3 Causes Why the ILWU Will not Strike
As anticipated, the ILWU contract expired this week with no substitute contract having been negotiated between the ILWU and the Pacific Maritime Affiliation (PMA).
Earlier than you get too apprehensive, it is best to know that it’s not anticipated for a brand new contract to be reached earlier than the previous one expires. It’s principally frequent observe to permit the contract to run out with out making a brand new deal with regards to negotiations between the ILWU and PMA.
In fact, as soon as the purpose of longshoremen working with no contract is reached, the possibilities of slowdowns and stoppages improve.
The more than likely factor that can hinder a brand new contract being signed rapidly in these negotiations is a query of well being care advantages. Or maybe I ought to say well being care charges as ILWU members may very well be taking a look at paying a portion of their well being care prices due to charges to be applied by Obamacare. To seek out out extra about that, you possibly can learn:
What Does Obamacare Have To Do With Worldwide Transport Stability?
May this challenge be large enough to trigger a strike? There are some who fear it can come to that.
If the Nationwide Retail Federation is appropriate in its numbers, such a strike could be staggeringly dangerous for the U.S. economic system:
The Nationwide Retail Federation lately issued a examine exhibiting if there was a West Coast port shutdown, it will value the economic system as a lot as $2.5 billion a day.
The examine confirmed {that a} five-day stoppage would scale back the U.S. gross home product by $1.9 billion a day, disrupt 73,000 jobs and price the common family $81 in buying energy.[1]
I don’t declare to have particular entry to or data of the closed negotiations between the ILWU and PMA, however I don’t imagine the ILWU will strike.
Listed below are 3 causes I don’t assume the ILWU will strike.
Provide Chain Digest experiences:
The West Coast ports are accountable for nearly half of all US maritime commerce, together with greater than 70% of imports from Asia. Nonetheless, West Coast ports’ share of US transport commerce quantity fell to 43.5% in 2013 from 48.% in 2008, even earlier than the looming influence of the Panama Canal enlargement. That aggressive strain is nudging administration and labor towards an amicable settlement.[2]
Hanging now may very well be expensive by way of WC ports’ competitiveness. Not talked about within the above quote is that US WC ports have additionally misplaced some market share to Mexican and Canadian ports.
Hanging would truly put many ILWA jobs in peril.
This may nearly be put within the “no information is sweet information” class.
The negotiations aren’t precisely open for us to see how they’re going, however when issues get heated in dockworker union negotiations, the phrase tends to get out.
The experiences which have been circulating all appear to point calm talks between the ILWU and PMA with each events working towards an amicable decision.
How massive of a success would West Coast ports work stoppages be for the US economic system? 1.9 – 2.5 billion {dollars}?
Neither the PMA nor the ILWU wish to be accountable for such a success on the economic system.
This is able to particularly be a PR nightmare for the ILWU, contemplating its union members are “amongst a number of the highest-paid blue-collar staff in the USA with yearly wages hovering round $100,000.”[3]
That financial strain has been heard by way of many public voices. Past the shouting that may almost be deafening within the case of a strike, financial strain would seemingly trigger the Taft-Hartley Act to be enacted, ending any strike and rendering it reasonably ineffective.
Regardless that I don’t assume we’ll see any ILWU strike, we’ll be conserving a detailed eye on the scenario.
What are your ideas?
How seemingly do you assume an ILWU strike is? Share your ideas on the topic within the feedback part under.
