ILWU has “productivity” problems

Logistics managers have another reason to be concerned about upcoming U.S. West Coast dockside labor negotiations, say industry analysts.

By ·

Logistics managers have another reason to be concerned about upcoming U.S. West Coast dockside labor negotiations, say industry analysts.

According to SeaIntel Maritime Analysis in Copenhagen, the International Longshore and Warehouse Union (ILWU) will fight hard to protect and increase compensation that is far greater than that earned by dockworkers anywhere else in world.

At the same time, however, productivity remains a laggard.

“Such relatively high wages would seem justifiable, if the longshoremen’s’ productivity translated into relatively lower costs and higher profits for the ports, terminal owners and shipping line,” says Intel.

Analysts add that productivity was one of the issues raised by employers in the last round of negotiations between ILA (International Longshoremen’s Association) and USMX (US Maritime Alliance).

Indeed, is seems likely that the Pacific Maritime Association’s (PMA) will also bring this to the fore.

On average, an ILWU worker earns $98,603 a year including two and a half weeks of vacation. At the same time, ILWU workers receive a benefits package costing just nearly $5,000 per employee. This package includes fully paid health care.

Intel analysts note that a significant part of the longshoremen’s wages are the so-called royalties for each container handled, and these royalties constituted a crucial point in the negotiations six months ago when a strike nearly shut down 14 ports on the U.S. East Coast last year.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Container · Logistics · Shipping · All Topics
Latest Whitepaper
Maximizing Your Sales Team’s Effectiveness
Companies need to examine how to restructure their sales team to respond to different customers and subsequent buying behaviors and preferences.
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Make Your Products Smarter in the Supply Chain with the IoT
This webinar explores how temperature-sensing smart labels and inexpensive NFC tags are being used to extend product safety and efficiency beyond the shipping dock while also building a communication bridge to your customers.
Register Today!
EDITORS' PICKS
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...