Posts tagged railroad industry
Union Gets Big Pay Raise at Inefficient West Coast Ports
June 21, 2023 // The disruption tactics the ILWU has been using over the past few months to gain leverage in negotiations appear to have hurt its own members this year, with paid work hours down 25 percent through April 14 compared to the same period last year. That’s partly due to shippers choosing other ports and partly due to dockworkers working less on union orders. Common work actions include assigning fewer workers and slowing down the pace of work. The JOC said that cranes at the port of Seattle–Tacoma went from 25 container moves per hour to fewer than ten. As Peter Tirschwell argued on June 6 in the Wall Street Journal, by delaying negotiations for as long as it did, the ILWU might have missed an opportunity for a bigger pay raise. Ocean carriers earned extraordinary profits due to soaring container rates in 2021 and 2022, but those rates came back down to Earth at the end of last year and are largely back to normal now. And the constant uncertainty every time a West Coast contract expires contrasts with the relative ease with which the International Longshoremen’s Association, which represents East Coast dockworkers, has come to contract agreements for decades. The delay-and-prolong approach of the ILWU helps encourage shippers to go elsewhere, leaving less demand for longshore labor on the West Coast.