As global food prices continue to skyrocket [1], regulations that entrench union special privileges are delaying critical food shipments from reaching their intended destinations. According to the Center for Global Development [2] and The Los Angeles Times [3], union-imposed labor requirements have slowed food shipments because aid agencies are forced to rely on U.S.-flagged ships for transportation:
“ . . . US policy compounds the problem by requiring that food aid must be purchased and packaged in the United States and shipped mainly on US-flagged ships. Thus, a good chunk of the US food aid budget gets diverted to higher distribution and transportation costs, which are also going up as a result of oil price hikes and rising freight costs.”
The Center for Global Development also estimates [4]that these regulations increase the cost of foreign assistance by up to 30%, eroding the benefits of aid through massive overhead costs. Union officials support this wasteful policy because it forces ports to rely on a heavily unionized workforce that generates millions of dollars in dues payments each year.
This isn’t a new problem, either. Union-boss-inspired maritime regulations have plagued [5] the delivery of foreign aid consignments for over a decade. With food prices soaring throughout the Third World, however, now is an ideal time to jettison these obstructionist compulsory unionism privileges.
Links:
[1] http://africa.reuters.com/top/news/usnBAN849863.html
[2] http://blogs.cgdev.org/globaldevelopment/aid_effectiveness/food_aid/
[3] http://www.latimes.com/news/opinion/editorials/la-ed-food17apr17,0,2640146.story
[4] http://blogs.cgdev.org/globaldevelopment/2007/08/post_3.php
[5] http://scholar.lib.vt.edu/VA-news/VA-Pilot/issues/1995/vp950327/03250241.htm