary duty and obligations to the members of the ILA Local 1233.
           

           
click here for link

Say What?? Guess the ILA guys had a liquid lunch.

Finally, after 60 years the Waterfront Commission is doing their job.   It's a bit difficult for the ILA
officials to understand that just because they say something, does not make it true.

Witness this statement (as reported by the Waterfront Commission)

 In today’s statement attacking the Commission’s efforts, NYSA President John Nardi staggeringly asserted that the ILA is “already a diverse workforce.” This is directly contradicted by the demographics of the only two ILA locals that have joined in the lawsuit, Local 1804-1 and Local 1814, whose registrants are less than 2% and 8% African American, respectively. It is for this very reason that the New York State Division of Human Rights has filed charges against the NYSA, MMMCA, ILA, and ILA locals alleging discriminatory hiring.

Seriously John?  The ILA is a diverse workforce?   I guess you don't know how to read demographic statistics.  I highlighted to word "staggeringly", which I am sure was not the first choice of words which came to mind after reading this statement.

Anyway, here is the link to the full report, and the full report

WCNYH
Statement of the Waterfront Commission of New York Harbor in Response to Press Release by NYSA and ILA Regarding Lawsuit Filed
November 22, 2013
           Today, the New York Shipping Association, Inc. (NYSA) and International Longshoremen’s Association, AFL-CIO (ILA) announced the filing of their complaint against the Waterfront Commission of New York Harbor. That complaint, which alleges interference in their collective bargaining process, is actually designed to prevent the Commission from fulfilling its mandate to ensure the fair hiring of a diverse workforce in the Port.
           Those allegations of improper interference with the collective bargaining process are categorically untrue. Over the past sixty years, courts have consistently upheld the Commission’s actions when a collective bargaining agreement has violated the letter and spirit of the Waterfront Commission Act.
           As shown by public hearings, current provisions in the collective bargaining agreements of the ILA, NYSA and Metropolitan Marine Maintenance Contractors Association (MMMCA) have perpetuated disparate hiring practices, resulting in an incredible lack of diversity in waterfront employment, as well as an income gap among those minorities that are employed there. Indeed, the hiring, training and promotion practices of the industry have led to no/low-work, no/low-show positions generally characterized by outsized salaries provided to a privileged class. Those with such positions are overwhelmingly given to white males connected to organized crime figures or union leadership.
           In today’s statement attacking the Commission’s efforts, NYSA President John Nardi staggeringly asserted that the ILA is “already a diverse workforce.” This is directly contradicted by the demographics of the only two ILA locals that have joined in the lawsuit, Local 1804-1 and Local 1814, whose registrants are less than 2% and 8% African American, respectively. It is for this very reason that the New York State Division of Human Rights has filed charges against the NYSA, MMMCA, ILA, and ILA locals alleging discriminatory hiring.
           To combat such practices, the Commission has asked that the industry implement a hiring plan that will result in individuals being hired in a fair and non-discriminatory basis in accordance with state and federal laws - - as is required of all other employers. In response, the NYSA and ILA issued a press release expressing frustration with the Commission’s “bureaucratic delays,” claiming labor shortages have had a resultant negative economic impact on cargo flow. During subsequent discussions with The Port Authority of New York and New Jersey, the NYSA was forced to retract that statement and publicly agreed that the Commission was, and is not, delaying hiring, and that applicants were actively processed.
           Indeed, the Commission has expeditiously processed each and every applicant referred, in order to put people to work in the Port as quickly as possible. Many NYSA and ILA referrals have been prequalified and are now ready for employment. The Commission has also offered a diverse prequalified pool of labor assembled from government employment centers in New York and New Jersey, to alleviate any immediate labor shortages. Those individuals, once described by ILA President Harold Daggett as “garbage,” were summarily rejected, with the NYSA claiming that their employment was prohibited by the provision of the collective bargaining agreement at issue.
           In today’s press release, the NYSA and ILA indicated that the Commission has obstructed their efforts to achieve productivity and growth. Over the past several weeks, terminal operators have indicated that there is a growing need for immediate labor. As of today, there are 136 individuals – many of whom are military veterans – prequalified to be put to work in the Port. To date, the industry has simply chosen not to do so. Instead, they have responded with a baseless lawsuit.
           The NYSA’s last meritless attempt to challenge the Commission’s authority was summarily dismissed by the federal court, and its appeal was likewise denied. That litigation needlessly depleted its members’ resources. Today the NYSA has definitively demonstrated that it no longer represents the interests of its terminal operator members but, rather, that of the ILA. This attempt to institutionalize discrimination through collective bargaining agreements will not be tolerated. The Waterfront Commission of New York Harbor will vigorously and successfully defend this lawsuit.
          

