LA/LGB port strike - union clerical workers, not longshoremen

[Tradd]

You might not have heard about the LA-LGB port strike, but it's loomingly very large in my world (due to job as customs broker and import side at freight forwarder). LA-LGB handle 40% of the containers into the U.S.

http://www.huffingtonpost.com/2012/12/01/la-port-strike-slows-commercial-activity_n_2224158.html

http://abclocal.go.com/kabc/story?section=news/local/los_angeles&id=8904117

http://www.latimes.com/business/la-fi-ports-strike-20121201,0,4917459.story

The LA-LGB Harbor Employers: http://harboremployers.com/web/news/latest/

It's the clerical workers union, not the longshoremen - clerical workers who make $75,000-90,000 a year on average. The Huffington Post, and other media outlets, have the annual pay incorrect. I have access to industry publications (with articles locked behind subscriber passwords) that give correct figures on the annual pay. Medical benefits are very generous and at no cost to the clerical union members. They also get 11 weeks vacation a year. I'm really skeptical about the claims of outsourcing. Union members include not only the port clerks, but also those at the ocean carrier offices in LA (it's a really odd situation that exists nowhere else in the country for the carrier's offices). When the clerical union set up pickets, then the ILWU (longshoremen's union) refused to cross the lines.

Vessels have begun to be diverted to other ports. Many people (truckers, warehouse workers, etc.) are not working due to the strike. This is at risk of putting a big strain on the economy if it continues. There was a 10 day ILWU strike against all the US west coast ports in 2002 that cost the economy $1 billion a day.

I've got one customer with seasonal, just in time goods, that is going to be hurt bad if this continues. They have multiple containers sitting on ships anchored off Long Beach. Others are in the same boat (pun intended). Another customer of mine, whose busy season is in the later winter/early spring, mindful of the possible longshoremen's strike on the east coat in September (which would push cargo to the west coast), is taking everything over Canadian ports, which is then railed into the US. Their decision to keep moving everything over Prince Rupert, BC, was a very good move.

I come from a blue collar, working class, union background, but just like the UAW, I think the OCU and the ILWU might be getting a bit big for their britches. IMO, it's gone beyond securing fair wages and better working conditions to being, simply put, greedy.

[bae]

Should the government step in and force these people to return to their jobs at gunpoint?

I think not.

Folks are not *required* to work at any particular job to prevent "a big strain on the economy". Their time is their own, they are free to ask what compensation they wish for their efforts. Just as management is free to tell them to go take a hike. If one side gets too ambitious at wanting chunks of the pie, well, things get messy for a while. That's life.

[ApatheticNoMore]

It's hard to imagine it putting a bigger strain on the economy than the politicians games like the fiscal cliff, but if it does, I fully support that.

[freein05]

Should the government step in and force these people to return to their jobs at gunpoint?

I think not.

Folks are not *required* to work at any particular job to prevent "a big strain on the economy". Their time is their own, they are free to ask what compensation they wish for their efforts. Just as management is free to tell them to go take a hike. If one side gets too ambitious at wanting chunks of the pie, well, things get messy for a while. That's life.

This progressive likes the way you phrased your answer. Libertarians and progressives have a lot in common.

[peggy]

This is true.

[jp1]

Didn't look at the Port of LA, but looking at the most recent financials of the Port of Long Beach it appears that they're insanely profitable. Didn't dig too deeply but they have a profit margin of over 50%, a solid quick ratio and very positive cash flow. Unless there's some one-time outlier causing that I don't blame the union. After all it's the hard work of the regular employees that has made this kind of profit possible. The surprising thing is that the port's customers aren't demanding to renegotiate their contracts, since it looks like they're getting overcharged.

[Gregg]

Libertarians and progressives have a lot in common.

Yes, we do.

[Gregg]

The surprising thing is that the port's customers aren't demanding to renegotiate their contracts, since it looks like they're getting overcharged.

If that starts happening on any kind of meaningful level it may bring a very quick end to the strike.

[Spartana]

Ex-hubby is in charge of all commercial vessel inspections in the ports of LA/LB (which is really all one big port) and they have a huge amount big freighters and cargo ships backed up (on anchor) for days now because of the strike - and the Longshoremans union and other unions will not cross any picket lines. He says they are now diverting the vessels to other west coast ports (including a fancy new one up in Vancouver) and that the ships owners are now considering abandoning LA/LB port for other west coast ports permanently. That will cost Calif something like one billion dollars a day (A DAY) in revenue, not to mention all the jobs (something like 800,000 related jobs). So basicly a relatively small amount of clerical workers who make approx. $41/hour, who are picketing to save their now-outdated jobs (most stuff done via computer and much less paper-work needed so less clerical workers needed - or jobs which they want to be shipped overseas to be done at much lower cost - the reason they are picketing in the first place), could in effect topple the busiest port in the world causing a hugh loss in revenue and jobs.

[Spartana]

Well the strike is over so the world as we know it will not end. Your Furbies, Transformers, and Baby-Poops-Alot Dolls from China will make it on time for Christmas and all will be well, all will be well :-)!

[jp1]

Ex-hubby is in charge of all commercial vessel inspections in the ports of LA/LB (which is really all one big port) and they have a huge amount big freighters and cargo ships backed up (on anchor) for days now because of the strike - and the Longshoremans union and other unions will not cross any picket lines. He says they are now diverting the vessels to other west coast ports (including a fancy new one up in Vancouver) and that the ships owners are now considering abandoning LA/LB port for other west coast ports permanently. That will cost Calif something like one billion dollars a day (A DAY) in revenue, not to mention all the jobs (something like 800,000 related jobs). So basicly a relatively small amount of clerical workers who make approx. $41/hour, who are picketing to save their now-outdated jobs (most stuff done via computer and much less paper-work needed so less clerical workers needed - or jobs which they want to be shipped overseas to be done at much lower cost - the reason they are picketing in the first place), could in effect topple the busiest port in the world causing a hugh loss in revenue and jobs.

Of course lost jobs at one port means new jobs in another port. The goods still have to come ashore somewhere.

I'm surprised the port doesn't have it in their union agreements that union jobs can be replaced by technology. SO is an HR Director for a large hotel and that's one of the things they have in all their union contracts. Initially it was the obvious positions like clerical jobs and other not so obvious jobs like locksmith that got reduced in this manner. In recent years management has taken it a step further and looked at things like industrial model roombas to replace the porters who currently vacuum banquet rooms.

[Spartana]

Of course lost jobs at one port means new jobs in another port. The goods still have to come ashore somewhere.

.


True. But I think the issue, for the U.S.A. at least, was that many of those ships would be sent to Canada - especially a new port facility they have in Vancover - thus taking the jobs and revenue up there instead. Of course that would mean more truck and rail traffic (and jobs) to transport goods from Canada to the various states, but those could just as well benn filled by Canadians don't cha know - Ah? :-)!

I do wonder what the effect would have been if shipping to north america had been halted (not that THAT would ever happen) and countries like China sent their goods to other nations instead. On the good side we'd probably be more inclined to manufacture our own goods - thus creating many, many more jobs. Other the down side I can see a huge collapse of the economy in a short period of time and such lack of needed goods to make everything run that we just couldn't function except as a Third World nation - if that. We have become as much dependant of foreign imports as we have on foreign oil to keep the us functioning.