http://jacksonville.com/business/2010-09-14/story/longshoremens-union-strikes-deal-hanjin-shipping-co (http://jacksonville.com/business/2010-09-14/story/longshoremens-union-strikes-deal-hanjin-shipping-co)
QuoteBy David Bauerlein
The planned Hanjin cargo terminal in Jacksonville cleared a major hurdle after the International Longshoremen’s Association agreed with Hanjin on manning levels at the terminal when it opens in 2014.
Hanjin intends to deploy a high level of automation using remote-controlled equipment. That will cut the number of union workers in half compared to a traditional cargo terminal, said Romia Johnson, president of local 1408.
But Johnson and other union leaders said Tuesday a new cargo terminal with fewer union members is better than no terminal at all, particularly since automation is increasing around the world.
“That’s what the future is going to be so it’s great for Jacksonville to get in on the ground floor,†said Charles Spencer, executive vice president for the South Atlantic and Gulf Coast District of the ILA. “Economically, it’s going to be a great windfall for the city because there are going to be a lot of jobs.â€
“The technology is coming,†said Daniel Teague, president of Local 1593. “It’s going to come with or without you.â€
Members of union locals 1408 and 1593 voted Monday night in favor of the manning levels.
Spencer said the terminal will create work for several hundred ILA members when it is running at full capacity. The amount of work will hinge on how many ships and cargo containers flow through the terminal, which can handle up to 750,000 containers a year.
Beyond the union-represented workers, the terminal will spin off other jobs such as truck drivers and warehouse workers.
Hanjin, based in South Korea, signed an agreement in December 2008 to operate a cargo terminal on land owned by JaxPort at Dames Point. The agreement contains a clause that Hanjin can walk away from the agreement if it is unable to strike a labor agreement “reasonably satisfactory†to Hanjin.
In late 2009, Hanjin cast doubt on whether it would be able to reach an agreement. The JaxPort board responded by holding off on awarding a contract for design of the cargo terminal, a decision that came on the heels of a letter from high-ranking Hanjin executive G.S. Choi stating Hanjin would not “spend any more time or resources on this venture.â€
But both sides returned to the bargaining table. In a letter sent Tuesday to JaxPort, Choi said Hanjin “is excited to move forward†with design and construction of the terminal.
“Despite facing numerous obstacles such as the global financial crisis, this terminal stands as a testament to what is possible when negotiations are conducted in good faith,†Choi wrote in the letter.
The JaxPort board has not yet scheduled a vote for awarding the contract to design the terminal. It will be built on riverfront land now occupied by the cruise terminal, so proceeding with design will require JaxPort to decide on an alternative location for cruises. The authority already owns land in Mayport but the staff has been considering other sites.
Hanjin’s terminal would be built next to the TraPac terminal that opened in January 2009. Both terminals are geared toward handling cargo that comes from Asia.
david.bauerlein@jacksonville.com, (904) 359-4581
JPA better start thinking rail - REAL SOON! Remember the battle cry, "Jaxport needs a railroad yard..." Sorry Martha but Jaxport needs a RAILROAD owned and operated from downtown to Blount Island.
While we're thinking PROGRESS, why not a Cecil Field - Westlake - JIA - Hanjin/Blount Island belt railway under the mega power transmission lines?
OCKLAWAHA
Is it possible to estimate how many jobs this will create?
Yay, now we can import more crap from Asia!
Quote from: downtownjag on September 15, 2010, 10:24:03 AM
Is it possible to estimate how many jobs this will create?
Is it possible that this could create any jobs when we are already at a loss? It just seems really strange to celebrate this kind of thing simply because it perpetuates the lack of US manufacturing jobs which would be much greater in number compared to the logistics jobs that will be "created."
You must be a blast at parties... ::)
Quote from: JC on September 15, 2010, 12:18:06 PM
Quote from: downtownjag on September 15, 2010, 10:24:03 AM
Is it possible to estimate how many jobs this will create?
Is it possible that this could create any jobs when we are already at a loss? It just seems really strange to celebrate this kind of thing simply because it perpetuates the lack of US manufacturing jobs which would be much greater in number compared to the logistics jobs that will be "created."
Are you complaining about the fact that the US is moving away from a manufacturing based economy or just complaining in general? I am very pleased that Jacksonville will be picking up Hanjin; ports seem to work OK for Miami, Savannah, etc...
Yea we lose manufacturing jobs because our population is more educated and skilled than ever, and as a result we are becoming more and more of a service oriented economy. Manufacturing = blue collar, = lower average wages, = more prevalent in developing and semi-developed countries.
Also, I am extremely happy about this news, but I thought an agreement was already reached??
Finally, the whole debate that has raged on for years between the ILA and the port/progress has made me despise unions even more. If I had my way, I would keep almost all labor laws(obviously), but ban unions. Imho they are hardly necessary anymore and are just used as giant political tools now anyway. Go ahead and scream and yell at me, but they are not good for the overall welfare of our country. Their purpose was served when they were necessary, and now they have become an unecessary evil.
QuoteAlso, I am extremely happy about this news, but I thought an agreement was already reached??
The deal Hanjin struck with JaxPort was contingent upon an agreement with the longshoreman union... which has been ongoing until now(Hanjin even called the union's bluff earlier in the year). The terminal's opening has been pushed back b/c of the economy and partly due to the holdup with the labor agreement. Next up is selecting the firm to design the terminal, relocate Carnival, dredge the canal again, and fix the navigation issue at Mile Point.
