All hands work to keep Maersk

December 23, 2008 by senatormcconnell

Legislators join union, SPA in talks with company

In a rare move, union leaders and State Ports Authority officials came together Monday afternoon with state legislators and Maersk Line executives in an effort to salvage the company’s business in the Port of Charleston.

SPA officials plan to “get creative” and work toward a mutually acceptable solution over the next few weeks, according to the agency’s chief executive officer The SPA’s board of directors met by teleconference later in the afternoon, with one member even phoning in from a tropical vacation, to hash out the Maersk situation.

After meeting with all parties for more than two hours at the Maritime Association building on Morrison Drive, Sens. Glenn McConnell, R-Charleston, and Larry Grooms, R-Bonneau, emerged smiling.

“Here in this season of light and miracles, there is hope in the state of South Carolina,” McConnell said.

Maersk, the world’s largest container carrier and the port’s biggest customer, announced Thursday that it would leave Charleston. The Danish company, which accounts for 20 percent of Charleston’s container volume, wanted the International

Longshoremen’s Association to allow it to break its contract and move into a part of the Wando Welch Terminal in which SPA employees would perform work historically handled by organized labor.

The three maritime unions, in a unanimous vote earlier this month, rejected that proposal.

Maersk officials announced that the shipping line would pull out completely by the end of its contract on Dec. 31, 2010, and that 25 percent of its business would leave within the next few months.

Speaking for the first time since Maersk’s announcement, ILA Local 1422 President Ken Riley said after Monday’s meeting, “Everyone better understands our position.”

Flanked by John Alvanos, president of the ILA Local 1771 Clerks and Checkers, and Leonard Bailey, president of ILA Local 1422-A Maintenance Workers, Riley reached into his coat pocket and tapped his fingers against a two-page press release defending the ILA position. He said that document did not apply after Monday’s meeting.

“What happened today is a first great step toward getting it resolved,” Riley said.

The high-powered gathering included three Maersk representatives, four union officials, McConnell, Grooms and state Sen. Hugh Leatherman, R-Florence, SPA Chief Executive Officer Bernard S. Groseclose Jr. and SPA government relations manager Barbara Melvin.
A Maersk container ship loads and off-loads freight at the Wando Terminal. Maersk announced last Thursday that it would pull out of Charleston completely by the end of 2010

A Maersk container ship loads and off-loads freight at the Wando Terminal. Maersk announced last Thursday that it would pull out of Charleston completely by the end of 2010.

Groseclose said after Monday’s meeting with his board that the agency would consider other options for the shipping line.

“We’re going to explore some alternatives,” he said. “We’ve been thinking about some things listening to comments from (Maersk) and from the union.”

He and others in attendance declined to elaborate on possible alternatives, and the SPA board immediately went into closed-door session during its teleconference. The agency will meet with the legislators, the ILA and Maersk again soon to discuss options, according to Grooms.

“There’s no date certain when to reconvene, but this is something that needs to be settled fairly quickly,” he said. Grooms chairs the Senate Transportation Committee and has been a leader in negotiating with the shipping line.

“One of the things that has changed is the key players sat at the table and looked at each other and shared their perspectives,” he said. “All sides now know each other’s perspective.”

Though the situation arose a year ago and became public more than two months ago, Riley said the ILA had been pinned in the middle until Monday.

“Up until now there had been no negotiations including us,” Riley said. “By the time it gets to us, it’s an ultimatum.”

He said Maersk’s announcement shifted the situation from pointing fingers at the ILA to preparing for a potential disaster with economic implications for workers across the waterfront, from tug boat captains to harbor pilots to law enforcement.

“Now that it gets to crisis point, everyone’s concerned,” Riley said.

By Allyson Bird
The Post and Courier
Tuesday, December 23, 2008

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