Apparently a lot.
US Dock workers struck work three days ago demanding a 77% increase in their wages.
The companies offered them 50% at the maximum.
Then President Joe Biden stepped in and threw his weight behind the dock workers. In a statement he said that port companies had made massive profits over the last several years, especially during the post pandemic period
“They made incredible profits, over 800% profit since the pandemic, and the owners are making tens of millions of dollars from this,” Biden told reporters on Wednesday. “It’s time for them to sit at the table and get this strike done.”
But the companies were not willing to sit down at the table.
It was only when the strike entered its third day that good counsel prevailed. By that time, there was a huge backlog of cargo both in the port and on the high seas. Ships were waiting to discharge their cargo, burning precious fuel at high seas.
Finally, both parties agreed to a 62% increase over the next six years, aggregating a 10% increase every year.
With this collective bargaining, the wages of port workers will go from 39 USD per hour to 63 USD per hour.
What are the lessons for everyone from this episode?
One is that collective bargaining works.
Second is if the government supports collective bargaining, then even the biggest of corporations have to bend down.
Third is that it takes guts and gumption to force a corporation into giving in.
Will this work in India?
Not likely as the current government led by Narendra Modi is a typical ‘Suit-Boot Government’ that is more interested in protecting the interests of the rich guys than the poor sods who do manual labor. They have been getting funding from these rich guys and that has helped them stay in power and grab power by means fair or foul.
Yet, it is an important lesson. The big question is, will any leader of any trade union have the guts and gumption to take on this repressive government? Highly unlikely given that every businessman lives in fear of the government and its agencies.
