What Does Obamacare Have To Do With International Shipping Stability?

What Does Obamacare Have To Do With Worldwide Delivery Stability?

A billion {dollars} a day.

That’s all estimates say strikes or lockouts at West Coast ports value the U.S. economic system.  As Seth Meyers would say, “To offer you an thought of how a lot cash that’s, I can’t provide you with an thought of how a lot cash that’s.”

May we be West Coast port shutdowns this summer time?


As soon as once more, it’s a contract 12 months for union longshoremen.

Already? Didn’t this simply occur?


Shippers, carriers, and worldwide transport professionals like freight forwarders are take a look at contingency plans for the potential for West Coast ports shutting down attributable to labor contract disputes.

In 2012/2013, we have been coping with this on the East Coast. Now it’s the West Coast’s flip. And right here’s a well-known identify for controversy on the forefront of the dialog: Obamacare.

Fairly presumably the largest problem that would clog up negotiations between the Worldwide Longshore and Warehouse Union (ILWU) and the Pacific Maritime Affiliation (PMA), thwarting stability in worldwide transport, finds its supply in Obamacare.

What on the earth may Obamacare presumably should do with worldwide transport stability?

The Inexpensive Well being Care Act, the precise identify of Obamacare, has a factor in it referred to as a “Cadillac” tax. Obamacare’s Cadillac tax is a tax on beneficiant well being care plans to subsidize well being take care of U.S. staff who’ve little or no medical health insurance.

For union staff of the ILWU, employers pay 100% of the premiums of their well being care plan and union members solely pay a $1 co-pay for prescription drugs.[1]

What?! That’s not a Cadillac well being care plan, that’s a Lamborghini well being care plan!

Anyway, ILWU members actually obtain beneficiant well being care plans that shall be taxed by the “Cadillac” tax of Obamacare beginning in 2018.

This tax will value the trade $150 million a 12 months that employers don’t need to pay for completely. And “the ILWU has at all times thought of medical advantages to be sacrosanct.”[2]

In different phrases, count on numerous huffing and puffing over the healthcare problem in these negotiations.

Now, it’s potential, the events could conform to make this solely a 3 12 months contract as a substitute of a six 12 months contract, hoping that the “Cadillac” tax and perhaps Obamacare altogether shall be carried out away with by 2018.

Even when that occurs, don’t count on a deal to occur earlier than the present contract expires on July 1st.

Principally by coverage, the ILWU won’t resolve a contract earlier than the present one expires. They achieve leverage by ensuring negotiations transcend contracts and deadlines. How do you assume they handle to get that unimaginable well being care deal together with common wages of $137,253 for basic longshoremen; $154,842 for marine clerks; and $213,120 for strolling bosses or foremen?[3]

Sure, the ILWU make superb cash with glorious advantages. However as we evidenced by the ILWU Native 63 Workplace Clerical Unit (OCU) in December of 2012, they gained’t hesitate to strike.

After all, it solely takes remembering again a pair contracts in the past to 2002 to know an employer lockout just isn’t out of the query both.

PMA President Jim McKenna is making an attempt to guarantee everybody that this 12 months’s negotiations shall be profitable with none work stoppages, predicting settlement to be reached by mid to late July.

No matter occurs, right here at Common Cargo Administration, we’re at all times ready to make your imports and exports ship as easily as potential regardless of worldwide transport stability points going through the trade.

It helps having been a freight forwarder for practically 30 years.


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