The Shipping Association of Jamaica (SAJ) and unions representing its stevedores have signed a historic four-year wage agreement. This is the first time an agreement with such a long duration has been signed on the Port of Kingston.

The agreement was negotiated during meetings of the Joint Industrial Council (JIC) for the Port of Kingston. The employees were represented by the Bustamante Industrial Trade Union (BITU) and the United Portworkers and Seamen Union (UPSU) while the SAJ represented employers in the shipping industry. The new heads of agreement covers the period November 2012 to October 2016.

Traditionally, wage agreements between the SAJ and the unions were for two-year periods. However, the negotiators on both sides said that their discussions took into account the state of the Jamaican economy, the recent International Monetary Fund agreement, the country's reliance on a growing shipping industry, and the widening of the locks in the Panama Canal as well as plans for the establishment of a Global Logistics Hub.

The news about the historic agreement was welcomed by several ministers of Government and the chairman and chief executive officer (CEO) of the Port Authority of Jamaica.

Transport and Works Minister Dr Omar Davies said that the new agreement is of significant for several reasons.

"The first is that its duration will provide the Port of Kingston with the requisite industrial peace and stability to plan for growth and expansion over the medium term. At the same time, it demonstrates that the workers and their union representatives have fully grasped the challenges which face not only the shipping industry but moreso the country."

CRITICALLY IMPORTANT

Minister of Labour and Social Security Derrick Kellier said the new agreement covering the four-year period November 2012 to October 2016, is of "critical importance to the overall development of the Port of Kingston, which constitutes an important part of the economic life and development of Jamaica. It is, without a doubt, of strategic importance to the overall success of the Jamaican economy".

PAJ chairman and CEO, Noel Hylton, in congratulating the SAJ and the trade unions, said that the signing of this agreement is "a remarkable achievement. I am fully aware of the tremendous work and effort which underpinned the discussions and guided the harmonious negotiations. The historic agreement cements the Port of Kingston's longstanding reputation as one of the most stable ports globally".

He added: "I believe it is noteworthy to mention that there has been no fundamental labour dispute at the port in over 35 years, which is a commendable feat. Undisputedly, the Port of Kingston enjoys the best labour-relations environment in Jamaica and I must express my gratitude to all the stakeholders who have contributed to the maintenance of this status quo."

The negotiations were not easy and both sides argued very strongly for nearly a year to preserve positions which they felt were critical to the interests of the groups they represent. In the end, both management and the trade unions sought to achieve a balance that would send a signal to the global shipping community and the Jamaican Government and the business community that the stakeholders at the Port of Kingston were serious about maintaining the competitiveness of the port.

Alvin Sinclair, vice-president of the BITU, said the four-year agreement was the right thing to do considering the international situation that faces the industry, particularly the opening of a widened Panama Canal in 2015.

"It will allow Jamaica to position itself to take advantage of the benefits that will likely flow from the Panama Canal. In addition, it will send a signal that our port is stable and that industrial relations are very good," Sinclair said.

He added that, "the workforce is expecting that, whatever benefits accrue from this agreement, it will be shared through incentive schemes and other benefits".

LOCAL MATURITY

Roosevelt Walker, union officer for the UPSU, expressed satisfaction that the agreement was reached at the local level without outside assistance. "I think this reflects the maturity of the Joint Industrial Council. This four-year agreement provides a stable and predictable environment at the Port of Kingston," Walker said.

The Shipping Association's general manager, Trevor Riley, who served as chief management negotiator, said that management and the unions have realised for a long time that they have a shared interest in the prosperity of the port and that this agreement will serve to position the port for its expansion into a logistics hub.

The JIC was established on August 26, 1952 during a time of industrial unrest in the shipping industry and is the first and oldest of its kind in Jamaica and the Caribbean.

Since its establishment, members of the JIC have worked assiduously to improve working conditions at the Port of Kingston and to introduce modern technology to enhance Kingston's competitiveness.

Several ministers, the president of the Port Authority of Jamaica, and industry partners have reacted by issuing messages that are included in this feature.