While mainstream media has largely focused on the wage issue of the strike called by the International Longshoremen's Association (ILA) on Tuesday, the real issue is automation, which dates back more than 100 years.
“Automation is a high priority issue that we believe we will continue to fight for as long as we exist,” said ILA Executive Vice President Dennis Daggett.
Daggett added: “We're seeing them[the United States Maritime Alliance (USMX), which represents major cargo and port operators]deploying automation in certain ports, and we're seeing that cancer here. “We're not going to allow them to come to the East Coast,” he added. ”
Daggett may be referring to a slight change in operations at the Port of Mobile, Alabama. The port uses an automated gate system that handles trucks entering and exiting the terminal without the use of ILA's workforce. He claims that the slight improvements violate the existing labor contract with USMX.
This is an issue that USMX is not actively addressing. Current contracts already constrain port operators from introducing improvements to move goods faster, safer and more efficiently. These improvements are also likely to result in the dismissal of some of the estimated 25,000 workers currently on strike.
the problem remains the same
Automation is an issue that has divided management and workers for nearly two centuries. The striking ILA workers held placards that read, “Machines do not feed families.” Please support ILA workers. ” The Luddites were textile workers in Nottingham, England who violently protested the introduction of automated machinery in the early 19th century. If the ILA Luddites have their way, America will become like 19th century Britain.
That may be an exaggeration, but consider what economists predict if the strike lasts more than a few weeks. The work stoppage could cost the economy more than $4 billion each day, including the huge ripple effects of halting half of U.S. imports. Moving supply lines to southern and western ports would also reduce traffic, increase costs and delay the delivery of critical parts needed to keep the economy running.
The benefits of automation are well known. More than 100 years ago, Henry Ford introduced the assembly line, average wages rose to $5 a day, and costs fell so that the average American worker could afford to buy the very cars they were building. Automation has dramatically improved living standards since it became affordable. . These benefits include labor savings, reduced waste, energy and material cost savings, and significantly improved quality. These are delivered to the final end user as a more convenient and lower cost product.
poor performance
Daggett and the ILA Luddites stand astride progress. Estimates suggest that half of all current jobs could be fully automated within 10 years. However, due to current restrictions in the labor contract between ILA and USMX, ports that are under strike by workers rank near the bottom of global port efficiency ratings.
According to the World Bank's 2022 Port Performance Index, North America's average port ranking is lower than ports in East Asia, half as efficient as ports in Central America, South America and the Caribbean, and half as efficient as ports in sub-Saharan Africa. barely exceeds that.
“This is a huge shift in economics,” said Rachel Gressler, an economist at the Center for Economic Policy Innovation.
(W) When ports move containers more quickly, they can move more containers, increasing revenue to support higher wages and new jobs. And as goods move more quickly through the supply chain, that translates into lower costs for consumers.
The strike could end if Joe Biden wishes to trigger the 80-day cooling off period allowed by the Taft-Hartley Act. But that's not the case. For political reasons, he does not exercise that authority. It's “anti-union” and Vice President Kamala Harris desperately needs every union vote she can muster to stop President Trump's momentum heading into November.
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