June 22, 2016
Harry Bridges Labor Center report explores effects of job outsourcing at Portland International Airport
Portland International Airport in 2015. Recent research published by the Harry Bridges Center for Labor Studies comments on the economic effects of job outsourcing at the airport, called PDX for short.Frank Fujimoto / flickr
The outsourcing of workers at Portland International Airport has increased in recent years while those workers serve ever-more passengers and their wages remain relatively low, according to a recent report from the University of Washington’s Harry Bridges Center for Labor Studies.
The report, titled “Poverty Doesn’t Fly,” was compiled by Garrett Strain, who recently completed the Evans School of Public Policy & Governance‘s Master of Public Administration program, and was released by the center.
His study of employment at the Portland airport found that the share of contracted, or outsourced workers there increased from 19 percent to 26 percent from 2001 to 2014. Those workers are serving more passengers, too; the airport had a ratio of one to 1,103 passengers in 2001 that rose to 1,931 in 2014. The annual turnover among outsourced employees averaged 64 percent, the report found.
The state of Oregon passed legislation increasing the state’s minimum wage to $9.75 starting this July. Still, the report says, even after this increase the Portland airport will have the lowest minimum wage when compared with other large-hub airports on the West Coast such as Seattle-Tacoma, San Francisco, Los Angeles and San Diego.
A wage analysis in the report concludes that by paying outsourced workers at least $15 an hour, the Port of Portland could create 81 jobs and add about $7 million to the regional economy.
Strain, the report’s author, said that by allowing low-wage jobs at the airport, the Port of Portland and airlines are limiting the airport’s ability to positively impact the regional economy.
Portland International Airport, called PDX for short, has been named in recent polls by Travel + Leisure magazine as among the best in the nation for location, access, check-in, security and design.
“Any serious discussion of the airport’s impact on economic development needs to include wages for contracted workers,” said Michael McCann, center director and UW professor of political science. “While it may get top marks for customer satisfaction, PDX has fallen behind other major West Coast airports when it comes to wages and job quality for airport workers.”
Low wages and a lack of health and retirement benefits “have become common at many of the country’s wealthiest airports,” the report states.
“These trends have had a negative impact on the livelihoods of air transportation workers — such as baggage handlers, cabin cleaners and others who provide vital services to ensure the smooth passage of travelers in and out of U.S. airports.”
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To learn more, contact the center at 206-543-7946 or hbcls@u.washington.edu; McCann at mwmccann@uw.edu or Strain at garretts@uw.edu. This was based on a news release issued by the center.
Tag(s): Garrett Strain • Harry Bridges Center for Labor Studies • Michael McCann