The Official Report by the Waterfront Commission of New York Harbor

 

The Waterfront Commission of New York/New Jersey posted on their web-site the official report submitted to the Governors of New Jersey and New York.  This report was issued in March 2012, but references public hearings conducted in 2010.   Not sure what took them so long to issue the report.  The wheels of government turn slowly.

Click here for link to complete report.

Below is how it starts...

 

 

To the Honorable Chris Christie, Governor, and the Legislature of the State of New Jersey

and To the Honorable Andrew M. Cuomo, Governor,and Legislature of the State of New York: 

 

PRELIMINARY STATEMENT

Between October 14, 2010 and December 2, 2010, the Waterfront Commission of New

York Harbor (“Commission”) conducted public hearings concerning unfair employment 

practices within the Port of New York District )"the Port", or "the Port of New York-New Jersey")

1

The hearings demonstrated and publicized that certain hiring practices, achieved

primarily through calculated provisions of collective bargaining agreements, illogical

interpretations of other provisions, and claims of “custom and practice,” have created within the

Port no/low-work, no/low-show positions generally characterized by outsized salaries. The

privileged few that are given those jobs are overwhelmingly connected to organized crime

figures or union leadership.

Not much has changed since the early days.  The Waterfront Commission is trying.  We shall see.

ILA's complaint about Waterfront Commission not considered valid

The Port Authority of New York and New Jersey says the Waterfront Commission is not
delaying the hiring of new employees.

This from their web-site

STATEMENT BY PORT AUTHORITY ON THIS WEEK'S MEETING ON HIRING ISSUES IN THE PORT OF NEW YORK AND NEW JERSEY

Date: Nov 07, 2013
Press Release Number: 112-2013
"As the agency that oversees the largest port complex on the East Coast, our goal is simple: To continue to build on the 280,000 jobs and billions of dollars in economic activity that the Port of New York and New Jersey provides to the region. This week, we had a productive meeting with the Waterfront Commission and the New York Shipping Association over hiring at the port at a time when there is a real need for additional employees on the docks. All parties made a great deal of progress, which when effected, will result in the hiring of hundreds of ILA members in the short term. Though work needs to be done to finalize the agreement, we are optimistic as we continue to work with both parties towards a settlement. All parties agree that the Waterfront Commission was and is not delaying hiring, and applicants are actively being referred and processed. All stakeholders continue to work in a cooperative fashion to put people to work as quickly possible."

CONTACT:
Port Authority of New York and New Jersey
212-435-7777

ILA Daggatt - Please Do Not Believe His Protests

From Today's Journal of Commerce

International Longshoremen’s Association President Harold Daggett said ILA members in the Port of New York and New Jersey are “fed up” with hiring delays he blames on the Waterfront Commission of New York Harbor.

And... from the Waterfront Commission of New York web-site

Former Secretary Treasurer of Local 1233 Sentenced to Jail for Embezzlement of Union Funds
September 12, 2013
           Gregory “Ronnie” Taylor, the former Secretary Treasurer of ILA Local 1233, was sentenced yesterday by the Honorable Joel A. Pisano in federal court in Trenton, New Jersey. Taylor was sentenced to six months in jail, followed by six months of house arrest and three years of supervised release. Taylor was also ordered by the Court to pay $71,000 in restitution to Local 1233 for his role in the embezzlement of union funds. Taylor had pleaded guilty on February 26, 2013 to issuing a vacation check for $7,852 to himself without authorization. Taylor also admitted that between 2007 and 2010, while secretary-treasurer, he embezzled a total of $71,000 by improperly cashing duplicate paychecks, as well as other checks from the union’s operating account, including for unauthorized credit card expenditures.
           Taylor had been arrested on September 15, 2011 for stealing more than $100,000 in union funds for his personal use. The case was investigated by the Waterfront Commission of New York Harbor (Detectives Albanese and Petrillo, Assistant Counsel Michelle Demeri and Deputy Director of Audit Jared Filus) the United States Department of Labor. The United States Attorney’s Office for the District of New Jersey (AUSA V. Grady O’Malley) prosecuted the case.

and another...

Longshoreman’s Registration Revoked After Conviction for Unlawful Possession of Firearm
September 24, 2013
           Longshoreman James J. Sweigart was arrested after he was observed in a Newark diner with a loaded .9mm semi-automatic handgun in the waistband of his pants. Sweigart had no license for the Walther PPK pistol. The Commission temporarily suspended Sweigart’s registration as a longshoreman on January 22, 2013 pending an administrative hearing on the charge. Sweigart pleaded guilty to Unlawful Possession of a Firearm on July 15, 2013 before the Honorable Robert H. Gardner of the Superior Court of Essex County. On September 9, 2013, Sweigart was sentenced to 3 years probation, 25 hours of community service and ordered to surrender his Waterfront registration with prejudice. Today, the Commission accepted that surrender with prejudice and revoked Sweigart’s registration as a longshoreman.
           

          
 and....another!!