JaxPort has a lot of work to do for whomever the new director will be. This is a crucial time for the port's future.
Quote from: BridgeTroll on September 15, 2010, 12:47:46 PM
You must be a blast at parties... ::)
I am, just invite me, you will see!
Quote from: downtownjag on September 15, 2010, 01:02:41 PM
Are you complaining about the fact that the US is moving away from a manufacturing based economy or just complaining in general? I am very pleased that Jacksonville will be picking up Hanjin; ports seem to work OK for Miami, Savannah, etc...
Moving away from a manufacturing economy at what cost and to whose benefit? And no, I am not complaining in general, what does that even mean?
Quote from: simms3 on September 15, 2010, 01:17:35 PM
Yea we lose manufacturing jobs because our population is more educated and skilled than ever, and as a result we are becoming more and more of a service oriented economy. Manufacturing = blue collar, = lower average wages, = more prevalent in developing and semi-developed countries.
Also, I am extremely happy about this news, but I thought an agreement was already reached??
Finally, the whole debate that has raged on for years between the ILA and the port/progress has made me despise unions even more. If I had my way, I would keep almost all labor laws(obviously), but ban unions. Imho they are hardly necessary anymore and are just used as giant political tools now anyway. Go ahead and scream and yell at me, but they are not good for the overall welfare of our country. Their purpose was served when they were necessary, and now they have become an unecessary evil.
Have you not looked out your window recently? There are clearly not enough service sector jobs to go around (unless you count mcdonalds) and the manufacturing jobs of yesterday paid well enough to keep a home and put food on the table, save some and go on vacation.
LOL, how do you ban a union? A union is simply an act of free association, free speech and self determination. Tell me, are you prepared to throw the constitution in the trash? I will agree though, in their modern incarnation they are often corrupt however it is far more often that capitalist elements that cause this corruption.
If there were no unions employers would slowly go back to treating workers especially trades people like chattel. This is displayed in the way undocumented construction workers are treated in most cases.
You make excellent points JC.
A nation that manufactures nothing is dependent upon those who do.
Don't we already owe China close to our GDP? (I know it's not a Chinese company)
We want cheap goods. China supplies them.
It will come home to roost. What happens then?
BH JC It would be so easy to change . Slowly raise the tariffs to a percentage of what other counties charge us. Use the fair tax or VAT tax plan and you would bring so much of our money home. A few simple steps could counter act the damage done by Regan's trickle down economics and Clinton's NAFTA.
Quote from: JeffreyS on September 16, 2010, 05:47:55 PM
BH JC It would be so easy to change . Slowly raise the tariffs to a percentage of what other counties charge us. Use the fair tax or VAT tax plan and you would bring so much of our money home. A few simple steps could counter act the damage done by Regan's trickle down economics and Clinton's NAFTA.
I can definitely get my head around how the Fair Tax could repatriate dollars to our shores, but not so sure about a VAT.
The Fair Tax is essentially a tax on foreign manufacturing that doesn't exist now. No income/corporate taxes here but sales tax on all goods and services. You buy widgets from China, they are taxed at the same rate as domestically produce goods. The wage disparity would still exist, which is a much tougher nut to crack. I suppose tariffs could be used, but I would be wary of politicians who would be able to choose which products/sectors/nations (donors) could be granted exclusions from tariffs.
The VAT helps the domestic agenda because when the companies export goods the taxes are rebated back to the companies to offset tariffs and over border taxes. VAT is not my first choice it like our income tax is intended to be complicated and convoluted for the sake of corruption and hiding how much people are paying.
Tariffs should be enforced on things readily produced here. We went from about 20% on most goods pre 1980 to less than 2% now.
Quote from: Ocklawaha on September 15, 2010, 10:08:14 AM
JPA better start thinking rail - REAL SOON! Remember the battle cry, "Jaxport needs a railroad yard..." Sorry Martha but Jaxport needs a RAILROAD owned and operated from downtown to Blount Island.
While we're thinking PROGRESS, why not a Cecil Field - Westlake - JIA - Hanjin/Blount Island belt railway under the mega power transmission lines?
OCKLAWAHA
Hey Ock,
I know what is holding up the rail upgrades for JaxPort.
Silly as it sounds, it is actually tied up in an argument between FDOT and Amtrak!
FDOT wants to buy some CSX ROW through Orlando for a commuter rail operation. Trouble is, for CSX to sell it, they want a liability waiver. Amtrak, which uses that ROW, objects to any liability waiver provision because then they would have to go and increase their liability package to protect them from accidents.
It just so happens that FDOT wants to pay $35 million for that ROW. It just so happens that CSX is quoting $35 million for the JaxPort rail upgrades. CSX has agreed to take the $35 Million that FDOT would pay and immediately apply it to the JaxPort project.
So it went to the Florida Legislature and Amtrak lobbied against it unless FDOT provided some kind of liability coverage for them. Naturally FDOT declined. Amtrak then made a political threat saying that if FDOT goes through with the sale, they would cancel all Florida Amtrak service due to inadequate liability protections.
You can imagine that made some people in Tallahassee very upset.
The appropriation didn't make it to a vote so that cooler heads could prevail. After the HSR Obamacash was announced, Amtrak agreed to come back to the table and unless something has happened since, they are working on a deal that makes everyone happy.
So JaxPort Rail is a work in progress. CSX clearly supports it. It is just tied up in that little thing called politics.
Somebody somewhere just did not get their cut! Glad to hear this is still moving forward!