Ok, so we now have what the media is calling the "Container Cliff". This actually could turn into a big thing for our economy, especially combined with the "Fiscal Cliff". Please, enough with the Cliff's!
First of all, the reason for this impending strike. (This could actually shut down 14 ports between Boston and Houston and would affect 15,000 workers.) But this whole threat of a strike is over.... Container Royalties that began in the 1960's. These are royalties that the unions demanded from companies after larger containers were starting to be utilized and modernization was allowing companies to streamline their processes, such as automatic weighing of containers. Because of course it would be ridiculous for the union to just accept reality that due to modernization, there would be less need for their workers. No - the companies must pay for that! And for the workers currently receiving them, the companies and port authorities aren't threatening to take them away, they just want to cap them. Some of the recipients of these royalties weren't even born when they were conceived!
And it's not a small sum these companies are paying the union employees. The average pay for a ILA worker is $15,500 per year. ON AVERAGE. In Savannah, GA, it is more like $36,000 per worker.
So in light of the fact that we know this
New supply chain practices and Just In Time principles have changed the way that retailers are re-stocking their inventory. The average grocery store keeps on hand a 3 day supply of food. Keep in mind that retailers are also needing to re-stock from the holidays.
So, this would be a good time to take inventory of what you and your family have on hand, and think in terms of getting and being prepared for this kind of a circumstance. It doesn't need to be a strike, it could be a natural disaster, or it could be a local disturbance in the supply chain.
As the Boy Scout motto says: Prepared. For Life.
0 comments:
Post a Comment