Checker Sentenced to Jail For Conspiracy to Defraud the United States
October 16, 2013
           Checker Vincent Fusella was sentenced yesterday in Federal District Court to two months in jail and ordered with his brother Gerardo Fusella to pay more than $ 1 million in restitution. Vincent Fusella had pleaded guilty on February 27, 2013, before the Honorable Kiyo A. Matsumoto in Federal District Court for the Eastern District of New York to Conspiracy to Defraud the United States under the First Count of his Thirty-One Count indictment. Fusella admitted to concealing wages and failing to pay FICA taxes to the IRS on behalf of workers at two trucking companies he and his brother Gerardo Fusella owned – The Fusella Group, LLC and Alpine Investment Group, Inc. His brother Gerardo was also sentenced yesterday and received a forty-six month prison sentence.
           Vincent Fusella was arrested on December 22, 2011 and his license as a Checker was suspended by the Commission that date pending an administrative hearing on the charges in the indictment. The United States Attorney’s Office for the Eastern District of New York prosecuted the criminal matter.

Seriously!!!  Daggatt thinks he has a reason to complain about the Waterfront Commission!
Finally, after all these years, they are starting to do their job.   Those wire taps must have
cleared out the bad guys.

Here's hoping they find something on Daggatt and get rid of him.   I feel bad for the union guys.
Losing so much of their money to the bosses.   The way it's going they might not even have a
retirement fund left!

          

          

Will U.S. Dockworkers Strike?

What a shock.  The ILWU (representing the U.S. West Coast) went on strike for 8 days in December.

They came to an agreement, but, low and behold., yesterday the members did not vote for the agreement.
What now?  

No one knows.  Will there be another strike in Los Angeles/Long Beach?

And then what about the U.S. Atlantic and Gulf ports?   The union reached a "tentative agreement", but
the contract (to my knowledge) expired Feb. 6.   So presumably they are working without a contract.

Today reports say they will continue negotiations and expect to conclude in March. ??

Perhaps the carriers don't get this, but it looks to me that the unions are in a very good spot
to really shut down the country.  What would happen if the U.S. Atlantic and Gulf port went
out on strike, as well as the Long Beach/Los Angeles port?

Somebody better ask for a contract extension for the U.S. East/Gulf Port until the new contract
is place.

ILA ReachesTentative Agreement

Looks as if there won't be a strike at the U.S. Atlantic and Gulf Ports.   The agreement is
not yet signed, but they are close.

Here's the press release

Friday, February 1, 2013 Contact: John Arnold
For Immediate Release Director of Public Affairs
Web site: www.fmcs.gov Phone: (202) 606-8100

Update on United States Maritime Alliance
And International Longshoremen’s Association
Labor Negotiations

WASHINGTON, D.C. — Federal Mediation and Conciliation Service Director George H.
Cohen issued the following statement today on the labor negotiations between the United States
Maritime Alliance and the International Longshoremen’s Association:
“I am extremely pleased to announce that the parties have reached a tentative agreement for a
comprehensive successor Master Agreement. The tentative agreement is subject to the
ratification procedures of both parties and, as well, to agreements being achieved in a number of
local union negotiations. Those local negotiations are ongoing and will continue without
interruption to any port operation. Out of respect for the parties’ ratification processes, and
consistent with the Agency’s long-standing confidentiality policy, we will not disclose any
details concerning the substantive provisions that have been reached.”
“However, as the negotiations have been conducted under the auspices of the FMCS,
commencing last September and continuing to date, I can report that the tentative agreement
reflects the culmination of good faith negotiations in which the parties successfully
accommodated strongly held competing positions because of their commitment to problem
solving. Again, collective bargaining has proven its worth by avoiding a potential work stoppage
that would have had a severe negative impact on the nation’s economy.”
“On behalf of the FMCS, I want to especially convey my thanks to ILA President Harold
Daggett and USMX Chairman and CEO James Capo for their leadership, patience, and
persistence and to their respective hard-working negotiating committees. Finally, my colleagues
Deputy Director Scot Beckenbaugh, Director of Mediation Services Jack Sweeney, and
Commissioner Pete Donatello provided valuable assistance both to me and the parties throughout
this lengthy process.”
###
The Federal Mediation and Conciliation Service, created in 1947, is an independent U.S. government
agency whose mission is to preserve and promote labor-management peace and cooperation.
Headquartered in

Watch for U.S. East Coast/Gulf strike

I have thought for some time the ILA will strike, but hesitated to say so.

As I have mentioned before, the ILA is totally out of touch with reality.  They do not want to
"give in" to computerization, efficiencies, etc., because this would mean less jobs for their
members.

They also do not want to give  up "royalty payments", which came about after shipping changed
from break bulk to containers.   How long ago was that?  I doubt many people reading this
ever remember a time of  before containers.

