Category Archives: Labor Economics

West Coast container ports hit by labor actions

Apparently the negotiations between the Pacific Maritime Association (PMA) and the International Longshore Workers Union (ILWU) are not going well over wages.

Some peripheral issues have been settled, but union workers want a share of the massive profits generated by the container carriers during the COVID time. PMA represents ocean carriers and terminal operators in the negotiations, and some terminals are controlled or dominated by a carrier or a group of them.

I think that is appropriate. Anyone’s analysis of the labor economics of unions will indicate that unions only have occasional times when they have any leverage over their terms of employment. This is one of them.

They should be expected to bargain hard for wage increases because they have not had a new contract since 2015. A lot of water has gone under the bridge, including massive profits for ocean liner firms. Longshoremen played a large part in the successful import and export of all those containers.

The PMA has not had a good record of conducting these negotiations, sometimes playing hardball when their sponsors would have liked a little softer approach. It’s true that the ILWU is known for its intransigence also.

But now the PMA should make a realistic offer. Inflation is high, there’s no prospect of it moderating very much very soon, and there are all those past years to make up for. Longshoremen deserve to be paid fairly for their work in the light of present, and possibly future, economic conditions.

These incidental stoppages for short times are just warnings. Neither side should want a general strike, because the new increases in West Coast shipping, after a long decline, are just emerging. It’s true some traffic has left for the East Coast, but the facts are that West Coast ports that operate well are still the fastest and most reliable way to ship to America from the Far East. If they are seen as reliable, traffic will return.

Time to step up and make an offer longshoremen are likely to accept.

Greg Miller Sunday, June 04, 2023

West Coast container ports hit as labor talks take ominous turn

Gard emphasizes the S in ESG

ESG is an emerging concern for the maritime industry. And often the focus is on the E for environment. But the S for social good is equally important, and demands more attention. For the maritime industry, the S is many times seafarers and their well-being.

Gard is one of the premier P&I clubs offering marine insurance. It’s based in Arendal, a small Norwegian port city. Gard provides a mutual insurance service covering a wide range of liabilities that may arise from the operation of a vessel, such as pollution, cargo damage, collision, other third-party claims, and of course crew-related matters. 

Gard claims to insure about one-fifth of the world’s seafarers. The top cause for marine casualties and accidents is human error and so it makes a lot of sense for Gard to focus on improving the working environment for seafarers, as better conditions, security and support can reduce distractions and lead to safer ship operations. Gard takes its role as a leader in the P&I marine insurance industry very seriously and is especially proactive in ESG practices.

‘We started a process in 2017 to look at ESG and sustainability more systematically, and how we as a company could make a positive contribution,’ says Rolf Thore Roppestad, Chief Executive of Gard. ‘At the end of the day, we insure people, the environment and property, so our business is all about ESG….We work to make sure they get medical treatment when needed, that they have fair and clear working contracts and that they are compensated if something happens. This is the ‘S’ in ESG.’

An example of Gard’s forward looking approach is their new digital app, the International Mariners Medico Guide, launched in December 2022. It’s free to download, and gives seafarers immediate help and support, even without wifi access. Anyone can download the app, but you must log in with your call sign or IMO number to use it.

The app can be used right at the spot of an illness or accident. That’s of great value. It also can be updated continuously with the latest information for proper care. For instance, emergence of a new virus can be covered as soon as the care information becomes available onshore. ‘For us at Gard, it’s all about being able to help,’ says Lene-Camilla Nordlie, Vice President and Head of People Claims at Gard. ‘Taking care of people is the most important thing that we can do together with the ship owners and the employer. Covid triggered much-needed attention to the challenges of crew on board, and especially that more needs to be done to support mental health,’ she adds.

It is good to see that important firms are taking an interest in seafarers, and working to help them maintain their health and safety.

Vice President, Head of People Claims, Lene-Camilla Nordlie and Chief Executive Rolf Thore Roppestad

(Photo credit Mona Hauglid)

Illinois trucking company’s sudden shutdown leaves team drivers stranded, unpaid

The story documented here is unfortunately all too common today. Truckers are routinely mistreated by trucking firms like this one in the story. And they keep going out of business then reopening and doing the same thing.

Regulators should have the power to put teeth in penalties for this kind of bad behavior, and should without question block future registration when firms close down like this. The article indicates that the wife of the owner of the firm has opened another small trucking firm, which will probably do the same thing to new marks.

I’m tired of writing about mistreatment of truckers. I have great respect for legitimate firms that take care of their drivers. The US should not let bad actors destroy drivers’ lives this way. It’s going to be very difficult to attract new drivers when it’s so easy to be scammed.

Perhaps the Department of Transportation could take a stab at fixing this issue by denying registrations after a background check.

Mayor Pete, it’s up to you!

Clarissa Hawes·Tuesday, April 11, 2023

Illinois trucking company’s sudden shutdown leaves team drivers stranded, unpaid – FreightWaves