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"Catastrophic Shutdown Of America's Supply Chain Looms" As West Coast Port Worker Talks Break Down

Tyler Durden's picture




 

For those who have been following the recent ISM reports, one of the recurring concerns of respondents in both the manufacturing and service sector has been the congestion at West Coast Ports - which handled 43.5% of containerized cargo in the U.S and where transiting cargo accounted for 12.5% of US GDP - as a result of reduced work output by the local unions who have been more focused in recent weeks on ongoing wage hike negotiations.

And according to the latest update from the 29 west coast ports that serve as the entry point of the bulk of Asia/Pac trade into and out of the US, things are about to get far worse for America's manufacturing base, because as RILA reported earlier, talks between the Pacific Maritime Association (PMA) representing port management, and the International Longshore and Warehouse Union (ILWU) officially broke down on Wednesday, and without an agreement, experts have suggested that nearly 30 west coast ports could be shut down within a week.

As RILA reports, "a work slowdown during contract negotiations over the past seven months has already created logistic nightmares for American exporters, manufacturers and retailers dependent on an efficient supply chain. A complete shutdown would be catastrophic, with hundreds of thousands of jobs at risk if America’s supply chain grinds to a halt."

More:

"A west coast port shutdown would be an economic disaster," said Kelly Kolb, vice president of government affairs for the Retail Industry Leaders Association. “A shutdown would not only impact the hundreds of thousands of jobs working directly in America’s transportation supply chain, but the reality is the entire economy would be impacted as exports sit on docks and imports sit in the harbor waiting for manufacturers to build products and retailers to stock shelves. 

 

“The slowdown is already making life difficult, but a shutdown could derail the economy completely,” said Kolb. “For retailers specifically, a shutdown will have dire consequences for those dependent on spring inventory demand.”

 

The last prolonged port shutdown of the West Coast ports was the 10-day lockout in 2002 which was estimated to cost the U.S. economy close to $1 billion a day.

 

“A port shutdown of even a short duration could derail economic growth and cause long-lasting damage and job losses across the country,” said Kolb. “There needs to be a greater sense of urgency at the White House, before it’s too late.”

One can see why the US retail association is concerned. So will there be a strike? Here is Bloomberg's take:

Union-led work slowdowns could halt the 29 U.S. West Coast ports in five to 10 days, the head of the shippers’ association said, urging the union to accept a new offer that includes 3 percent raises. James McKenna, the president of the Pacific Maritime Association, said backups and delays at many of the ports are harming farmers, manufacturers and consumers as the flow of goods approaches a “coast-wide meltdown.” He called on the International Longshore and Warehouse Union to accept management’s second formal contract proposal since negotiations began last May.

 

“We’re not considering a lockout,” McKenna said on a conference call with reporters, his first public comments since the talks began. “What I’m really saying is that this system will bring it to a stop. Once that happens, we really don’t have a choice.”

Which is like the ECB saying "we don't really want Greece out, but we will halt their liquidity. Once that happens, Greece doesn't really have a choice."

Here are the port workers' demands:

The association of shipping lines, terminal operators and stevedores made public details of its contract offer, including 3 percent annual raises over five years, retaining employer-paid health care, and raising pensions by 11 percent. The average dockworker now makes $147,000 a year in salary, plus $35,000 a year in employer-paid health care and an annual pension of $80,000, according to an association press release.

And while there hasn't been a formal lock out yet, the reality is that the workers have made their displeasure felt loud and clear:

McKenna blamed the union for work slowdowns that have contributed to congestion at the largest West Coast ports, including Los Angeles, Long Beach, Oakland, Seattle and Tacoma. Twenty-two ships were queued up Wednesday at the harbor shared by the Los Angeles and Long Beach ports, up from as few as four in mid-December, according to the Marine Exchange of Southern California, in one measure of the backups confronting shippers.

 

Since early November, the longshore union has been dispatching fewer crane operators in Los Angeles and Long Beach and slowing cargo movement in Oakland, Seattle and Tacoma, according to a Feb. 3 maritime association presentation. McKenna said productivity at many ports is down by as much as half, suggesting that cargo movement “will collapse under its own weight.”

Some of the impacts of the already experienced slowdown has included keeping U.S.-raised Christmas trees from reaching consumers in Asia, depriving McDonald’s customers in Japan of french fries, and stranded shipments of Mardi Gras beads bound for New Orleans.

Should talks fall apart, it probably will not be the end of the world: a nearly identical situation developed one decade ago leading to a 10 day lock down and which ended up costing the US economy $10 billion per day:

In the conference call, McKenna said the two sides remain at odds over wages, pensions, the duration of the contract and arbitration for workplace disputes. He said the sides are “far apart” on some issues and nearing agreement on others.

 

The parties negotiated many of the same issues in 2002 before the maritime association locked out workers for 10 days amid slowdowns. That stoppage, which ended when then-President George W. Bush invoked the Taft-Hartley Act, cost the U.S. economy $1 billion a day, the maritime association said.

 

A 20-day lockout now would cost more than $2 billion a day, the association said in a report last year, including losses to railroads, ocean carriers and the broader economy.

Which incidentally, in an economy that is desperate for any "one-time, non-recurring" item to explain what is now global secular stagnation and economic slowdown, an excuse such as a port strike, or a harsh winter, or a strong dollar, or plunging crude, may be precisely the scapegoat that the central-planning doctor ordered.