Having said this, the ILA also does not realize that the carriers would probably not be hurt
all that much from a strike.  Sure, some of the smaller ones might, but the big carriers will
find other ways to get the cargo to the customers, and, because it will be due to your strike,
they will pass the costs on to the customers.

With the U.S. economy being slow, it's not going to impact things so much.  Freight rates
have been so incredibly low the last few years paying some additional money to get cargo
won't be a huge hardship.

For the carriers, it might give them a chance to negotiate the new rates at a higher level.

So, what I think will happen is the ILA will go on strike.  They will be out maybe 2 weeks,
they will be ordered back to work by the government, and this will continue for some time.

The rail roads have capacity to move containers from the West Coast to the East Coast,
and it will take a little time to get things organized, but because U.S. Customs allows
clearance electronically (hello- wake up ILA), it's not so difficult to divert cargo as it
was say even 5 years ago.

In a couple of weeks we will see if my guess is right or wrong.

Catch ya then.





 

Racketeers on the New York/ New Jersey Waterfront

 I don't think I need to add any comments to this.....it kind of says it all.

From The Journal of Commerce

 

Administrative law judge upholds Waterfront Commission ruling

An administrative law judge has upheld the Waterfront Commission of New York Harbor’s decision to revoke a Ports America hiring agent’s license to work in the Port of New York and New Jersey because of association with racketeers.

The Waterfront Commission revoked the license of Pasquale Pontoriero, who was accused of associating with the late Tino Fiumara, a Genovese mob capo, and Stephen DePiro, a Genovese soldier.

Fiumara died in September of 2010; DePiro is serving a federal prison sentence and awaiting trial on federal racketeering charges involving the extortion of ILA members in the port.

How the ILA gets paid

Contract negotiations between the ILA (union for the longshoremen...and they are mostly men),
and the representatives for the ocean carriers resume next week, thought it would be
interesting to look into their current contract.

The ILA load and discharge vessels, and move the containers around the terminals, at U.S. East and
Gulf Coast ports.

I don't know if there are any ships worked by the ILA which are not containerized, or ro/ro
(roll on-roll off cargo).  I doubt it.
But yet, the union has not conceded to change their pricing based on containerization.  They
still use an outdated method of charging some of their charges based on weight....and not just
weight, but the commodity.  This is used to fund what is called the "Container Royalty Fund".
I don't know the entire history of this fund, but most likely it came into being when
ships went from bulk to containers.

The calculation using weight and commodity  is a throw back to the truck tariffs, which
disappeared around 1980 as trucking was deregulated.  In fact, when the ILA comes to
your office to audit this report, they drag in an old trucking classification book.

If you want to know more about this, I found a bit of the history at ftc/gov.  Click here for the link.

The basis for the calculations is so convoluted and complicated that many carriers hire outside
companies (I think they are old retired ILA guys...but don't quote me on that), to file their reports.
It's something which is very difficult to capture from the computer system.
 Here's what is says in the master contract regarding Container Royalty Payments

.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 portby-
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.

This is in addition to the hourly wage paid to the employees, which ain't small
change.

Here is the link to the Master Contract of the ILA which was signed in 2009.   Click here.http://www.ilaunion.org/pdf/MasterContractAndMemorandumOfSettlement.pdf

I'll be posting about it and other things about the ILA over the coming days.

ILA and the Mafia

The ILA has a long history of association with organized crime.   It seems everyone has just
accepted this is the way it is, because they certainly have not cleaned it up, although every once
in a while The Waterfront Commission does something to justify their existence.

This was posted on their web-site.   Click here for the link.

Longshoreman Indicted for Multiple Counts of Perjury Suspended by Commission
August 1, 2012
           The Commission voted to temporarily suspend Dominick Dinapoli's registration as a longshoreman pending an administrative hearing on charges based upon his five count indictment for perjury. Dinapoli has been charged with testifying falsely in a Commission investigation regarding Port personnel associating with an organized crime figure and another career offender. The notice of hearing, approved today by the Commission, charges that Dinapoli violated the Waterfront Commission Act by associating with career offenders, convicted racketeers, and members or associates of organized crime groups, including Mario Gallo (an associate of the Bonanno and Lucchese crime Families), Samuel Santiago (a member or associate of the Latin Kings), and five other career offenders.
           The criminal case is being prosecuted by the Manhattan District Attorney's Office.

A big part of the problem with the contract negotiations which will resume shortly, is too many people
are concerned if they cause the union problems, they will be wearing cement shoes in the river.

This is not to be taken lightly.   I know of  people who were threatened by the ILA.  They gave in.

The negotiations really should be moved out of the NY/NJ area.

           
           

ILA and the Waterfront Commission

Below is part of the letter from USMX (who is negotiating with the ILA).  Apparently the ILA
thinks (or maybe it's true) that all they have to do is threaten to strike and they will get what they want.

