Research

AR 04-02

Labor at the Ports: A Comparison of the ILA and ILWU

Kristen Monaco
California State University, Long Beach
Department of Economics
1250 Bellflower Boulevard
Long Beach, CA  90840
Tel:  (562) 985-5076
Fax:  (562) 985-5804
Email:  kmonaco@csulb.edu

Project Objective:
Labor issues play a major role in efficient goods movement for ports.  Longshoremen are organized by one of two primary unions: the International Longshoremen’s Association (ILA), largely in operation on the east coast, and the International Longshore and Warehouse Union (ILWU) on the west coast.  Ports have coordination problems due to holdup points created by these unions.  The purpose of this study is to examine the role of unions in promoting or hindering efficient use of labor at the ports. 

The research focuses on comparing current and historical work rules of both the ILA and ILWU to examine potential gains from better implementation of existing work rules and to identify sources of inefficiency stemming from the same. The findings point to several factors which drive the difference in pay and work rules of longshoremen on the East and West Coasts. 

The unions, for example, have employed different strategies in collective bargaining.  The ILWU strove to keep wages high by reducing labor supply.  The ILA, however, had agreements with employers to keep a surplus of labor.  The two unions also had different approaches to the adoption of technology. Given the inevitable decrease in labor demand due to modernization, the ILWU pursued the successful strategy of decreasing labor supply to keep wages high.  In contrast, the ILA historically maintained a surplus of labor.

The ILWU has also been able to protect its workers through a master agreement with management that covers most aspects of wages and work rules.  The master contract for ILA covers wages, hours, and benefits, while work rules are decided on a local level. 

The ILA has been weakened due to trade balances and the type of freight handled, particularly at Gulf ports.  The shift of trade to West Coast ports left East Coast ports with excess capacity.  In addition, the break bulk segment of the market, largely served by Gulf ports, became more competitive with firms seeking to lower costs.  This led to the entry of non-ILA stevedoring to Gulf ports, in turn leading to wage concessions by ILA workers in break bulk and the emergence of “ILA lite” operations.

The excess capacity on the East Coast and the ability of employers to pit labor at different ports against each other led to a bifurcation of the ILA wages and further segmentation of this labor market at a time when the ILWU was working to eliminate segmentation in their labor market.  

Tasks:
A. History and Survey of Work Rules: ILA
B. History and Survey of Work Rules: ILWU

Milestones/Dates:
January 1, 2004-December 15, 2004

Total Budget:
$34,660

Student Involvement:
1 graduate student