 

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Thu, 02/05/2015 - 16:03 | 5748736 El Vaquero
El Vaquero's picture

Only in states that don't let people carry guns around.  There is a reason that the unions haven't moved into my state like they have in places like Chicago.  They tried the intimidation shit back in the '50s on my grandfather when he was the foreman on a road construction crew.  That union rep wound up with my grandfather telling him in no uncertain terms that he would be dead if he was seen around the camp again, the dog getting sicced on him and a court injunction against the union.  I guess the guy shouldn't have threatened to burn the camp down.  There are quite a few instances of shit like that happening here.

Thu, 02/05/2015 - 16:15 | 5748802 serotonindumptruck
serotonindumptruck's picture

Especially in a place like Kalifornia where you can't even legally arm yourself. Any scabs who want to step up had better make agreements to watch out for other scabs. Those union pricks definitely stick together and will fuck your ass up.

Thu, 02/05/2015 - 20:32 | 5749905 mattfriend88
mattfriend88's picture

I understand that after 9/11, the union could not take guys with a criminal record; but, existing guys could stay.  I suppose that we will see if the ILWU has the muscle that they used to have? 

 

Thu, 02/05/2015 - 15:45 | 5748641 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Exactly. You get it czarangelus.  Unions = capitalism.  Even if the company / government can't afford it the people deserve fair wages. They can raise prices or taxes to cover it.  and fuck scott walker too, that nazi hates capitalism. You tell em czarangelus!

Thu, 02/05/2015 - 17:25 | 5749188 TheReplacement
TheReplacement's picture

Ah, making shit up again.  Some things never change.

How's the shill pay?

Thu, 02/05/2015 - 20:43 | 5749940 Pareto
Pareto's picture

Unions = capitalism.  is for sure - bar none - the dimbest thing I have read on this site EVER - and i've read some pretty dumb shit - but fuck - this one tops them all.  how do you argue stupid?  well, it turns out that you can't - and that assertion most efficiently qualifies as one of those "stupids".

Thu, 02/05/2015 - 21:08 | 5750019 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

LOL. I was jsut fucking making a mockary of that retard who said it was. I was amazed myself. 

Fri, 02/06/2015 - 07:31 | 5751052 Benjamin123
Benjamin123's picture

Define unions and capitalism before settling if unions=capitalism.

BTW, nothing in this world "is". The concept of "being" and the verb "to be" do not have proper definitions. We perceive some properties of things, but thats not the same as anything "being" anything.

Bill Clinton was right.

Thu, 02/05/2015 - 16:36 | 5748936 juggalo1
juggalo1's picture

One problem with this theory is that the longshore unions have a stranglehold on the global shipping community.  There are only a limited number of ports, and if a ship has been handled by non-union work no union workers here or abroad will touch it.  It really is an all or nothing arrangement given the huge amount of capital required for handling this cargo.

Thu, 02/05/2015 - 16:48 | 5749009 Benjamin123
Benjamin123's picture

Guess what, it does not change the argument. Go open a new port yourself and take advantage of this opportunity. What kind of argument is that anyway, there are not lots of ports so "we" need to fuck workers?

Zerohedger rants against the 1% are absolutely inconsistent. As long as a Zerohedger sees an opportunity to IDENTIFY with the 1%, they jump at it.

Thu, 02/05/2015 - 19:19 | 5749676 NidStyles
NidStyles's picture

naw, we just don't see the world as black and white and bi-polar as you. Someday you might understand why, but you'd have to overcome your irrational premises first.

Thu, 02/05/2015 - 15:39 | 5748604 Oldwood
Oldwood's picture

Simply coincident that BDI is at record lows? How about refineries on strick when oil is massively down? 

Coincidences everywhere.

Thu, 02/05/2015 - 15:44 | 5748637 Philo Beddoe
Philo Beddoe's picture

Your crtical thinking skills are not welcome around these parts.  May I suggest some common core education and a slap to the side of the head with a baseball bat. 

Thu, 02/05/2015 - 16:06 | 5748748 Oldwood
Oldwood's picture

The path to power through the incentivization of self destructive behaviors.

 

Stop, or I'll shoot myself!

That will show them who's boss!

Thu, 02/05/2015 - 15:31 | 5748560 City_Of_Champyinz
City_Of_Champyinz's picture

$147,000 per year to be a F-ing dockworker??  Why the F did I bother going to college??

Thu, 02/05/2015 - 15:34 | 5748575 MonkeyKnutz
MonkeyKnutz's picture

Ho Lee Fuk! That shit can't be right! <--And begging for moar? WTF? Wrong career choice made here!

Thu, 02/05/2015 - 15:34 | 5748577 rejected
rejected's picture

Because you wanted to be smart?

Thu, 02/05/2015 - 15:36 | 5748585 City_Of_Champyinz
City_Of_Champyinz's picture

College did not bless me with a high IQ.....  ;)

 

Thu, 02/05/2015 - 15:43 | 5748629 Sudden Debt
Sudden Debt's picture

It was just cheaper to go to college than go to the hookers every day!

