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»Issue 7, Volume 07 www.scarbrough-intl.com » July 2007 |
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COVER STORY Long Beach/Los Angeles Port Strikes The Long Beach and Los Angeles ports have been threatened with strike action by 750 clerks who want more pay and benefits. The strike will set off a string of events that will put a dent in the flow of global transportation and significantly impact the United States economy. If an agreement is not reached the consequential chain of events could have monetary impact in the billions of dollars. The 2002 port strikes caused estimated losses of nearly one billion dollars per day. The clerical workers will likely receive support from the longshoremen who will honor the picket lines if an agreement is not reached, shutting down operations at the largest ports in the United States. These ports account for 40% of freight that moves into the United States. Freight coming from Asia will feel the greatest impact. Importers should anticipate transit delays if the clerks and longshoremen strike. Deadlines for agreement were set for 12:01am on Monday, July 16th. The union has since agreed to continue negotiations past the previously set deadline. "We anticipate an agreement," said John Fageaux Jr., president of the office clerical unit of Local 63, a division of the International Longshore and Warehouse Union. "We've done just about all we can do to get an agreement reached." Fageaux submitted a revised contract to employers that one labor official hoped would avert a possible shutdown of the docks. Fageaux said that wages were not a key issue. Instead, the main sticking points have been job security and a package proposed by employers that would limit health plan choices for new hires and temporary employees. "These are the highest-paid office clerical workers in America, they don't pay anything for health insurance, they have the best insurance plan in America, and we need some of our needs back as well," said Stephen Berry, shipping line negotiator. Berry said the employers’ latest offer included raises that over the life of a three-year contract would bump the employees’ hourly pay to $39.50 ($82,160 per year, based on 40 hour week); the union is seeking increases that would equal $53 per hour ($110,240 per year, based on 40 hour week) by the last year of the contract. [Attorneys in Los Angeles and Long Beach make an average of $79,000 while Executive Assistants and Graphics Designers make $45,000 (www.payscale.com).A selection of online Salary Calculators have estimated that $82,160 in the Long Beach and Los Angeles area is the equivalent to $48,000 (avg) in Kansas City, Missouri. As the three year contract offer proposes, the clerks will be earning a Kansas City equivalent of $65,000 (avg).] Debate as you may on this issue. If the clerks and longshore workers strike the impact will be felt country wide and will put a dent in the United States economy. The hope is that the parties involved can settle the issue quickly so as to avoid any supply chain disruptions. Importers, large and small, have obligations and commitments to customer who in turn have obligations and commitments. The ripple effective could slow freight movement for several months. Scarbrough International will try to keep you informed as events transpire. If you have any questions or concerns please contact your customer service representative or e-mail us at info@scarbrough-intl.com. -- Scott Woods, Marketing |
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