Young Brothers testifies union contract wage and benefit increases, overtime patterns weigh on costs

Young Brothers told the Public Utilities Commission that the company’s three collectively bargained contracts are a major driver of higher labor costs included in the 2025 forecast, that a few fringe benefits tied to those contracts have not been historically budgeted, and that the company is actively tracking overtime with new management initiatives.

Director of Finance Kim Kishimoto said the company’s budget reflected wage schedules and multiyear increases negotiated in the three contracts: ILWU Local 142, ILWU Local 100 and the Inland Boatmen’s Union (IBU). She testified the union wage schedules require multi‑year percentage increases (examples cited in testimony included 10% plus signing bonuses for one local and subsequent scheduled increases of several percent on set dates) and that the company includes payroll taxes, pension trust contributions and health/welfare contributions as CBA‑driven costs in its line‑by‑line (“bottoms up”) budgeting process.

Kishimoto told the PUC that some contract provisions impose pay‑related requirements beyond straight hourly increases—minimum call‑out pay, overtime and premium rules, holiday and shift‑scheduling criteria, and minimum‑hours or minimum‑days rules that create built‑in paid time. “All of these are paid amounts of items, which is being paid based on a new higher wage rate…