Thu, 02/05/2015 - 16:26 | 5748868 saints51
saints51's picture

Better do the math again. Hookers are a lot cheaper. When you pay a hooker, you are paying her to leave not fuck.

Thu, 02/05/2015 - 17:34 | 5749218 A Nanny Moose
A Nanny Moose's picture

Cheaper indeed...in money saved on wedding expenses alone...including the over priced glass for her ring finger.

If you want to get laid, go to college. If you want an education, go to the library. - F. Zappa

Thu, 02/05/2015 - 19:02 | 5749613 saints51
saints51's picture

I like your thought process Nanny. We can talk anytime. I told a guy trying to sell an oil well to me today over the phone, I hire college kids to count my money. I use my non college ass with street smarts to get paid.

 

  • I have never let my schooling interfere with my education.

Mark Twain

Thu, 02/05/2015 - 15:46 | 5748635 SheepDog-One
SheepDog-One's picture

Hey I know plenty of college 'tards out there leading totaly kickass lives!

Thu, 02/05/2015 - 15:35 | 5748584 SethDealer
SethDealer's picture

yeah they are draining the system. time to just fire'em all

Thu, 02/05/2015 - 15:43 | 5748632 thatthingcanfly
thatthingcanfly's picture

That would be my motion. Fire them all, declare the facilities non-union, then open up their jobs to anyone interested. Only hire back the former employees who were actually productive. Fill the others' positions with new hires. Not like we're short of unemployed people in this country.

Thu, 02/05/2015 - 15:54 | 5748685 JailBank
JailBank's picture

That is to easy. You know how many kickbacks and bribes you are leaving off this plan?

 

They would burn that dock down before they let it go non union.

Thu, 02/05/2015 - 15:54 | 5748687 JailBank
JailBank's picture

That is to easy. You know how many kickbacks and bribes you are leaving off this plan?

 

They would burn that dock down before they let it go non union.

Thu, 02/05/2015 - 16:08 | 5748760 dexter_morgan
dexter_morgan's picture

like I said in another comment - being a scab can be unhealthy for a person depending on the union. The term 'union thug' didn't just appear for no reason.

Thu, 02/05/2015 - 16:45 | 5748987 Uncle Remus
Uncle Remus's picture

Samson gets around.

Thu, 02/05/2015 - 16:39 | 5748953 Benjamin123
Benjamin123's picture

What system? Would you stop talking in metaphors?

Thu, 02/05/2015 - 15:36 | 5748590 praps
praps's picture

That's the average.  The CEO gets $20 million and the workers get $30k.  Just guessing.

Thu, 02/05/2015 - 16:12 | 5748786 LetsGetPhysical
LetsGetPhysical's picture

Bullshit. They easily make 100k in the Bay Area. A fucking janitor for BART makes over 100k. Then of course there's the "work rules", benefits, vacation pay, sick pay, personal time.... How much a year do you think the union rep gets? Or the president of the local? 

Thu, 02/05/2015 - 15:37 | 5748595 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Think about how cultured you are. Those poor doc workers are making ok money, but they don't understand teh plight of the gays or migrant workers....you got a much better deal, trust me

Thu, 02/05/2015 - 15:42 | 5748625 Rockatanski
Rockatanski's picture

you can just fuck off now. i've seen enough of your dribble....its like diarrhea of the mouth and constipation of the brain.

Thu, 02/05/2015 - 15:53 | 5748660 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

The truth hurts.....gays have it hard, but it's changing fast and lsoers like you will not stop this amazing movement of civil rights

 

Edit: sorry I didn't mean hard like that but you get the point, ah, there I go again. Um, gay rights deserve to come to the for front. eh, never mind

Thu, 02/05/2015 - 16:05 | 5748745 NoVa
NoVa's picture

+1 for Ungood political speak.

 

Long ago I had a boss that would always correct anyone who gave driving directions using the word "Straight"  I would say go straight through the light, then turn right...

He would yell back - " it is FORWARD - go forward, not straight.  never tell me to go straight"

 

NoVa

Thu, 02/05/2015 - 16:09 | 5748770 Oldwood
Oldwood's picture

You just ain't funny. I don't mean funny in that way...you know just hah hah not funny. You may be damned funny in other ways...just sayin...damned funny.

Thu, 02/05/2015 - 15:38 | 5748599 Philo Beddoe
Philo Beddoe's picture

Micahel Moore is laying down somewhere eating doughtnuts and writing the script for his next documentary. 

Thu, 02/05/2015 - 20:28 | 5749894 Pareto
Pareto's picture

+1 that there's some pretty funny shit philo.....tell me, is he on his side, or his back?  no fucking way he could be laying on his gut.

Thu, 02/05/2015 - 15:44 | 5748638 Bagbalm
Bagbalm's picture

Because it's easier to get in Harvard than get a dock job?

Thu, 02/05/2015 - 16:17 | 5748818 Uncle Remus
Uncle Remus's picture

Dangerously close to some truth there ese.

Thu, 02/05/2015 - 17:13 | 5749131 shovelhead
shovelhead's picture

Not if your Uncle Vinnie "The Thumb" Giombatta tells you to show up at the docks tomorrow.

"Go see the Union Rep Fat Paulie. He'll set you up."

If your Uncle has some real juice, that will be the last time you'll ever have to visit the dock, except on payday.