What I don't understand is the comment in the second paragraph about the Waterfront Commission
of New York and New Jersey.  What's this all about?   The contract covers all of the US East/Gulf
ports.   Is the Waterfront Commission still influenced by the mafia?   

When we met during the week of August 20th, USMX presented the issues that we believed
were critical to successfully reaching an agreement. Those issues all center around inefficiencies
that have crept into our operations over the years. I’m referring to archaic work rules and
manning practices, and the system of guarantees and overtime pay practices that result in
millions of dollars being paid for time not worked. These inefficiencies are causing many of our
ports to become prohibitively expensive, harming our competitive ability and threatening the
long term viability of our operations. USMX was hopeful that we would receive the same
consideration from the ILA as we had given it on its critical issues. Instead, our presentations
were simply rejected without any consideration, and when management objected to this lack of
consideration, the ILA responded with a threat to strike.

Many of these issues are the same ones cited in a recent report compiled by the Waterfront
Commission of New York and New Jersey. I’m somewhat at a loss to understand why the ILA
would appear to be willing to have an outside agency attempt to force a solution on the parties,
rather than have the parties address the issues in the collective bargaining arena, at the
bargaining table, where they properly belong.

click here for link to complete letter

ILA Wages

The ILA goes back to the bargaining table next week.

The United States Maritime Alliance is the group negotiating with the ILA.  This is a group which
represents the carriers, who pay the ILA.   I don't really know of another industry where the
negotiations are not directly between the employer and the employee, so if you know of an
example, post a comment.   It would really seem more logical to have the ILA paid by the
terminal, and the terminal would charge the carrier for the total cost to work a ship.  But,
that's just silly me talking.

Anyway, the carriers have always given in to the ILA in the past, because, after all it's a big
group and it's difficult for a few carriers to convince all, that they need to take a hardline
position and let the ILA strike.  After all, it would really cause a lot of problems for everyone,
and cost a lot of money.   However, times are tough, and maybe now the carriers will
at least ban together, let them strike, and then pass on the additional costs of diverting cargo to the importers
and shippers.

If I had a contract with a carrier, I would certainly be looking at the "strike clause".

Below is from the web-site of the USMX  (United States Maritime Alliance).
As it is said "nice work if you can get it".   I guess these folks do!

Longshore workers are among the best paid union workers in U.S.

Longshore workers have a superior wage and benefits package that places them among the best paid union workers in the country. ILA members on the East and Gulf Coasts earn an average of $124,138 annually in wages and benefits. In wages alone, they make $50 an hour, more than double the average hourly wage of about $23 earned by all union workers in the United States, according to the U.S. Department of Labor’s Bureau of Labor Statistics.
ILA members also have one of the best healthcare plans in the nation, paying no premiums for family medical, dental and vision coverage and only minimal co-pays.  

click here for link to web-site

What's Up?

Or, as the kids say "wasup?".   Meaning, what is new and different?

In the shipping industry, it's not so much what is new, as everything is staying the same.

Carriers keep saying, "OK, it's going to get better", and it does a little, and then  falls back.

I don't know how long they can hold on, but I have been surprised many carriers haven't been forced
to sell out or close down by now.   I think there are still a lot of investors with money, and with
no other options for a good return, are willing to wait it out with shipping.

And shipping does have very, very, long business cycles.  This is the reason only the ones
with "deep pockets" really last through the decades.  

I guess the biggest news recently is the ILA  (International Longshoremen Association),
which is the union which controls the docks on the East Coast of the U.S., has a new
contract coming up for renewal.  They are now negotiating, and talks recently broke down.

It will be really interesting to see if the carriers have the guts to hold the line.  In the past they
 never did, as they didn't really have any other options to move their cargo.   The ILA has a lot
of power, and even blocked ports in Canada from handling ships which tried to divert..

But now everyone is hurting for money, and the U.S. ports are the most expensive in the world.
That's because the union has not allowed new efficiencies, which would allow reduction in staff.

I don't know if it's still true, but it wasn't that long ago that there was still a union position for "water boy"...
someone who took water to the working longshoremen.   Crazy, huh?

The other item of interest is the price of oil.  It topped $100 the first of the year when everyone thought
the economies were improving (and hedge funds were trading in oil), but then it dropped,  and
then came back up.  It's in the 90's now.  It should really be lower, but there is too much manipulation
in the market.

So, that's wassup.

Hope ya'll  (that is U.S. Southern talk for "you all") are doing well. 

More reports on NY/NJ Waterfront arrests

Below is from New Jersey Star Ledger. They are doing a great job
covering the arrests related to corruption on the NY/NJ piers.

Ex-longshoremen's union official is indicted on waterfront corruption charges
Published: Thursday, December 16, 2010, 7:40 AM

A new indictment of a once-powerful longshoremen’s union leader was quietly unsealed this week, pointing to a growing offensive by federal prosecutors into corruption on the waterfront.

