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PMA details ILWU contract offer in attempt to avert lockout
Bill Mongelluzzo, Senior Editor | Feb 04, 2015 6:40PM EST
Pacific Maritime Association CEO James McKenna on Wednesday released details of the employers’ contract offer to U.S. West Coast longshoremen, a comprehensive offer the PMA hopes will head off the need for a lockout or strike by the International Longshore and Warehouse Union during negotiations that appear to be at an impasse.
The surprising PMA offer includes an agreement by employers to continue paying 100 percent of dockworkers’ medical costs, including the Cadillac tax under ObamaCare. The employers’ proposal would increase annual pension payments to $88,800 a year, in a contract employers propose will run for five years.
McKenna has undoubtedly surprised a number of industry observers by revealing that employers have agreed to pay 100 percent of the Cadillac tax in the Affordable Health Care Act. He told the JOC Group’s Trans-Pacific Maritime Conference in March 2014 that the provision will come at a cost of $150 million a year, and that the ILWU didn’t want to pay it and employers couldn’t afford to pay it. The tax is scheduled to take effect on Jan. 1, 2018.