On Tuesday (January 7), contract negotiations for 45,000 dockworkers along the East Coast of the United States and Gulf of Mexico are set to resume. The outcome of this labor dispute will determine the pace of automation from ports in Maine to Texas, where these ports handle over half of the maritime import cargo in the United States.
The International Longshoremen’s Association (ILA) is seeking to revoke concessions made in the past regarding automation, particularly the use of semi-automated cranes to stack containers on the docks. They believe that this poses a threat to employment.
However, the employer group United States Maritime Alliance (USMX) argues that these rail-mounted gantry cranes are key to maintaining competitiveness, especially as automation has been leading the way in ports, particularly in China.
If an agreement is not reached by January 15, port workers may go on strike a few days before the presidential inauguration of Donald Trump on January 20.
In recent weeks, both the union and employers have issued strong statements. The union claims that nearly twenty years ago, port employers convinced early leaders of the ILA that using semi-automated cranes at the Norfolk International Terminals would eventually create thousands of new job opportunities.
These cranes replaced manually operated equipment like dedicated forklifts. Subsequently, this type of crane has been introduced in other ports in the United States.
Compared to traditional equipment, these cranes can handle larger container stacks, increasing port throughput and can operate all night, arranging containers for pickup the next day with minimal human intervention. However, the task of loading containers onto trucks for transport still requires manual manipulation by operators.
ILA’s Executive Vice President, Dennis Daggett, stated in December last year that, “What seemed like a victory project for a port has turned into a model for automation that could take away many job positions at almost all other docks along the East Coast and Gulf of Mexico.”
The union’s president, Harold Daggett, has called for “absolutely stringent” contract terms prohibiting the adoption of automation or semi-automation at port docks.
Employers recently clashed with the union over the installation of automated truck entrance gates, citing the need for faster and more efficient ports to support national economic growth.
In December of last year, the United States Maritime Alliance stated that, “Modern technology has proven to significantly increase port throughputs, not only protecting employment but also creating new job opportunities as our business expands.”
The organization includes terminal operators such as the American subsidiaries of major operators like APM under Denmark’s Maersk, China Ocean Shipping Company (COSCO), and Mediterranean Shipping Company (MSC) under the Swiss Mediterranean Shipping Group.
In October of last year, a three-day strike by the ILA caused transportation prices to soar and goods to pile up in 36 affected ports. The ILA and the USMX reached a temporary agreement on October 3, extending the existing contract until January 15, 2025.
To end last year’s strike, the United States Maritime Alliance agreed to raise wages by 62% over the next six years, emphasizing that wage increases are contingent on the final resolution of all unresolved issues, including automation.
The Biden administration supported last year’s strike, pressuring employers to raise wages to ensure an agreement. They pointed out that the shipping industry has been enjoying hefty profits since the COVID-19 pandemic.
(Note: This article referenced reports from Reuters)