Dockworkers union’s automation demands could undermine US competitiveness

worker strike by Unionized longshoremen Negotiations at the Eastern and Gulf ports began on Tuesday, with unions and port employers deadlocked over a new contract, with the use of automation and technology at the ports a sticking point in negotiations.

The International Longshoremen's Association (ILA) and its approximately 45,000 workers are seeking a 77% pay increase in the new contract, along with the cancellation of a port automation project that could cost them jobs. In a statement on Tuesday, the ILA said: “We are firmly opposed to any form of automation, full or partial, that replaces jobs or traditional roles. We will not accept that our members' jobs and livelihoods will be lost to automation.” said.

The United States Maritime Alliance (USMX), which represents port employers in negotiations, said in a statement on Monday that its proposal would provide a 50% pay increase, plus improved retirement and health benefits, and would also “improve current changes regarding automation and We will maintain the wording.” -automation. “

Eric Hoplin, CEO of the National Association of Wholesalers and Distributors (NAW), spoke Tuesday on FOX Business' “Morning with Maria” about the union's Demand for automation It's “unrealistic”. “We are already 30 years behind the curve,” he said, noting that major ports around the world, including Shanghai in China, Rotterdam in the Netherlands and Singapore, have introduced automated cranes and port vehicles.

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Douglas Kent, vice president of corporate and strategic alliances at the Society for Supply Chain Management (ASCM), said in an interview with FOX Business. port infrastructure The United States must also remain competitive on the world stage. ”

“If you look at what is happening in the more advanced ports in Europe, the Middle East, the United Arab Emirates and Singapore, you are seeing investments in infrastructure to take advantage of increased levels of efficiency and effectiveness. It's a technology that can be integrated to enhance the relationship and keep the flow going.”

“That particular issue is a big one, because of course you're protecting the workers because you're making the work more manual, but at the same time you're integrating technology and you have to pay for it. The cost of doing those works is also increasing because “it's more for people on the coast,'' Kent said.

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The Port of Newark and other ports on the Eastern and Gulf Coasts have been affected by the longshoremen's strike. (Photo credit: Selcuk Acar/Anadolu, Getty Images / Getty Images)

“The big question it raises is how sustainable that situation is. So again, this is a multi-year deal,” he said. “Are we really going to commit to not including technology and automation as part of the future state equation? It would be foolish to do so. So perhaps there needs to be some give and take when it comes to automation.” “I think it will have less impact.” amount of labor That's what you need to do your job. ”

“I think what they should be talking about is what has changed in the nature of the role. What we're doing is, for example, intellectual work rather than manual work, but it's not necessarily about leveraging the workforce. It's not about reducing, it's about new skill sets, new capabilities, new capabilities, and it allows for some scalability in capacity management,'' Kent explained.

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The ILA union says it will continue striking as long as necessary to secure what it considers a fair contract. (Photo credit: GIORGIO VIERA/AFP via Getty Images/Getty Images)

“From a long-term perspective, automation is a good thing,” Alexander Field, an economics professor at Santa Clara University's Leavey School of Business, told FOX Business. Improved productivityAnd ultimately, productivity determines our standard of living. ”

“If someone loses their job because of automation, that's not much consolation. So the question is, can we deal with it through retrenchment or can we deal with it through compensation? From the perspective of trade union demands. And that's a real dilemma,” Field said.

“Not embracing technology is unfortunately very short-sighted, because technology is one of the sources of competitive advantage,” Ricardo Ernst, a global business professor at Georgetown University's McDonough School of Management, told FOX Business. If we don't do it, someone else will, trust me.” If Place does that, they will be more competitive than us. ”

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“What we need to discuss is what alternatives do we find for them? What are the options, do we retrain them? It's much bigger than just saying stop automation. That's a problem,” Ernst said. “Automation is inevitable.”