West Coast Dockworkers Oppose Technological Upgrades - Case Study Example

Your Academic Organization Your Appropriate Labor Dispute Analysis: West Coast Dockworkers Oppose Technological Upgrades Introduction This paper will focus around a recent labor dispute involving dockworkers involved in the shipping industry on the West Coast of the United States. In the fall of 2002, members of the International Longshore and Warehouse Union perceived a threat to their job stability by the proposition of leadership within the shipping industry to install container-tracking technology composed of scanners and computer-aided devices (Nickels et al, 375). A labor dispute ensued, which threatened the stability of the Pacific shipping system. Historical Background The aforementioned proposed upgrades to the shipping industry threatened more than 400 jobs, as the new technology would completely obliterate the necessity for manual tracking. Historically, the dockworkers performed all of the tracking functions for both inbound and outbound shipping freight manually, thus the implementation of new technology would eliminate the need for workers who performed the manual tracking function. The dockworkers immediately went into action to oppose the technological enhancements utilizing the authority of the union. With a substantially high number of jobs at risk, dockworkers were accused by shipping managers of deliberately slowing their work to a crawl, which began to interrupt the flow of goods into the United States. Union officials denied this allegation, stating that the union laborers were merely working at a safer speed due to safety precautions stemming from an incident where five dockworkers had died in work-related accidents earlier that year. Shipping managers argued that the dockworkers were halting their work efforts to prevent the installation of the new tracking technology. In retaliation for the work slowdown, shipping management initiated a lockout of all unionized dockworkers, ultimately halting the entire flow of goods to the West Coast. During the lockout, countless billions of dollars worth of perishable merchandise sat rotting in the storage area of vessels. Further, the entire U.S. economy was estimated to be losing over $1 billion during every day of the lockout. As the lockout continued, countless shiploads of Christmas merchandise were due to arrive, preventing holiday-related goods from making it to the shelves of retail centers. This lockout continued for 12 days until another external influence exerted its authority to put an end to this dispute which was proving costly to the American economic system. Legal Implications The administration of President George W. Bush considered this lockout and labor dispute to be more than merely an economic loss, but also proved to be a risk to national security. Because of the high negative impact to both financial stability and the disputes affect on Homeland Security, President Bush invoked the Taft-Hartley Act and ordered dockworkers back to work and subsequently forced the union and shipping management to the bargaining table. The Taft-Hartley Act established methods to deal with labor-related situations which affect national health and safety. Under this act, the federal government can impose its ultimate authority to prevent interruptions to critical industries, such as the West Coast shipping system. Under this act, the president can demand that both sides of a labor dispute forego lockout or striking activities in pursuit of active negotiations, cited as a cooling-off period. President Bush called for the maximum number of days during this cooling-off period, exerting an 80 day period where dockworkers must remain active in their industry. Because of the presidents invocation of the Taft-Hartley Act, any local regulations were superseded by federal authority. Key Participants The primary participants in this particular labor dispute involved dockworkers and shipping technicians who were members of the International Longshore and Warehouse Union. In the same respect, union officials represented the disgruntled laborers, who maintained the authority to pursue negotiations and ratify any proposed contract. Moreover, the Pacific Maritime Association, which consists of various management in the shipping industry, represented not only their own business-related economic interests, but also as representatives who must ensure that the critical shipping industry meets the demand of the entire country. In 1981, then President Ronald Reagan had fired striking air traffic controllers for violating the Public Employees Relations Act. With such authority in mind from a federal level, most assuredly another key participant in this dispute was the Bush administration. Negotiating Techniques Collective bargaining was used to resolve the labor dispute, whereby union and shipping management representatives worked to form a comprehensive labor-management contract which is intended to satisfy both parties. It took over three months for both parties to iron out a satisfactory agreement, during which time a bargaining zone offered various contract related offers which were either approved or refuted by both the union representatives and management. Managers were adamant that the upgrade to technological scanning and tracking devices were crucial to the success of the West Coast shipping industry, where union workers were willing to concede to the technology in replacement of higher wages and health care coverage to ensure job stability. In best description, this labor dispute used a collaborative bargaining approach as both sides recognized their vital contributions to aiding in stabilizing the United States economy and both participants in the dispute wanted concessions that favored individual agendas. Collaborative negotiating techniques allowed for a mutual exchange of demands to finally compose an equitable contract agreement. Dispute Resolution After months of collective bargaining, the International Longshore and Warehouse Union finally ratified a six year contract designed to satisfy both the union laborers and management. This agreement allowed for the use of the new tracking technology, which would still eliminate the original 400 jobs. However, in benefit to the displaced workers, management agreed that these terminated workers would be retrained in a different area of shipping business and offered new careers. Moreover, the union workers all received a 12 percent increase in their salary and total absorption of health care costs by the shipping industry. Pension benefits for the union workers also increased as part of this new contract agreement. Management was able, through this newly ratified union contract, to establish the means to upgrade the technological aspect of container tracking which fulfilled their primary agenda. In return, any employees who might be displaced by future upgrades would be secured positions under union jurisdiction to avoid pending layoffs. Furthermore, any new positions created by the West Coast shipping industry will consist of unionized members. Resolution Implementation The ratification of the new six year contract spelled out the obligations of both union workers and management, and it is this contract that secures compliance to the agreement. This contract allows employees to file a grievance if they witness situations where management is not abiding by the negotiated agreements in the new labor contract. The new technological innovations have been incorporated into the West Coast shipping system and are, today, operating without manual tracking. All of the 400 workers were summarily trained in various shipping operations, as well as several shipping clerks who were displaced by the technology, and granted union representation in their new positions. Further, the National Labor Relations Board routinely monitors whether management continues to comply with the agreement and acts as an overseer to ensure that the agreement details are carried out. Conclusion The members of the International Longshore and Warehouse Union felt threatened by the implementation of new technology and chose to combat this threat to job security by slowing down their work efforts. In situations such as these, there is little other action that can be taken to oppose the loss of many jobs without a formal strike. However, management representatives have several tools at their disposal to prevent opposition to much-needed technological innovation; one of which is a lockout. Though a lockout generally inhibits the productivity of a particular industry, managers cannot sacrifice upgrades simply for the sake of implementing job security for its workers. There could have been serious repercussions for the economic stability of the United States if this lockout or mutual disagreement had endured for an extended period of time. The ability of the federal administration to demand negotiations, as in this labor dispute, secured the interests of countless citizens who rely on the regular flow of coastal merchandise deliveries. It is the opinion of this author that federal intervention acted as the catalyst to end this dispute timely and exerted pressure to ensure an equitable outcome for both parties. Bibliography Nickels, William G., McHugh, James M. & McHugh, Susan M. Understanding Business 7th ed. McGraw-Hill Irwin, 2005. Nyhan, Paul. Dockworkers Vote to Ratify Contract by 89% Margin. Seattle Post Intelligencer, Jan 23 2003. Retrieved 11/9/06 from http://seattlepi.nwsource.com/business/105386_docks23.shtml Read More