Thu, 02/05/2015 - 17:16 | 5749146 Uncle Remus
Uncle Remus's picture

I'll ring Uncle Paddy and query him on this.

Thu, 02/05/2015 - 15:31 | 5748561 SheepDog-One
SheepDog-One's picture

Fuck I don't know what we're going to do if WalMart shelves aren't stocked with plenty of Cheezy Poofs 5 gallon buckets! Perhaps mayhem!

Thu, 02/05/2015 - 15:31 | 5748563 brooklynlou
brooklynlou's picture

No more iPhones and iPads?
No more shake weights?
No more big screen TV's?

The end of the world is f'ing nigh ...

Thu, 02/05/2015 - 15:40 | 5748613 Rockatanski
Rockatanski's picture

naw, iphones get flown in by fedex. so we are safe  (sarc)

Thu, 02/05/2015 - 15:32 | 5748566 juggalo1
juggalo1's picture

I don't understand why we haven't heard from more politicians about this looming threat.  As a worker directly affected by any strike (or threat of strike) I am amazed that the politicians who are supposed to be working for the public good haven't been publicly pushing for a solution.

Thu, 02/05/2015 - 19:42 | 5748586 kchrisc
kchrisc's picture

"I don't understand why we haven't heard from more politicians about this looming threat."

Made up "crises" are more fun, and fruitful for those running them.

Measles at Disneyland?! LOL

The banksters need to repay us.

 

"Can't we just drone them like we do school children, and wedding parties, overseas?"

Thu, 02/05/2015 - 17:46 | 5749274 Benjamin123
Benjamin123's picture

"Public good"=Your ass.

Thu, 02/05/2015 - 15:32 | 5748567 kchrisc
kchrisc's picture

After the toilet paper dollar goes poof, I wonder what the dockworkers' future masters, the Chinese, will be willing to pay them?!

"Work, or lime lined trench?"

The banksters need to repay us.

Thu, 02/05/2015 - 15:33 | 5748568 rejected
rejected's picture

OMG!! No more Chinese shit? How are we gonna survive?

Thu, 02/05/2015 - 15:34 | 5748570 Son of Loki
Son of Loki's picture

Jose, Pedro, and Felipe are in line waiting for those jobs. The open border policy, began by Clinton's globalization and augmented by Bush and Barry has far-reaching effects.

What's interesting is these unions voted for the Democrats, Barry, Pelosi, Reed, Shoe-mer, and Clinton and so on, who might wind up being the cause of replacing them with very cheap and very very abundant labor.

A kind of Blowback.

Thu, 02/05/2015 - 16:34 | 5748917 serotonindumptruck
serotonindumptruck's picture

I've never met a Mexican who didn't carry a knife, and they have always seemed more that ready to cut some poor gringo for offending them.

Those Mexicans also stick together, so maybe those uppity dockworkers have something to worry about.

Thu, 02/05/2015 - 15:34 | 5748571 Philo Beddoe
Philo Beddoe's picture

 

The association of shipping lines, terminal operators and stevedores made public details of its contract offer, including 3 percent annual raises over five years, retaining employer-paid health care, and raising pensions by 11 percent. The average dockworker now makes $147,000 a year in salary, plus $35,000 a year in employer-paid health care and an annual pension of $80,000, according to an association press release.

 

Just that? Want somebody to wipe your ass as well? Poor babies. 

Thu, 02/05/2015 - 15:37 | 5748592 Son of Loki
Son of Loki's picture

WTF !?

 

Why am I studying to become a geriatric neuroproctologist for 28 years and huge debt, when I can simply join the union and lift bags and start raking in the doe alot earlier in life?

Thu, 02/05/2015 - 15:42 | 5748624 Philo Beddoe
Philo Beddoe's picture

You have skills they do not. Something will give. It already has actually. These bullshit high paying union jobs are going the way of the dinosaur. 

Thu, 02/05/2015 - 15:52 | 5748670 Elliott Eldrich
Elliott Eldrich's picture

Geriatric neuroproctologist? That's... interesting.

Thu, 02/05/2015 - 16:12 | 5748782 Oldwood
Oldwood's picture

Sounds deep..and flatulent.

Thu, 02/05/2015 - 17:54 | 5749312 Ying-Yang
Ying-Yang's picture

a medical professional that studies the relationship between someones brain, nervous system and the shit they have accumulated in it.

Thu, 02/05/2015 - 20:05 | 5749823 Thenardier
Thenardier's picture

Looking up the bowels of the stars

Thu, 02/05/2015 - 20:26 | 5749887 Pareto
Pareto's picture

+10000 bahahahahahahahahahahahahahaha

Fri, 02/06/2015 - 06:55 | 5751022 Gold Dog
Gold Dog's picture

Maybe you can help me.

I have Optorectitus. It's an inflamation of the nerve that connects my eyes and my asshole and gives me a shitty outlook.

Thu, 02/05/2015 - 20:24 | 5749882 swmnguy
swmnguy's picture

Are you going to be working with old people who have their heads up their asses?  What a specialty!  Especially if it takes 28 years of school and they still haven't taught you that you rake in "dough," not "doe."  Maybe  the Union life is for you.  It pays much less than your specialty though.  I assume that's mostly paid by Medicare, and contrary to the mythology, all Medicare fraud is done by the medical industry.

