In two weeks, the labor contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) will expire. This could lead to a strike by over 70,000 dockworkers across 36 ports along the East and Gulf Coasts, from Maine to Houston, potentially halting a key part of the U.S. supply chain.
Aside from demanding higher wages, the ILA’s primary grievance concerns USMX’s investment in automation.
The alliance, which includes employers, carriers, and port operators at these ports, has indicated its intention to “retain its existing technology language.” This framework aims to modernize and enhance efficiency while safeguarding the jobs and work hours of ILA members. However, the ILA postponed negotiations earlier this summer due to the use of automated gates at a port in Alabama.
In June, the ILA revealed that APM Terminals and Maersk Line had been using an automated gate system at the Port of Mobile to process trucks without ILA labor. However, sources reported that the system has been in place since 2008, spanning more than two previous contract periods. The union has also raised concerns about similar technologies being used at other USMX-operated ports.
The 2018 ILA-USMX master contract specifies that no fully automated terminals or equipment—defined as machinery operating without any human interaction—can be introduced during the contract’s term.
According to The New York Times, the autogate in use at Mobile is not fully automated, as ILA members manually verify its work. This semi-automated technology can be implemented under the current contract, provided it is approved by the ILA’s New Technology Committee.
The ILA's opposition to automation stems from concerns about job losses. Historically, the union has resisted automation, dating back to the introduction of containerization, which greatly reduced the need for manual labor.
Given this history, the ILA views automation as a direct threat to its members' livelihoods, opposing technological advancements that bypass union labor and potentially reduce jobs.
Advocates of automation argue it could create new roles for ILA workers, such as maintaining and repairing automated equipment. Additionally, as automation boosts port productivity, more workers could be needed to handle increased volumes.
While USMX has not provided the assurances the ILA seeks regarding job security, the union has seen a 15% increase in membership since 2020. Similarly, West Coast ports, which have also invested in automation, have seen a 12% rise in union workers over the same period.
A recent Government Accountability Office (GAO) report, initiated under the Ocean Shipping Reform Act of 2022, highlighted several benefits of automation, including improved worker safety by reducing direct human-machine interaction and enhanced efficiency through denser container stacking.
However, the report found mixed results regarding automation’s impact on port performance and the workforce. Some stakeholders noted slower container movements with automated equipment, while others emphasized the creation of higher-skilled jobs and better working conditions.
The Port of Mobile and its autogate system were also part of this study.
The GAO report also noted that U.S. port operators face challenges balancing labor concerns, costs, and operational priorities when deciding on further automation. As a result, U.S. ports lag behind their international counterparts in adopting new technology.
While the top 10 U.S. container ports, including two with ILA representation, have incorporated some automation, such as automated gate systems and cargo-handling equipment, this level of integration is less advanced compared to foreign ports.
International ports tend to adopt automation more aggressively, driven by higher container volumes and different labor markets. While U.S. ports can access grant programs that support automation, these funds are not specifically allocated for port modernization.
As a result, U.S. ports must navigate several complex factors in deciding how far to push automation, contributing to a slower pace of adoption.
In an interview with FreightWaves, industry expert Benjamin Gordon, managing partner of Cambridge Capital and BGSA, suggested that the ILA's resistance to automation may result in missed opportunities for progress.
“Most people end up fighting yesterday’s battles. … By resisting automation, the ILA may believe they are protecting union jobs for dockworkers. But are they really just undermining American competitiveness, boosting costs, and contributing to inflation?” Gordon asked.
He pointed out that only one American port, Los Angeles, ranks in the top 20 globally for container volume, sitting at No. 17, while China dominates the top 16 with 10 ports.
“How many of those ports do you think are restricted from investing in productivity-boosting technology?” Gordon added. He suggested a better approach would be for the ILA to collaborate with ports, ocean carriers, trucking firms, and shippers to develop solutions that embrace technological advancements, enhance competitiveness, and benefit all parties involved.
Source: www.freightwaves.com
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