The charges come less than a week after another member of the same union was charged with collecting "Christmas tribute" money exacted from other dockworkers to kick back to the mob.

Albert Cernadas Sr., who served as both executive vice president of the International Longshoremen’s Association and president of ILA Local 1235 in Newark, was accused of shaking down his members under threats of violence, in what was described as a long-running racketeering operation tied to the Genovese organized crime family.

The charges come nearly five years after Cernadas, 75, of Union Township, was removed from the ILA after pleading guilty to corruption charges involving thousands of dollars in union funds being funneled into a pharmaceutical company controlled by organized crime.

But in the new indictment, the government charges a far larger conspiracy dating back more than two decades — alleging that Cernadas put the screws to force cash payments from his members every year around Christmastime by use of "actual and threatened force, violence and fear."

The 52-page indictment, unsealed in federal court in Newark, does not say where the money went, but prosecutors say Cernadas was a known associate of the Genovese family which controlled the New Jersey waterfront. At the same time, other documents recently filed in several related cases spelled out what appeared to be a lucrative extortion racket known as "Christmas tributes" that preyed on ILA members, forcing them to cede part of their pay each year to crime bosses with hooks into the union.

Cernadas’ attorney, Jack Arseneault, declined comment. The U.S. Attorney’s office in Newark also declined to comment, and would not say what sparked its interest in Cernadas or why it kept the charges low key, opting not to make an announcement as it frequently does in such cases.

However, the indictment and other recent criminal complaints suggest a far larger investigation.

Last week, Robert Ruiz, 51, an international representative and delegate of the ILA, was arrested and charged in New York with extortion conspiracy in connection with similar payments.

According to an affidavit filed in the case by Jonathan Mellone, a special agent for the U.S. Department of Labor, members of the ILA were required to provide payments every December, and the payments were then kicked back to the Genovese family.

In connection with that case, the FBI said it dug up nearly $52,000 in cash buried in the backyard of one unidentified union member from New Jersey who went to authorities and said he and others were threatened with the loss of their jobs or their lives if they did not pay up. The union member told authorities the money was to go to Ruiz and it was their understanding the envelopes ultimately went to members of the Genovese family.

Separately, another reputed mobster, Stephen Depiro, was indicted in New York in April on racketeering charges in connection with the waterfront, with court records similarly documenting the holiday payments to organized crime.

In the criminal complaint filed against Depiro, transcripts of phone calls referred to the annual Christmas payments. Investigators said Edward Aulisi, the son of Vincent Aulisi, who became president of Local 1235 after Cernadas left, was caught on tape assuring reputed mob boss Michael Coppola that the tribute money would continue even after Cernadas left, and in fact had doubled.

The payments were the focus of some attention during a special hearing in October by the Waterfront Commission of New York Harbor. Aulisi, whom officials say held a no-show job at Port Elizabeth, was called as a witness but invoked his Fifth Amendment right against self-incrimination. He has not been charged with any wrongdoing.

The indictment against Cernadas says only that he conspired to extort money from ILA members each December, beginning in 1982. The timing of the charges suggest prosecutors were facing a problem with the statute of limitations had they not filed the when they did.

ILA officials in New York said Wednesday Cernadas was no longer with the union and they were unaware of the indictment.

Cernadas, whose son is Al Cernadas Jr., the first assistant prosecutor of Union County, was arraigned Wednesday before U.S. District Judge Susan D. Wigenton in Newark and released on a $1 million bond.

click here for link

On The Waterfront

Things haven't changed much on the NY/NJ Piers.

The only difference is now the Waterfront Commission is reporting some of
the problems.

Here are the last few press releases.

WCNYH

Pier Superintendant Arrested and Charged with Managing an Illegal Bookmaking Operation.

December 9, 2011

Maher Terminal Pier Superintendant Joseph Joel DiCosta was arrested this morning by Waterfront Commission detectives and agents from the US Department of Labor on a federal complaint charging him with managing an illegal gambling business in violation of Title 18 USC Section 1955. The complaint charges that DiCosta ran the illegal bookmaking operation from January 2003 to January 2011 utilizing both internet sites and 1-800 telephone numbers.

The criminal case is being prosecuted by the United States Attorney's Office for the Eastern District of New York.

DiCosta's license as a Pier Superintendant was suspended by the Commission this afternoon pending an Administrative Hearing on the charges.

WCNYH

Genovese Soldier and Checker Plead Guilty in Port Loan Sharking Case.

October 28, 2011

Genovese Soldier Joseph Queli and Checker Nicholas Bergamotto pleaded guilty today before Superior Court Judge Anthony J. Mellaci, Jr. in Monmouth County, New Jersey.