Thu, 02/05/2015 - 15:47 | 5748650 SpanishInquisition
SpanishInquisition's picture

When you ship all the manufacturing to China and put millions of people out of work, the CEOs are prevented from being able to reap absolutely all the profits from that because someone has to unload the stuff off the docks.

Thu, 02/05/2015 - 16:14 | 5748798 Oldwood
Oldwood's picture

I would suggest that very little that comes across our docks is much of a necessity, so if you think their prices are too high or the executives are making too much, you can definitely just stop buying the crap. It would be doing us all a favor.

Thu, 02/05/2015 - 15:41 | 5748572 dexter_morgan
dexter_morgan's picture

 

The association of shipping lines, terminal operators and stevedores made public details of its contract offer, including 3 percent annual raises over five years, retaining employer-paid health care, and raising pensions by 11 percent. The average dockworker now makes $147,000 a year in salary, plus $35,000 a year in employer-paid health care and an annual pension of $80,000, according to an association press release.

 

Fuck.........that there is some good money - deosn't that put these stevedores (whatever the fuck that is) somewhere around the upper 2% of US workers?

 

What about 98%'rs?????????

 

Thu, 02/05/2015 - 16:14 | 5748795 PTR
PTR's picture

dexter_morgan (or anyone for that matter,) please explain 11.3 & 11.5

 

The Economist minds want to know.

Thu, 02/05/2015 - 16:41 | 5748859 dexter_morgan
dexter_morgan's picture

Those were the numbers on the 2 arrows on the Jan Economist cover........I figured they were Euro formatted dates- March 11 and May 11, but someone just told me they could be IP's. We all know how the ZWO like the 11th day of months.......

11.3.11.5 and 11.5.11.3 are DOD IP's. Only the artist and others in 'the club' know for sure.

 

http://www.zerohedge.com/news/2015-01-10/surreal-sinister-world-2015-acc...

Thu, 02/05/2015 - 16:48 | 5749010 PTR
PTR's picture

I just saw that page, plus comments.  I thought the meaning had been "discovered" in the meantime.  Thanks.

Thu, 02/05/2015 - 16:52 | 5749027 dexter_morgan
dexter_morgan's picture

If it has, let me know because I hadn't heard that.

If nothing noticeable happens on March 11, I guess besides feeling like a 'Millerite' , it may mean it's not a date.

Thu, 02/05/2015 - 15:34 | 5748574 heywood2
heywood2's picture

 I don't get it - how hard can it be to train a new batch of crane operators and other dockworkers? Hell, I'll bet you could get a flood of applicants if you offered $70K/year - half of what these clowns make. No pension or healthcare required.

 

Thu, 02/05/2015 - 15:50 | 5748602 JailBank
JailBank's picture

I was stationed at Charleston AFB, SC years ago and got to know some of the locals while I was there. You don't just get a job runing those cranes for $150,000 a year, you have to be connected. The Gotti family used to run the ports in Charleston, not sure if they still do, but I would bet some indiviuals would have property and personal injury heaped upon them for taking those jobs. Ah the world is a wonderful place.

Thu, 02/05/2015 - 16:42 | 5748974 Clarabell
Clarabell's picture

Why pay $70K/year? Why not go all the way and offer $7.25 an hour - minimum wage. Max 30 hours a week so they don't get health care. They can collect Food Stamps however. That way they would be able to double the CEO pay out. I want everyone in the U.S. to be just like Walmart workers. It's only fair.

Thu, 02/05/2015 - 15:34 | 5748576 DirkDiggler11
DirkDiggler11's picture

Damn, so much for all of the lead contaminated shit pouring into the US from China, oh the humanity !!!!!

Let the dock workers rot like fish, bunch of overpaid freaking truck driver wannabes.

Thu, 02/05/2015 - 15:34 | 5748578 JailBank
JailBank's picture

These people are not working for the betterment of the central plan. They should all be taken away for reeducation. THERE IS A PLAN. WE HAVE A PLAN! 

Thu, 02/05/2015 - 15:34 | 5748579 buzzsaw99
buzzsaw99's picture

fuck 'em

Thu, 02/05/2015 - 15:35 | 5748581 no more banksters
no more banksters's picture

Potential Western media propaganda narrative: workers are Putin's agents!

Thu, 02/05/2015 - 17:01 | 5748658 kowalli
kowalli's picture

workers are Putins - fixed for you. Putin clone himself =)

Thu, 02/05/2015 - 15:40 | 5748591 Theta_Burn
Theta_Burn's picture

Everybody calm down...

Concessions will be made on both sides..

OR

A Ronald Reagan solutiuon would be handy about now..

 

http://www.politico.com/news/stories/0808/12292.html

Thu, 02/05/2015 - 15:48 | 5748651 twh99
twh99's picture

The Maritime Association did make a concession.  Guess what the dock workers did then?  Came back on Wednesday with 12 additional demands.  That is why the talks broke down.

Thu, 02/05/2015 - 15:37 | 5748593 Bingo Hammer
Bingo Hammer's picture

"The average dockworker now makes $147,000 a year in salary, plus $35,000 a year in employer-paid health care and an annual pension of $80,000, according to an association press release"

Wow! $182,000.oo USD pa!!! For the "average" dockworker,...I'm in the wrong job

Thu, 02/05/2015 - 15:39 | 5748603 Theta_Burn
Theta_Burn's picture

 This is the reason the unions have destroyed themselves...

