One of the country's top businessmen is weighing the “issues” regarding unionists' demands as Eastern and Gulf Coast ports begin operating normally again.
“The problem with East Coast ports is they're very old and very inefficient,” O'Leary Ventures chairman and “Shark Tank” star Kevin O'Leary told Varney & Company. He spoke at Friday.
“And when you start comparing to other international ports like Singapore and other Asian ports, we can't really compete with them,” he continued. And that's very bad for productivity. ”
US longshoremen returned to work on Friday morning after reaching a tentative agreement with their employer on improved pay.
The International Longshoremen's Association (ILA), which represents 45,000 striking workers, said the union and USMX “have reached a tentative agreement on wages and will return to the bargaining table to negotiate all other terms.” We have agreed to extend the basic contract until January 15, 2025.” Unresolved issues. ”
FOX Business reported that workers accepted a 62% pay increase, effective immediately.
However, ILA's preliminary agreement statement makes no mention of protections from technology or automation.
The ILA said in a statement on Tuesday that it “firmly opposes all forms of automation, full or partial, that replace jobs and traditional business functions.” We do not accept the loss of our members' jobs and livelihoods to automation. ”
“There has been a lot of research into automation in ports domestically and internationally,” O'Leary said. “We have no choice but to automate as far as we can because there is absolutely no evidence on either the East Coast or the West Coast that automating to become more efficient and more productive has a negative impact on wages.”
“In fact, the actual pay for employees who know how to use these robotic systems will increase, and they may even become more engineer-oriented.'' Awesome,'' he added. “It helps create jobs and helps make wage increases more valuable.”
Eric Hoplin, CEO of the National Association of Wholesalers and Distributors (NAW), echoed O'Leary's assertions, saying on Tuesday's “Morning with Maria” that the union: Demands for automation are “unrealistic”.
He pointed out that major ports around the world, including Shanghai, Rotterdam in the Netherlands and Singapore, have introduced automated cranes and port vehicles, adding: “We are already 30 years behind the curve.”
The three-day port strike has heightened concerns that the U.S. supply chain will be disrupted.
A JPMorgan analysis estimates that a strike by longshoremen on the East Coast and Gulf Coast of Mexico would cost the U.S. economy between $3.8 billion and $4.5 billion per day as operations slowed.
FOX Business' Eric Revell and Bradford Betz contributed to this report.
