Dockworkers in the United States Engage in a Stoppage Protesting Automation and Compensation
The labor union representing 47,000 workers responsible for moving goods from ships to shore along the eastern U.S. coast is currently on strike for the first time since 1977. The International Longshoremen's Association (ILA) members, who work at 36 ports from Maine to Texas, are voicing their concerns over better wages and job security in an era of increasing automation.
The duration of this work stoppage could have significant impacts on America's supply chain. While stockpiles preceding the Christmas season offer some respite, the ongoing strike may result in higher inflation and scarcity of goods as supply chains eventually falter.
ILA President Harold Daggett emphasized that the strike would intensify wage pressures on various industries, potentially causing layoffs in automobile sales and the closure of shopping malls if imports from overseas diminish. He highlighted the pandemic-induced profits of shipping companies as a reason for improved worker compensation.
More are on the way. The equipment to automate a port is expensive to set up and it does still require workers, but far fewer than are required to unload goods the old-fashioned way.
The U.S. Maritime Alliance, representing ports and significant shipping companies, offered enhancements to retirement and healthcare plans, a 50% wage increase over six years, and the retention of the old automation-limiting contract language in negotiations. However, the ILA has asked for a 77% wage hike and a total ban on automation at ports.
Many North American ports now employ automated technologies to handle tasks like unloading ships and sorting shipping containers. Expensive to implement but requiring fewer workers compared to traditional methods, automation is an attractive option for shipping companies, sparking concerns regarding job loss and underemployment among dockworkers.
told the New York Times in September. Dockworkers on the West Coast struck a deal with the Maritime Alliance last year. They
In the face of automation, the dockworkers on the West Coast managed to negotiate a pay increase without resorting to a strike. The implementation of automation occurred without any significant impact on their employment, possibly serving as a precedent for future negotiations in the eastern U.S. ports.
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secured a pay raise without having to strike but did not stop the rollout of automation.
- The ILA is pushing for a complete ban on automation at ports, as they negotiate for a 77% wage hike, citing concerns over job security and underemployment due to technological advancements in the tech-driven future of technology.
- The U.S. Maritime Alliance proposed a 50% wage increase over six years and the retention of existing automation contract language, whereas longshoremen are requesting better compensation and limiting the use of automation in mobile_pos2, highlighting the impact of automation on their employment.
- In the past, automation has led to concerns among workers in the tech industry, as seen with the implementation of mobile Point Of Sale (mPOS) systems, which while expensive to set up, can significantly reduce the workforce needed, like the longshoremen working in ports.
- The West Coast dockworkers managed to secure a pay raise without a strike in the past, showing that it's possible to negotiate terms favorable for longshoremen while embracing the future of automation in technology.