Thu, 02/05/2015 - 17:12 | 5749126 Clarabell
Clarabell's picture

These salaries are total bullshit. The average dock workers salary in the U.S. is $23,000 a year.

http://www.indeed.com/salary/Dock-Worker.html

I highly skilled crane operator may make a bit more

Thu, 02/05/2015 - 18:09 | 5749366 Emergency Ward
Emergency Ward's picture

Wrong job category.  That link refers to a loading dock worker at a Target or Walmart.  Port of Long Beach crane workers make way over $100k.  Stevedores and longshoremen.

Thu, 02/05/2015 - 18:17 | 5749426 Clarabell
Clarabell's picture

More bullshit!

Longshoremen in Califorina salary = $29,000

http://www.indeed.com/salary?q1=longshoremen&l1=california

Fri, 02/06/2015 - 00:01 | 5750545 sheikurbootie
sheikurbootie's picture

Clarabell You haven't a clue!  Stop with cut and paste bullshit!  Do you actually know a dock worker in Cali?  I do and they make major jack for doing a UNION job, which means as little work as fucking possible.

Thu, 02/05/2015 - 15:38 | 5748600 Miss Expectations
Thu, 02/05/2015 - 15:53 | 5748681 juggalo1
juggalo1's picture

How many of those are equipped with the cranes, depth and rail facilities to handle a 15,000 TEU containership?  How about 4 per day?

Thu, 02/05/2015 - 16:23 | 5748845 Uncle Remus
Uncle Remus's picture

Who the fuck cares? Those fancy ports aren't handling jack now.

 

Thu, 02/05/2015 - 16:50 | 5749017 Benjamin123
Benjamin123's picture

Fuck them for not planning ahead.

Thu, 02/05/2015 - 15:39 | 5748601 oklaboy
oklaboy's picture

this sounds like fun

Thu, 02/05/2015 - 15:39 | 5748605 Madcow
Madcow's picture

Baltic dry says "global trade" is a thing of the past - So why bother trying to rescue the ports? 

Thu, 02/05/2015 - 15:39 | 5748606 LFMayor
LFMayor's picture

ALL UR RUBBAH DOGSHITS BELONG TO US.

Thu, 02/05/2015 - 15:39 | 5748607 mattgallis
mattgallis's picture

How will anyone ever managed to get by without their worthless junk from Manila!

Thu, 02/05/2015 - 15:39 | 5748608 Goldbugger
Thu, 02/05/2015 - 15:39 | 5748609 1stepcloser
1stepcloser's picture

Now where is that mexican port located again... 

Thu, 02/05/2015 - 15:42 | 5748617 Mike Honcho
Mike Honcho's picture
Charley Malloy: Oh I had some bets down for you. You saw some money.
Terry Malloy: You don't understand. I coulda had class. I coulda been a contender. I coulda been somebody, instead of a bum, which is what I am, let's face it. It was you, Charley.

 

If you don't know what that is from, slap yourself.

Thu, 02/05/2015 - 16:24 | 5748856 Uncle Remus
Uncle Remus's picture

Data fucking around on the holodeck again?

Thu, 02/05/2015 - 15:41 | 5748618 Joebloinvestor
Joebloinvestor's picture

All the new Obama guests with their bogus paperwork need to be bussed to the docks for the new jobs that just became available.

Thu, 02/05/2015 - 15:41 | 5748620 Callz d Ballz
Callz d Ballz's picture

Fire them!

Thu, 02/05/2015 - 15:43 | 5748633 VonSalza
VonSalza's picture

Poor dockworkers, this wil be their last strike. Robots will take over their jobs soon.

Thu, 02/05/2015 - 15:46 | 5748644 twh99
twh99's picture

Actually that is one of the issues.  The Maritime Association wants to install container moving robots similar to what they have in Europe, but the dock workers aren't thrilled by that notion.

Thu, 02/05/2015 - 16:36 | 5748931 Benjamin123
Benjamin123's picture

They have a right to fight for their own benefit. Not a right to succeed, but a right to try, as we all do.

Thu, 02/05/2015 - 20:22 | 5749875 Pareto
Pareto's picture

An illconceived right.  Like I said "everybody is equal, but some are more equal than others."  So let me fix it - they have a right to demonstrate their value - that they are priced efficiently - that "they" are as good as it gets.  I agree - they have that right - but - lets be clear.  In the market place I have a right to fight for my own benefit too, but, I do so on the basis that I actually compete for the benefit of various market participants.  In other words, if I cannot show benefit to others, then by implication, I cannot show benefit to myself.  The unions (in general) have never understood this - its all about them and fuck the employer thats paying them.  Its a work to rule arrangement built on coercion and forced extraction of value from one group of people to another - not a stitch of it is voluntary.  Its a fucking racket by any measure.  

Fri, 02/06/2015 - 03:05 | 5750867 Benjamin123
Benjamin123's picture

You dont compete for the benefit of anyone but yourself.

Thu, 02/05/2015 - 16:18 | 5748823 LetsGetPhysical
LetsGetPhysical's picture

Robots? You're being way to generous. You could train a monkey to do their job. And he wouldn't have to be one of those super smart astronaut monkeys either. 