Queli pleaded guilty to Conspiracy to Commit Criminal Usury (loan sharking) and Money Laundering as well as Filing False Tax Returns. Under the plea agreement, Queli will be sentenced to seven years in state prison.

Bergamotto pleaded guilty to Money Laundering and will be sentenced to a term of probation. Bergamotto has been suspended from the Waterfront since his arrest on April 22, 2010. Both Bergamotto and Queli were highlighted in the Commission’s Public Hearings held last year.

The indictment was the result of an on-going investigation by the Waterfront Commission and the New Jersey Attorney General’s Division of Criminal Justice into organized crime in the Port.

WCNYH

ILA Local 1 Trustee and Shop Steward Removed from Waterfront for Theft, Frauds, and Association with Organized Crime

October 25, 2011

By Commission Order, dated October 25, 2011, William A. Vitale, a suspended shop steward at Maher Terminals and a trustee of ILA Local 1, was removed from working on the Waterfront for the theft of $96,582.75 from Maher Terminals, committing frauds in connection with a sworn interview conducted by the Commission, and associating with an associate of the Genovese Crime Family.

On April 28, 2011, in Union County Superior Court, Vitale pleaded guilty to theft by deception (a crime of the 3rd degree). On September 23, 2011, the Court sentenced Vitale to three (3) years probation and ordered him to pay restitution of $96,582.75 to Maher Terminals, forfeit his Waterfront registration, and resign his position with the ILA. Vitale admitted that he lied and caused false time records to be created which resulted in Maher Terminals paying him for hours that he did not work. He also testified falsely during a sworn Commission interview in response to questions concerning his presence in Florida, California, and Aruba, when he was paid for working at the terminal. Vitale also visited in prison Joseph Lore, an associate of the Genovese Crime Family on the ILA Ethical Practices Counsel’s Barred List, who was convicted of charges pertaining to embezzlement from ILA Local 1588 and using intimidation or force against a witness. Both Vitale and Lore were subjects of testimony during the Commission's 2010 Public Hearings pertaining to "no show" jobs and organized crime associations on the waterfront.

The case was investigated by the Waterfront Commission and prosecuted by the New Jersey Attorney General's Division of Criminal Justice.

WCNYH

Longshoreman suspended by Commission after being arrested for bookmaking on behalf of the Gambino Family

October 20, 2011

Longshoreman Michael Bolger and ten others have been arrested and indicted on charges of Enterprise Corruption, Promoting Gambling in the First Degree, and Conspiracy in the Fifth Degree. The charges allege that Bolger and his co-defendants operated an illegal gambling ring on behalf http://www.blogger.com/img/blank.gifof the Gambino Crime Family in parts of New York and New Jersey from 2010 to 2011. Bolger has been suspended by the Commission pending an administrative hearing to determine whether his registration as a longshoreman should be revoked. The Organized Crime Task Force of the Office of the New York State Attorney General is prosecuting the case.

click here for link to Waterfront Commission web-site

ANOTHER dockworker killed

I find it difficult to believe everyone is just accepting
that these are "accidents".

From The Journal of Commerce

Saturday accident marks the second death on the Philadelphia waterfront in eight days

A longshoreman fell to his death in a breakbulk ship Saturday in the second fatal accident in eight days on the Philadelphia waterfront.

Vernon Knight, 54, a member of International Longshoremen’s Association Local 1291, fell from a tween deck into a ship’s hold, said Robert Palaima, president of Delaware River Stevedores.

The ship, the Rickmers New Orleans, was handling project cargo at Tioga Marine Terminal. Palaima said the accident is under investigation.

The fatal accident followed the unrelated deaths of two dockworkers Aug. 12 at Philadelphia and Newark, N.J. In those accidents, Carmen “Chuckie” Dirago, a member of Local 1291, was killed at Philadelphia’s Packer Avenue Marine Terminal and Don Denia, a member of Local 1804-1, was killed at Maher Terminals at Elizabeth, N.J.

Knight was the 15th ILA dockworker killed in a work accident in the last four years.

Open Letter from New York Shipping Association

I have not followed what happened with this pending legislation, which would
allow ease of hiring of dock workers. This open letter supporting legislation
was written in April of 2011. If anyone can give an update on this, please
leave a comment.

