Maritime unions have a long history of lobbying for rules and regulations, stifling innovation, and sabotaging operations, all in the name of benefiting their members. The most recent example of this is the tension between employers and the International Longshore and Warehouse Union (ILWU) at the West Coast ports of Los Angeles and Long Beach, which serve as the busiest gateways for imported consumer goods in the United States. The ILWU’s impact is particularly strong because it controls virtually all longshore labor for all West Coast ports. Maritime unions are the reason why, despite being the number one global superpower, America consistently ranks like third world countries, behind Asian nations and other Western countries in terms of shipping efficiency on a global scale.
Maritime unions have a unique history that continues to contribute to their strength today. In the past, life on a ship was unlike any other form of private employment. Captains held significant power, acting as legal judges, juries, and executioners while at sea. They had the authority to administer corporal punishment until the 1890s. However, as the old adage goes, power corrupts, and absolute power corrupts absolutely. Now, maritime unions have the nation’s economy in a devastating stranglehold.
Unionized dockworkers in U.S. ports are open for fewer hours per week than virtually every other port around the world, due to labor contracts. Secondly, the cost is significantly prohibitive, a west coast union dock worker makes an average $171,000/year plus free healthcare. Lastly, and arguably the most damning is unions have fought for decades to stop automation and modernization. They’re also fighting automation on ships too, refusing to service vessels that reduce crew size and increase efficiency via automation.
Maritime unions’ have killed the shipping industry. The 2020 World Bank/IHS Markit “Container Port Performance Index” revealed that none of the U.S. ports made it into the top 50 global ports for efficient ship handling. Among U.S. ports, Philadelphia ranked the highest statistically at 83, followed by Virginia at 85 and NY/NJ at 89. Oakland secured the 332nd position, while LA/LB disappointingly ranked at 328 and 333, respectively.
These negotiation issues are further exacerbated by the current Biden administration’s refusal to acknowledge the crippling monopoly power granted to maritime unions. Allowing maritime unions to continue holding America’s shipping industry hostage will only widen the growing gap between us and the rest of the world.