The Global Logistics Chain: A 21st Century Change Agent

Rutgers University New Brunswick, New Brunswick NJ

Investigators

Abstract

SBE-0624251 William M. Rodgers Maria Boile Rutgers University New Brunswick The IT (information technology) revolution transformed the global logistics chain into one of the world's fastest growing and most strategically important industries. The transformation redefined how ports function, unions and management interact, and gave rise to a new business model for global commerce. The global logistics chain is an agent of change. With a focus on the Port of New York and New Jersey (PNY/NJ) the PIs will study how the logistics chain's rapid transformation restructured its labor markets. They will test three hypotheses: 1) Wages and working conditions throughout the product supply chain have deteriorated, 2) Public policy and organized labor play a role in influencing employer choices as to whether they take the "high" or "low" road to competitive success, and 3) Shortages in the labor market for highly-educated workers in the logistics chain have emerged, putting them in a position to demand high wages and desirable working conditions. The investigators will complete a comprehensive analysis of compensation and working conditions within the logistics chain. They will test the three hypotheses using data from the decennial censuses, the Current Population Survey, and the Current Employment Survey. The PIs will test Hypothesis I by seeing whether labor market outcomes in the logistics chain trended downward more than other industries or sectors. They will test Hypothesis II, the ability of organized labor to minimize the erosion in employment, wages and worker-provided benefits, by first sorting industries or individuals into low, medium and high union densities. They will then look to see if segments of the logistics chain in which unionization is higher, experienced a smaller downward trend in outcomes. As a confirmation of Hypotheses I and II, and a formal test of Hypothesis III, they will conduct surveys of port employees and employers, and we perform in-depth interviews with key actors in the PNY/NJ logistics chain. Broader Impacts. Although the detailed analysis focuses on PNY/NJ, because of its size and similarity to other US ports, lessons learned from the analysis will have applicability to other port labor markets and to other sectors of the economy that have been buffeted by globalization and the IT revolution. The analysis of the logistics revolution's role in driving globalization will enhance the understanding of industry associations; organized labor; public policymakers; community organizations and NGOs; and the scholarly community. A larger goal of the study is to inform the broader civic community. To do this, the PIs have established a partnership with the United Nations Association in New Jersey to convene conversations with business, labor, government and civic leaders. They will also create a project website and hold briefings, and publish peer-reviewed journal articles, an edited volume, and policy briefs.