Thu, 02/05/2015 - 17:10 | 5749100 rejected
rejected's picture

Apparently they're smarter than a lot of PhD's coming out of college these days working at Taco Bell

 

Edit: Ive worked docks. It's a hard job for the most part. Make even monkey's sweat. Not good for those that think 20 bucks an hour is too much for Amerikano...

Thu, 02/05/2015 - 15:44 | 5748636 twh99
twh99's picture

I own a small import company that relies on those docks.  The work slowdown started in September and has gotten steadliy worse every month.

In December it was taking two weeks just to unload one of those container ships and then it took 5-7 days until the container could be moved from the yard to the consolidater for delivery.

I complained to our forwarding agent that instead of talking the Maritime Association should DO SOMETHING!

If it was up to me I would have fired them and replaced them.  At $120K minimum, I bet I could find many many people who would take those jobs.

Thu, 02/05/2015 - 16:35 | 5748924 Benjamin123
Benjamin123's picture

You would have to fire all of them at the same time.

Thu, 02/05/2015 - 17:38 | 5749240 twh99
twh99's picture

If only I was king.

Thu, 02/05/2015 - 15:50 | 5748663 kowalli
kowalli's picture

Such a great day today

Thu, 02/05/2015 - 15:51 | 5748669 Harnar
Harnar's picture

Almost 3pm... almost time for some unbelievably bad news to be released and promplty ignored. 

Thu, 02/05/2015 - 15:52 | 5748672 Salsipuedes
Salsipuedes's picture

I'm assuming this will have no effect on the illegal drug supply chain so it should have relatively little impact on the overall economy and basic mental stability of the populace. 

Thu, 02/05/2015 - 20:35 | 5749920 lakecity55
lakecity55's picture

Uh, those workers are not unionized, so you are correct.

I went inside a semi-submersible a few years ago. We were told to wear masks. I did not. Those things were full o coke.

Thu, 02/05/2015 - 15:53 | 5748680 SnatchnGrab
SnatchnGrab's picture

I get that dockworking is hard, demanding, physical labor. But dayamn.

Hey dockworkers - ask Detroit's autoworkers about pricing themselves out of a job. Yeah the ports are fixed (location), but, there comes a point when you cost too much.

80k PENSION? Who foots THAT bill?

Thu, 02/05/2015 - 16:02 | 5748730 twh99
twh99's picture

You do by paying more for imported products.  The retailers and other users of the ports just roll those costs into their products.

Thu, 02/05/2015 - 15:57 | 5748705 joego1
joego1's picture

We locked some folks out.

Thu, 02/05/2015 - 15:58 | 5748711 TrustbutVerify
TrustbutVerify's picture

What...the astronomical union wages mentioned in the syory aren't enough?  This is what happens when the union cartel of labor is in charge.  Its seems evident they have the downline workers by the short hairs.  And they claim they are the average worker...what a joke. 

On the other hand, all those foreign made employment stealing goods 'don't get to be bought.' Suddenly, we might consider buying (non-union) US made goods that actually put people to work here.  

Thu, 02/05/2015 - 16:04 | 5748737 twh99
twh99's picture

At what 30-50% more than the imported stuff?

I'll tell you what, you go first.

Thu, 02/05/2015 - 20:27 | 5749888 TrustbutVerify
TrustbutVerify's picture

No, pay a little more for stuff made here.  And do I do it?  I try.  I found online a place in Kentucky that makes men's underwear and bought some direct from the factory.  I don't think it was any more expensive.  But then...it takes some effort...and backbone. Something Americans seem short of these days.  

There are jeans made in the US, too.  But they're not the phony American brands: Levi's, Wrangler's or Lee.  

One has to do make some effort which can be done on the internet or when on foot in stores - and refusing to buy when you knw there are American alternatives.  

The $200,000 or so the longshoremen make seems stupid excessive.  The $72 per hour ($5 per hour is 10,000 per year - do the math) the autoworkers were making also seemed other worldly.  Should I support this union labor cartel?  I think not.  

Thu, 02/05/2015 - 16:38 | 5748945 swmnguy
swmnguy's picture

Paying those astronomical wages to get container ships unloaded of plastic shit made by Chinese slaves has certainly impoverished the Walton family, hasn't it.

Thu, 02/05/2015 - 17:02 | 5749082 rejected
rejected's picture

Exactly!

Thu, 02/05/2015 - 20:28 | 5749892 TrustbutVerify
TrustbutVerify's picture

Don't buy it. 

Thu, 02/05/2015 - 17:04 | 5749080 rejected
rejected's picture

Can't figur out why most in this country are against decent wages. It wasn't the employee wages that kills the company... it is the LOW wages most others are making. Why does everyone seem to want everyone making two bucks a day...

Thu, 02/05/2015 - 17:36 | 5749238 silverer
silverer's picture

Decent wages are gone.  We had decent wages when we had sound money.  Sound money is gone.  Special clubs may get ahead a bit by using extortion tactics, but that's just part of the rot happening in this country.

Thu, 02/05/2015 - 20:24 | 5749878 lakecity55
lakecity55's picture

Hi. Bath House here. It is unfair Americans make astronomical figures like 8$ an hour, when people in Bangladesh make only 5$ a Whole Day! Americans must learn to lower their expectations, and I will see it is done with Pen and Phone!!

