Subscribe to our free, weekly email newsletter!



ILWU has “productivity” problems

By Patrick Burnson, Executive Editor
April 28, 2014

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Carloads headed down 2.5 percent annually to 286,660, and intermodal containers and trailers remained on a growth path, up 2.3 percent to 270,952.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.

Article Topics

Blogs · Container · Logistics · Shipping · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA