Port Workers Take a Stand: Demanding Fair Compensation
The International Longshoremen’s Association (ILA) is gearing up for a potentially lengthy work stoppage on January 15, following a brief strike in October. This time, the stakes are higher, and the outcome could have far-reaching consequences for the entire industry.
The Great Divide: CEO Compensation vs. Worker Wages
The recent killing of UnitedHealthcare CEO Brian Thompson has brought attention to the staggering gap between CEO compensation and worker wages. UnitedHealth Group’s board awarded its former CEO, William McGuire, with $1.6 billion in stock options over 15 years, on top of millions in salary, bonus, and other forms of compensation. This is not an isolated incident; CEO compensation has skyrocketed 1,085% since 1978, compared to a mere 24% increase for the typical worker.
The Rise of Worker Power
The ILA is demanding better wages and benefits, and they’re willing to walk off the job to get them. With technology decreasing the need for new hires, workers want a share of the profits generated by increased efficiency. Container shipping lines, like Maersk, have reaped windfalls during the coronavirus crisis, funding acquisitions and rewarding executives with enormous compensation packages.
Data-Driven Demands
Thanks to the internet, workers and union leaders now have access to data on CEO compensation packages, including salary, bonuses, long-term payouts, and perks like security, tax preparation, and car reimbursement. This transparency has fueled workers’ resolve to hold fast to their demands.
A Lesson from Boeing
The recent strike by aircraft mechanics at Boeing, which lasted seven weeks, demonstrates the power of workers to bring a giant corporation to a grinding halt. Ignoring demands for a 9.5% annual pay increase resulted in a $10 billion loss, a 25% drop in stock price, and a degraded bond rating.
A New Era of Collective Bargaining
The ILA is pushing for a 61.5% increase in wages over six years, but it still needs approval to introduce more automation at the ports. If the United States Maritime Alliance (USMX) wants to avoid a protracted work stoppage, it needs to recognize the ILA’s leverage and reward its members with gains realized from increased efficiency.
Rethinking Corporate Priorities
Corporate boards must acknowledge that rank-and-file workers are equally important as management for generating shareholder value. The misguided belief that shareholders are the most important stakeholders has led to a focus on profit over people. It’s time to flip the script and recognize the value of employees in creating long-term success.
The Future of Work
As workers at the ILA and other unions, including Starbucks, take a stand, they’re sending a clear message: they’re willing to leverage their collective value to shareholders to get fair compensation. If corporate boards fail to recognize the huge gap in compensation, it will lead to more unionization and work stoppages, hurting shareholders, workers, customers, and the economy.
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