Thu, 02/05/2015 - 16:05 | 5748744 Jameson18
Jameson18's picture

SO WHAT FIRE THEM ALL.

Harper-Peterson has been flat for years and the Baltic Dry is at its lost level ever.

Nothing coming or going.

So Fuck them there isn't any work anyway.

Thu, 02/05/2015 - 16:07 | 5748755 kowalli
kowalli's picture

you can't

Thu, 02/05/2015 - 16:10 | 5748775 Jameson18
Jameson18's picture

Hostess did. All 27 unions.

 

Thu, 02/05/2015 - 17:30 | 5749213 Benjamin123
Benjamin123's picture

27 unions do not sound like an actual "union".

Thu, 02/05/2015 - 17:34 | 5749224 silverer
silverer's picture

Try the Teamsters.  They were in on that one.  They're not an actual union?

Thu, 02/05/2015 - 17:44 | 5749268 Benjamin123
Benjamin123's picture

27 unionS are not "an union".

 

Thu, 02/05/2015 - 16:07 | 5748756 Jameson18
Jameson18's picture

I'm not done yet.

Tell them to go ask  the Stockton Ca. workers how everything worked out. Or if they don't like that answer they could try Detroit.

F them.

Thu, 02/05/2015 - 16:33 | 5748914 Benjamin123
Benjamin123's picture

You have a dog in this fight?

Thu, 02/05/2015 - 18:51 | 5749573 sheikurbootie
sheikurbootie's picture

Don't act like you're a fucking brain surgeon and actually "highly trained".  Give me a fucking break. 

Fri, 02/06/2015 - 03:04 | 5750866 Benjamin123
Benjamin123's picture

Im a physicist and have never operated a crane.

I operated lathes and milling machines, though..

Thu, 02/05/2015 - 20:14 | 5749856 Pareto
Pareto's picture

No - but he makes a fucking point and you don't!  prick. Unions = "everybody is equal but some are more equal than others".  Its legitimized extortion - and their extortion is non-fucking- negotiable.

 

fire the fucking lot of em.

Thu, 02/05/2015 - 23:34 | 5750486 seataka
seataka's picture

TBTF

 

(Means too much cash going into politicians pockets to be allowed to fail)

 

 

Thu, 02/05/2015 - 16:14 | 5748791 Obamamerica
Obamamerica's picture

Why is the longshoremen union allowed to be so powerful?

Thu, 02/05/2015 - 16:23 | 5748848 LetsGetPhysical
LetsGetPhysical's picture

PAC money to the DNC. 

Thu, 02/05/2015 - 16:14 | 5748800 IndianaJohn
IndianaJohn's picture

The Walmart shelves are empty. I hope that my country can survive.

Thu, 02/05/2015 - 16:17 | 5748815 Seize Mars
Seize Mars's picture

There is no labor union that doesn't use violence or the threat of violence. I have zero fucking sympathy.

Thu, 02/05/2015 - 16:49 | 5749012 Benjamin123
Benjamin123's picture

So does everyone. The cops are the tool of choice.

Thu, 02/05/2015 - 16:23 | 5748835 roadhazard
roadhazard's picture

I guess dock workers are getting pissed losing out to the 1% all the time. Every once in a while you have to decide what you are worth or someone else will decide  for you. As the Unions have gotten busted the Middle Class shrinks.

Thu, 02/05/2015 - 17:51 | 5749298 Theta_Burn
Theta_Burn's picture

A living wage would be nice.

That didn't go over so well with the McD's workers demands tho..

I have decided that I'm worth 200K a yr. that because my uncle, brother, or son has tenure on that job, and with their endorsement, that entitles ME not you to get it. for scary talented forklift and crane operators..

 

Your premise blows..

 

Thu, 02/05/2015 - 16:23 | 5748849 Herdee
Herdee's picture

It's being re-routed through Canada and Mexico.Warren makes money by rail.

Thu, 02/05/2015 - 16:24 | 5748857 Jethro
Jethro's picture

Labor Unions could fuck up a wet dream.  That's not a ringing endorsement on their efficacy, and if they actually managed to acheive any goal other than substantiating the fact that they are a collective of retards (my apologies to Jerry's Kids), it'd be purely by happenstance.

 

Thu, 02/05/2015 - 17:54 | 5749313 bunnyswanson
bunnyswanson's picture

Hey creep, in 1938, my mother as an orphan was sent on a train at the age of 8 to Niagra Falls to work at a sewing factory in order to meet a deadline.  Many orphans and misplaced children ended up in this factory where they worked for 60 days and then were returned (St. patricks in Prince Albert in mother's case).

Now, what were you doing at the age of 8 you pitiful excuse of a man?  The coal mining town i grew up in was another example of what life before unions would do to a man - end his life at 40-45 - BLACK LUNG.  That is, if accident did not kill him first. 

You lazy fucks are going to do us all in.  What is wwrong with you people.  sorry for typos.  i have flu and but there is an uregency that cannot be ignored.  NOW OR FUCKING NEVER AMERICANS.  do not force the world to listen to your screams as you stand up for you nation or watch you die on your knees while you beg for a life.

 

we begged you for DECADES to stop what is coning.

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