ILWU workers in 2014 got largest pay hike in decade, PMA says

The past year was not good for importers and exporters that ship through the U.S. West Coast as they endured horrendous port congestion due to labor slowdowns and employer retaliation. But it was a great year for registered members of the International Longshore and Warehouse Union who enjoyed their largest increase in average annual earnings in a decade.

The ILWU contends the data published by the Pacific Maritime Association, which represents employers, in its annual report is misleading because it only takes into account the highest paid and most-skilled union workers. Whatever the case, the report stating the average annual earnings for Class “A” general longshoremen who worked a normal 40-hour workweek rose 7 percent to $146,517 is sure to reignite debates over ILWU pay.

Importers and exporters, of course, are angry at both the ILWU and the employers for letting conditions at West Coast ports deteriorate over the past year. The ILWU in early November began a series of orchestrated work slowdownsduring their year-long contract negotiations with the PMA. Employers retaliated by slashing night and weekend work opportunities, which compounded the congestion at West Coast ports.

Class “A” marine clerks who worked at least 2,000 hours earned on average $165,202, also 7 percent more than in 2013. That was also the highest jump in earnings over the past decade. Walking bosses, or foremen, earned an average of $230,003 for 2,000 or more hours of work. That was an increase of 8 percent over 2013 and their second highest increase of the past decade after their 12 percent increase in 2010.

Longshoremen in 2014 racked up 12 percent more man-hours than they did in 2013, even though the total container volume they handled increased only 1 percent over 2013. Terminal operators say that when their facilities are congested, it takes much more manpower to deliver containers than under normal conditions.

Individually, some dockworkers say via social media or at public forums they do not know where the PMA comes up with its lofty figures because their paychecks don’t add up to six-figures per year. They cite the base wage of $36.68 an hour, which for 2,000 hours of work a year translates to about $73,000 in annual earnings.

ILWU spokesman Craig Merrilees said Tuesday that employers who earn “a million dollars a year and generous benefits are hardly in a position to lecture dockworkers about good-paying jobs.”

Merrilees said the data in the PMA annual report is misleading and selective because it includes only Class “A” longshoremen and clerks who have the highest level of skills and seniority. The typical longshoreman earns about $80,000 a year, he said. Furthermore, part-time workers, known as casuals, represent one of every six workers on the waterfront, but they are excluded from the PMA numbers. Casuals generally earn much less than registered dockworkers and they do not have benefits.

The PMA recognized that the straight wage issue involving the typical Class “A” longshoreman is confusing and, on its own, does not explain the gross annual earnings listed in the annual report. PMA addressed that issue by answering the question, “How does $36.68 an hour add up to nearly $156,000 a year?” The report stated that the hourly wages of many longshoremen include the base wage, plus “multipliers” such as skill bonuses, overtime and weekend work.

“In fact, 90 percent of all hours paid to registered workers in 2014 were subject to multipliers that enhance earnings significantly,” PMA stated.

For example, 80 percent of all work includes skill bonuses ranging from $2.40 to $5.80 an hour. Evening and night work, which accounts for 39 percent of all hours paid, commands a rate of $49 to $68 an hour. Overtime work, including weekends and holidays, pays $55 to $77 an hour and accounts for 34 percent of all hours paid. In short, “the effective average rate for all hours paid is more than $50 an hour,” the PMA annual report stated.

Furthermore, some job classifications guarantee 50 hours of pay each week for 40 hours of work. Marine clerks, steady foremen and steady crane drivers are guaranteed 50 hours of pay when they work 40 hours in a week, the report stated. About 30 percent of the ILWU work force was paid 2,600 or more hours in 2014, according to the PMA.

PMA also noted that registered longshoremen are also paid an average of $6,000 a year in vacation time and have 13 paid holidays.

Employers said during the lengthy and contentious negotiations of the past year that the ILWU contract negotiations, which began on May 12, 2014, should have been concluded by Labor Day last year because none of the benefits registered dockworkers have enjoyed over the years were threatened by employers, and the PMA was prepared early on in the negotiations to offer the ILWU generous wage increases for the five-year life of the new contract. The talks were held up by issues outside of wages and benefits, such as demands to fire certain arbitrators, chassis jurisdiction and demands to grant mechanics a guarantee of more than 40 hours pay each week, employers said.

Source:Journal of Commerce