x
Analytics Economy USA

Port Strike Looms as Longshoremen’s Union Demands Total Ban on Automation

Port Strike Looms as Longshoremen’s Union Demands Total Ban on Automation
  • PublishedSeptember 30, 2024

As thousands of dockworkers prepare for a potential strike, a key point of contention — the demand for a total ban on automation at ports — has sparked debate.

The International Longshoremen’s Association (ILA), representing 85,000 workers, announced that it, along with tens of thousands of maritime workers globally, will strike at all Atlantic and Gulf Coast ports, stretching from Maine to Texas, if no deal is reached by the end of Monday.

The union is demanding higher wages and a complete prohibition of automation in tasks such as operating cranes, gates, and moving containers during the loading and unloading process. However, some business leaders are questioning the practicality of such a ban.

Bill Gurley of Benchmark Capital criticized the union’s stance, urging the federal government to intervene.

“Outlawing the effective use of technology will unquestionably doom our nation… We will become globally uncompetitive,” Gurley said on social media.

The ILA and the United States Maritime Alliance (USMX), which represents employers at 36 seaports that could be affected, remain at odds over wages and automation. The union argues that while ocean carriers have seen profits soar, longshoremen’s wages have stagnated.

The White House has become involved, with officials from the Labor and Transportation Departments urging both sides to continue negotiations in good faith. A strike could have significant economic consequences, with an analysis by J.P. Morgan estimating potential losses to the US economy of up to $5 billion per day.

Written By
Joe Yans