ILWU members at OIA Global ratify first contract
Members of ILWU Local 63 OCU unanimously ratified their first collective bargaining agreement with OIA Global (OIA) on December 3rd. This is the first-ever freight forwarding company be unionized.
Fight for the first contract
The agreement was reached after eight months of difficult negotiations, according to Local 63 OCU President John Fageaux. OIA hired anti-union law firm, Littler Mendelson, to represent them during negotiations.
Big win on health insurance
In the contract, workers won major improvements to wages, benefits, and conditions. Under the new agreement, workers will receive full employer-paid medical. Previously, workers contributed up to $500 a month towards their insurance premium, plus hefty co-pays when visiting a doctor, according to Fageaux.
“One of our main goals was to reduce the amount members were paying for their health care and we were able to do that,” Fageaux said. Not only do workers no longer have to contribute to their health premiums, but they are also provided with a preloaded Health Saving Account card to cover any out-of-pocket expenses and prescription costs, Fageaux explained.
The contract also gives employees eight additional vacation days per year and there is a no-layoff clause for the duration of the three-year agreement.
Wage increases|
Workers received significant wage increases. Before the contract, wage rates varied considerably so workers received wage increases ranging from 10-50 percent plus a 5 percent increase in years two and three. Workers also receive a $10,000 ratification bonus. “It’s a great first contract and we plan on building on it three years from now,” Fageaux said.
Team effort
“I want to thank the International Organizing Department—Organizing Director Ryan Dowling and Lead Organizer Carlos Cordon did a fantastic job,” Fageaux said. “We had great support from International Vice President Bobby Olvera, Jr. and the International Organizing Committee.”
“We are all so very happy and extremely proud to be the first freight forwarders to unionize,” Local 63 OCU member Melissa Pangelinan Hailey. “The process was a bit of an emotional rollercoaster. With the support and guidance from the International Organizing Department, John Fageaux, and Local 63 OCU Vice President Dawn Feikema, we knew we had a powerhouse behind us. The ratification of our first contract is a huge victory for us!
“Having ratified in December, Christmas came early this year. We are proud to be a part of the ILWU family.”
“We went through some trials, but the ILWU was always encouraging and had our backs,” added Local 63 OCU member Joan Utuone. “Thank you, ILWU family, for all the support from the initial introduction to the contract.”
“Bringing this first contract home was a great team effort,” said ILWU International Vice President Bobby Olvera, Jr. “But it all started with the courage of the workers at OIA who took a risk to be the first to unionize in the freight forwarding industry.”
Three-year fight
The unionization effort began approximately three years ago when an OIA employee reached out to Local 63 OCU President John Fageaux. In February of 2021, the National Labor Relations Board certified the union ratification vote by workers at the Southern California office of OIA Global, after the NLRB denied the employer’s challenge to the election.
The job functions that OIA workers perform are very similar to the job functions performed by Local 63 OCU members in their duties working for the shipping lines on the terminals.
“Freight forwarding companies work as a shipping line but they don’t have ships or a terminal. OIA workers process bills of lading, handling rail billing and those things associated with the movement of cargo,” said Fageaux.