New York Shipping Association Inc.
333 Thornall Street, Suite 3A
Edison, New Jersey 08837
Telephone: 732-452-7800
Fax: 732-452-6315
www.nysanet.org

.
The Honorable Brian M. Kolb
NYS Assembly Minority Leader
933 Legislative Office Building
Albany, NY 12248

The Honorable Andrew M. Cuomo
Governor of New York State
NYS State Capitol Building
Albany, NY 12224

The Honorable Dean G. Skelos
NYS Senate Majority Leader
909 Legislative Office Building
Albany, NY 12247

The Honorable Sheldon Silver
NYS Assembly Speaker
932 Legislative Office Building
Albany, NY 12248

The Honorable John Sampson
NYS Senate Minority Leader
409 Legislative Office Building
Albany, NY 1224

April 2011

Dear Governor Cuomo and New York State Senate and Assembly Members:
You will soon have before you for consideration Bills S-4668 (Lanza/Hassell-Thompson) and A-7155 (Cusick/Farrell) which seek to cure a serious flaw in the Waterfront
Commission Act. This flaw impedes the ability of employers to recruit and hire new employees who are necessary to sustain and grow the business of cargo handling, which
is so vital to the economic well-being of our region.
This legislation is NOT an attempt to eliminate the role or necessity of the Waterfront Commission; but it is a rather prudent and responsible action which ensures port
employers will have a sufficient number of employees when they need them – not when an agency which has no economic investment in the management of the port or its
activities decides they are warranted.
S-4668 and A-7155 are intended to repeal Section 5-p of the Waterfront Commission Act, N.Y. Unconsol. Laws § 9920 (McKinney 2002), in the New York State legislature.
Section 5-p was enacted in 1966 in response to a provision in the Collective Bargaining Agreement between the New York Shipping Association and the ILA which provided
a Guaranteed Annual Income to workers displaced due to the introduction of new technology into the marine terminal environment. At that time, management and labor
agreed that keeping the register open did nothing to further our competitive position, and agreed that the “controlled register statute” made sense. Today, the Guaranteed
Annual Income program no longer exists and ironically, it is now the constraints placed on employers by the Waterfront Commission pursuant to Section 5-p that threatens
the competitiveness of the Port.
There are 361 ports in the United States and the Port of New York and New Jersey is the only port in the Nation where employers are denied their prerogative to determine
when to add skilled workers to their payrolls and when to replace workers lost through attrition, retirement, or illness. Currently the Commission must approve how many
workers can be hired and from where they must be recruited.
New York Shipping Association, Inc., on behalf of the port employers has repeatedly stated both privately and publicly that we strongly support the law enforcement, crime
fighting and licensing roles of the Commission. However, we who responsibly oversee the business of maritime commerce are better suited to determine the manpower level
necessary to maximize the economic contribution of the Port to the quality of life of the tens of millions of people who reside within our service area.
With the impending completion of the Panama Canal Expansion and the reconfiguration of the Bayonne Bridge, the Port of New York and New Jersey will be uniquely
positioned to handle significantly more import and export cargo. Ports all along the East Coast are preparing to compete for the increase in cargo coming directly to the East
Coast. We are hampered by an antiquated process for hiring longshore workers and are put in a competitive disadvantage. This antiquated process must be changed.
The State of New Jersey took legislative action in 2007 to amend Section 5-p, recognizing that the Waterfront Commission should not maintain a role as a commercial
market regulator long after the guaranteed annual income program has ended. The Port of New York and New Jersey is the largest and most productive port complex on the
East Coast and supports more than 270,000 port related jobs in the northeast. The greater New York and New Jersey region must be permitted to reap the full benefit of
the economic engine that is the Port of New York and New Jersey. Amending Section 5-p will not alter the law enforcement, investigatory or licensing functions of the
Waterfront Commission.
We urge you to support the repeal of Section 5-p by voting in the affirmative on S-4668 and A-7155. More information about Section 5-p is available and we would be happy
to discuss this further with you in greater detail. Your support for this measure will demonstrate a commitment to a stronger economy for the State of New York.
Sincerely,
Joseph C. Curto
President

Two Longshore Workers Killed last Friday

Call me cynical, but I find it strange there were 2 longshore workers
killed in "accidents" on the same day, one in NJ, and one in Phili.

Looks to me like there is something behind this besides just bad
workplace practices.

I hope I am wrong, but I trust the FBI or someone is looking into
these deaths.

From The Journal of Commerce, Aug. 15, 2011

Two longshore workers were killed in work accidents at Packer Avenue Marine Terminal in Philadelphia and Maher Terminals in Port Newark, N.J.

Carmen “Chuckie” Dirago, a member of International Longshoremen’s Association Local 1291, was killed in Philadelphia when a tractor-trailer backed into him, according to the Philadelphia Inquirer.

Don Delia, a member of ILA Local 1804-1, died in the Newark accident. Details of the accident were not available.

ILA President Harold Daggett extended condolences to the victims’ families and directed George Lynch, an ILA safety director, to investigate. Friday’s deaths raise the number of ILA members killed in work accidents in the last four years to 14.

“These deaths of our two ILA beloved brothers demonstrates why we must be vigilant with safety and put it at the top of priority list,” Daggett said. “It’s why the ILA wants top-level training, why we want accurate container weight measurements. Brother Dirago and Brother Delia’s deaths will not be in vain and, in their memory and inspired by them, we will work to make certain these accidents don’t happen again.”