Demand for workers is high, and the supply chain is still struggling to catch up from the pandemic doldrums that left ships backed up and packed up with goods waiting to be unloaded.
And for that reason, Guy Williams, president of Gulf Coast Bank and Trust, told Newell Normand on WWL Radio that the perfect storm could be rising for port workers on the west coast to get a hefty pay increase.
“On the first of the year, as luck would have it, the longshoreman’s contract comes due,” Williams said. “It’s a six-year contract, and it’s up for renewal in January. So if you’re in the Port of Los Angeles or any port on the west coast, you can expect significantly higher labor costs next year. Because the longshoremen really do have the strong hand.”
“It’s like you’re playing in the World Series of Poker, and someone has four aces,” Williams continued. “It’s very difficult to negotiate with that person.”
Williams said don’t expect the unions to be fazed by any bad publicity related to using COVID-induced backups as a bargaining chip.
“Unions have been criticized in the past for taking advantage of a tough situation,” Williams said. “But if you’re running a union, that’s a criticism you’re willing to take. Because it’s criticism from the outside. Your members are saying, ‘Hey, this is our moment. Get all you can.’”
When asked whether President Joe Biden might get involved to rein the labor unions’ demands in should they get too exorbitant, Williams cited Biden’s own words when touting his recently-passed infrastructure bill.
“He said, ‘This is going to result in good jobs, good union jobs, not $12-an-hour jobs, not $14-an-hour, not $15, but $45-an-hour jobs,’” Williams said. “So if anything, I think he’s going to be cheerleading on the union side saying it’s time for a big pay increase.”