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Port Workers May Strike Over Automation as Labor Dispute Escalates

Port Workers May Strike Over Automation as Labor Dispute Escalates

The prospect of a strike by more than 47,000 port workers on the East and Gulf Coasts looms large as the International Longshoremen’s Association (ILA) raises alarms about automation encroaching on jobs.

The union, which represents workers at key ports including New Jersey, Virginia, Georgia, and Texas, broke off contract talks with management in June, citing concerns that automation could lead to significant job losses.

At the heart of the dispute is a gate at a small port in Mobile, Alabama, where technology is used to check and allow trucks through without the involvement of union workers.

The ILA contends this use of automation violates its labor contract and poses a threat to the livelihoods of its members.

Harold J. Daggett, the union’s president and chief negotiator in talks with the United States Maritime Alliance, said:

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“We will never allow automation to come into our union and try to put us out of work as long as I’m alive."

Automation: A Growing Threat to Jobs

The Long History of Automation in Shipping

The fear of job loss due to automation is not new for dockworkers. The introduction of shipping containers in the 1960s significantly reduced the need for manual labor at ports, leading to widespread job losses.

Now, with the advent of more advanced automated technologies, including driverless vehicles and cranes that operate with minimal human intervention, port workers are once again facing the possibility of being displaced by machines.

Brian Jones, a foreman at the Port of Philadelphia, recalls how port jobs have already diminished over the years due to technological advancements.

He said:

“You don’t have to pay pensions to robots."

Despite being 73, Jones continues to work at the port because he enjoys the job and values the income it provides.

The United States has been slower to automate port operations compared to countries like China, the Netherlands, and Singapore. However, the pace of automation is picking up, particularly on the West Coast, where ports have begun to adopt more advanced technologies.

For the ILA, this trend represents a direct threat to one of the few blue-collar jobs in America that can still pay over $100,000 a year.

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The Case for Modernization

Port operators argue that automation is necessary to ensure the efficient flow of cargo, especially as global trade volumes continue to grow.

Stephen Edwards, the chief executive of the Port of Virginia, highlighted the benefits of automated technology during the pandemic, when many U.S. ports struggled to process a surge in container shipments.

Edwards said:

“The semi-automated operations proved themselves all the way through the pandemic.”

However, the ILA has been adamant in its opposition to full automation, which it argues would erode job security for its members. The union’s expiring contract allows for “semi-automated” machinery but bars equipment that operates without human interaction.

The gate at Mobile, operated by APM Terminals, a division of Maersk, has been in operation since 2008 and uses a combination of digital scans and manual checks by ILA members.

The Uncertain Future of Labor Relations at U.S. Ports

Potential Economic Impact of a Strike

The threat of a strike has already caused some companies to divert shipments to the West Coast, raising concerns about significant delays and higher shipping costs. With three-fifths of container shipments passing through the East and Gulf Coasts, any disruption could have a severe impact on the supply chain.

As the contract expiration date of September 30 approaches, the lack of progress in negotiations is causing anxiety among businesses that rely on the ports.

Mia Ginter, a director overseeing ocean exports at logistics company C.H. Robinson, expressed concern that the two sides remain far apart.

He said:

“I think the best chance of avoiding a strike is the government stepping in and getting involved in this one."

The Biden administration has encouraged both parties to negotiate in good faith but has not yet considered invoking the Taft-Hartley Act, which could force management and union leaders to reach an agreement and avoid a strike.

An official from the administration stated that the government is not currently planning to intervene.

A Possible Path Forward

While the threat of automation remains a key sticking point, both the ILA and the United States Maritime Alliance have expressed a desire to avoid a strike.

The management group has offered to carry over the existing contract’s language on technology into the new agreement, though union leaders have not yet responded to this proposal.

As the deadline for a new contract approaches, the potential for disruption at the nation’s ports underscores the broader challenges facing the labor market in an era of rapid technological change.

For the ILA, the fight against automation is not just about preserving jobs, but about ensuring that workers have a say in the future of their industry.

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