Let’s separate the facts from the fiction on unions and the threat that they pose to the U.S.

When was the last time you heard a union even mention worker safety (a position often espoused by unions in the U.S. early in their history)?

Union leadership does not care about worker safety. Union leadership cares about its power and that is directly related to money.

A look at the recent International Longshoremen’s Association (“ILA”) strike and ongoing negotiations provides an interesting case study on unions.

The ILA represents longshoremen at the East and Gulf Coast U.S. ports. Currently, moderately experienced dockworkers earn $39 dollars an hour. The ILA is demanding $69 an hour, a 77% increase, plus restrictions on automation.

The ILA dockworkers currently have (sometimes for no-show hours or jobs) a base pay of over $81,000 a year, with many making more than $100,000 a year. Some ILA members even earn significantly greater than $200,000 a year, and a select group make in excess of $450,000 annually with overtime and other incentives, which trails the almost $233,000 on average earned per year by West Coast longshoremen who are organized under a different union.

Nevertheless, the ILA turned down management’s initial offer of a 40% wage increase over six years and revised offer, under Biden administration pressure, of 50% over the same period, which represents an 8.33% pay raise per year. The ILA only agreed to return their members to work and continue negotiations until January 15, 2025 on a final deal after receiving and tentatively agreeing to a Biden administration-induced management offer of a 62% pay increase over six years, or 10.33% wage hike per year, which could result in some dockworkers making more than $500,000 a year.

The worst of these negotiations is yet to come and has been conveniently pushed off until after the upcoming election by the Biden administration, as the ILA has made it clear that it will fight the implementation of automation and its benefits for worker safety.

Past ILA demands, including its resistance to automation, have made these ports inefficient and uncompetitive globally.  No U.S. port currently ranks in the top 50 worldwide with respect to productivity.

These demands are being spearheaded by Harold Daggett, head of the ILA, who made over $900,000 last year, owns yachts, drives a Bentley, has a $1.4 million-assessed Florida house, and lives in a $2.4 million New Jersey mansion. In addition, Daggett has had civil and criminal charges brought against him by the Justice Department for conspiring with mob bosses. He was acquitted of the charges, but not before Lawrence Ricci, a co-defendant, was found dead in the trunk of a car.

The actions of the ILA amount to government-endorsed extortion.

How many people in the U.S. earn well into six-figure compensation per year for any job, much less positions that do not require a college degree, call for minimal if any training, and involve easily replaceable workers? How can we let a small group of workers make U.S. ports inefficient, which hurts our economy and thereby negatively impacts the well-being, safety, and security of the country and its citizens? If professionals and non-professionals alike are impacted by artificial intelligence and automation, why should longshoreman be protected? If management cannot organize due to antitrust laws, why should labor be allowed to form unions to the detriment of the U.S.?

Unions are an artificial restraint on trade. They increase costs that are eventually passed on to consumers. Unions create inefficiencies that make the U.S. less competitive. They have historically been homes for mobsters and Marxists alike. Unions have outgrown their original purpose of protecting workers and become an anchor on U.S business and the country as a whole. Unions enrich union leadership and benefit the politicians that support them at the expense of the country.

In examining unions in a macro sense, we should take a lesson from Europe, a region with a historically union-based economy. Viewing the world economically since the end of World War II, Europe has declined while the U.S. and Asia have grown. European workers generally work fewer hours per year than those in the U.S. and Asia. Europe, which during the early part of the post-World War II period economically outperformed Asia, is struggling to maintain its relevance as the U.S. and Asia continue to expand.

Historically, empires have built their world reach and military power on economic superiority. The U.S. must not follow the failing pro-union European model, and push aside unions. This will better position the U.S. to compete with the threat from China and other nations, as well as maintain our preeminence in the world.

While U.S. politicians may pander for union support to win elections and increase power, they must not lose sight of these fundamental issues.

In summation, we must consider the facts and not be fooled by the fiction.

And that’s my take.

_______________

Perry V. Kalajian is an attorney, consultant, and analyst with extensive experience in the areas of banking, finance, and restructuring. He possesses multiple degrees in each of the areas of business and law. Mr. Kalajian has had numerous appearances on Newsmax TV.