Sept.

Issue
964

THE WESTERN CANADIAN LUMBER WORKER

One Union's plan.

for automation

The International Long-
shoremen’s and Warehouse-
men’s Union claims to hold a
contract in the American
Pacific ports which gives its
members a greater degree of
security than in any other
union contract. The Union
negotiated an agreement on
men and machines which runs
until July 1, 1966, and which
is not subject to review. The
basic longshore and clerks’
agreements were extended for
the same period, but may be
opened periodically on all
matters except mechanization
and pensions.

In an introductory note for
an attractive brochure pub-

‘lished jointly by the Union

and the Pacific Maritime As-
sociation, President Harry
Bridges states:

“The rub is that as ma-
chines become more effi-
cient they become cheaper
than people. Not until we
change our own thinking,
not until we put people
first, or much higher, in our
scale of values, and appraise
the performance of our
society by this measure
more than any other, can
we guarantee that modern
technology will have been
a boon to the American na-
tion and not a blight.

“One thing about mach-
ines: they lighten labor,
and they can and must be
used to shorten hours of
work, especially hours of
heavy physical labor. So
must unions. is union,
the ILWU, surely will.”

The M&M agreement has
many attractive features for
workers who are plagued by
the threat of displacement by
automation. The Pacific Mari-
time Association won a sub-
stantial degree of freedom
for productivity improve-
ments, but the longshoremen
now employed enjoy an un-
usual degree of security
against layoffs and retirement.

The following is an explan-
ation of the way the scheme
works as described jointly by
the employers and the Union
for the information of inter-
ested unionists.

The PMA agreed to con-
tribute into a fund $5 million
annually for 54% years, begin-
ning January 1, 1961; but the
employers reserved to them-
selves the right to determine

how to raise the money. The .

trust fund is for the exclusive
use of those men who had
full registration at the time
the agreement was signed.
Three million dollars each
year is considered to be, in
the union’s terminology, the
men’s “share of the machine;”
this portion of the Fund is
intended for early retirement,
cash vesting and death bene-
fit features.

The remaining two million
dollars per year represent
what the men are to receive
for selling their property
rights in certain of the work-
ing rules. It is recognized that
eleven million dollars is the
total price ($2 million for 54%
years) and that by 1966 the

¢

transaction will be completed.
This portion of the Fund will,
if necessary, be used for the
wage guarantee. Men who are
registered in the work force
from now on will not be en-
titled to any of this part of
the Fund because they were
not party to the bargain on
the working rules.

GUARANTEES AGAINST
LAYOFFS

Maximum possible security
for the present fully register-
ed work force is provided in
the following way:

(1) There is a flat guaran-
tee against layoffs. The par-
ties prepared for this first by
freezing registration in 1958

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(2) There are two cushions
to take up the shock as work
opportunity declines from ris-
ing productivity. First, normal
attrition is high because the
average age is well over 45
years. Deaths and normal re-
tirements remove about four
percent of the work force each
year. Secondly, the parties
have agreed to reduce the
amount of work performed
by other than regular long-
shoremen.

(3) The Agreement pro-
vides for voluntary early re-
tirement, at age 62, with a
monthly benefit of $220. At
age 65, when Social Security
is payable, the industry pen-
sion drops back to $115. This
provision induces the retire-
ment of men who would have
otherwise continued working.
Their withdrawal leaves more
work for the younger men.
This is seniority in reverse.

If a man chooses not to re-
tire early, but continues to
work until normal retirement,

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he receives a lump sum of
$7,920 — the equivalent of
$220 per month for the 36
months from age 62 to age 65.

(4) If a sharp decline in
work opportunity makes it
necessary, the parties may in-
voke compulsory early retire-
ment. In this event, the men
will receive $320 a month; the
additional $100 is intended to
make early retirement more
palatable.

(5) If, despite these steps,
average weekly earnings fall
below the equivalent of 35
straight-time hours as a result
of mechanization and modern-
ization, the weekly guarantee
of this amount ($111.65 per
week as of July 1, 1963) will

become operative.

(6) A disabled worker with
25 years of service receives
the M & M benefit of $7,920
in addition to a full pension;
disabled workers with less
than 25 years’ service receive
pro rata pensions and M & M
benefits.

If the agreement works out
as planned, funds for the wage
guarantee will no longer be
required after 1966. It is an-
ticipated that once the rule
changes have been completed
the rate at which mechaniza-
tion will increase productivity
— and, thereby, reduce work
opportunity — will probably
not be greater than the rate
at which men will leave the
industry because of normal
attrition. Thus, by controlling
the manpower intake the par-
ties should be able to prevent
average work opportunity
from dropping below a rea-
sonable level.

At the same time the em-
ployers can proceed to put in
any new machine or method
provided only that they can
establish, through the griev-
ance machinery, that the me-
thod is safe, that there is no
speedup of the individual, and
that the work is not onerous.
These safeguards are written
into the agreement. Defining
speedup” and “onerous” has
presented some problems but
interpretations are beginning
to come out of the labor rela-
tions committees and arbitra-
tion awards. Subject to these
safeguards, any existing
working rule which can be
shown to prevent or to limit

efficient operations must
changed. sag