Automation: The Central Issue in New US Port Strike Agreement
The International Longshoremen’s Association (ILA), the union that represents 85,000 dock and maritime workers, has declared, "No automation means no automation." On October 3, ILA officials reached a tentative wage agreement with the United States Maritime Alliance (USMX). This agreement suspended the three-day job action and extended the existing Master Contract until January 15, providing both sides with around 100 days to negotiate a new agreement. The primary issue of contention is automation.
Automation: The Union's Main Concern
While the ILA has confirmed that the USMX has agreed to raise pay for thousands of port workers, the focus of their discussions has now shifted to the use of technology to complete tasks with less human intervention. The union is seeking to prevent the automation of container-moving trucks, cranes, and gates. Union negotiators are now pushing for more protections against the potential replacement of jobs by automation and semi-automation. This could be a significant obstacle to preventing another round of work stoppages in the new year.
Automation at Ports: A Historical Perspective
The last time the union went on strike was in 1977, when technological advancement was a major topic for officials and workers. Port work was primarily a manual process in the years leading up to the labor action nearly 50 years ago. Over time, the industry transitioned to containerized shipping, which involved the use of cranes and other equipment. This change made the container process more efficient and increased volumes.
Current State of Automation at Ports
According to a report by the Government Accountability Office (GAO) in March 2024, all 10 of the largest domestic container ports have installed some form of automation technology to handle and process cargo. This typically involves loading, unloading, or shifting heavy containers. The previous contract required the ILA’s permission for ports to install any automation. Industry experts argue that this resistance to accelerating automated and semi-automated processes at terminals has resulted in an inefficient and uncompetitive system.
Unions' Concerns Over Job Loss Due to Automation
Union leaders have been resisting automation due to concerns about job security. In June, the ILA halted talks with the USMX, claiming that the installation of an automated gate system at a Mobile, Alabama, port violated their contract. This system can process trucks entering and leaving the port using digital scans and does not require unionized labor.
Are Fears of Job Loss Justified?
Data suggests that automation will temporarily displace port workers in the shipping industry. A 2022 report by the Economic Roundtable estimated that automation eliminated 572 full-time jobs annually at these ports in 2020 and 2021. However, while automation may initially reduce jobs, it can eventually create new employment opportunities.
Training Programs for Workers
To assist with workers’ career development in the changing industry, some ports offer training programs to enhance their workers’ skills. In May 2024, the International Longshore and Warehouse Union (ILWU), representing West Coast port workers, announced a training center at the Port of Los Angeles with the Pacific Maritime Association (PMA). This facility allows ILWU members to acquire new skills by participating in programs that "re-skill" or "up-skill."
Bottom Line
The issue of automation is a contentious one, with unions fearing job loss and industry experts arguing for increased efficiency and competitiveness. As negotiations continue, it will be interesting to see how both sides navigate this complex issue. What are your thoughts on the matter? Do you believe automation is necessary for progress, or should job security take precedence? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
