U.S. port, union talks break down again over automation, with two months to go before potential strike

Automation continues to be the sticking point in the negotiations between the United States Maritime Alliance and the International Longshoremen’s Association to prevent the potential for a new strike that could shut down port operations from New England to Texas starting in mid-January.

Recent negotiations, the first since the end of the three-day ILA strike that shuttered ports along the East Coast and Gulf Coasts in early October, have bogged down over use of automation at ports, according to the USMX.

The group, which represents port owners in the talks with the union, released a statement on Wednesday saying while some progress had been made, there was no headway in the area of automation over the last two days of negotiations and no new date has been set to resume talks.

“While we had positive progress on a number of issues, we were unable to make significant progress on our discussions that focused on a range of technology issues Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades – making it impossible to evolve to meet the nation’s future supply chain demands.”

Since the October strike ended after a tentative settlement on wage hikes, the parties agreed to work towards a lasting agreement by a January 15 deadline, or face the prospect of another ILA strike.

The use of cranes with semi-automated capabilities is the stumbling block, according to sources close to the negotiations who were granted anonymity to discuss sensitive talks. Semi-automatic cranes use real-time data and positioning systems to move and identify priority containers for pickup. These cranes are operated by union workers, using a remote control in an indoor operator’s station. The union workers are not physically on the crane.

The ILA declined to comment beyond saying in a statement that it is communicating directly with union members regarding the negotiations.

It should come as no surprise that automation is a major roadblock.

ILA President Harold Daggett has never wavered in his stance on automation. After the agreement on wages was made, Daggett said, “The ILA negotiated restrictions on automation and semi-automation in the last contract. The ILA just wants to tighten the language that no automation means no automation.”

In another comment, he vowed, “We want absolute airtight language that there will be no automation or semi-automation, and we are demanding all Container Royalty monies go to the ILA.”

He also called semi-automation a “back-avenue into automation.”

Dennis Daggett, executive vice president of the ILA and Harold Daggett’s son, called automation a “cancer” in a video message to union members shared during a September meeting ahead of the strike.

“We do not believe that robotics should take over a human being’s job especially a human being that’s historically performed that job, so we’re going to continue to fight that from from now to the rest of our existence. It doesn’t matter if they pay us $100 an hour, we will not have jobs in the future,” he told union members.

In Wednesday’s statement, the USMX said it is not seeking technology that would eliminate jobs.

“What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses and workers alike. We look forward to resuming negotiations with the ILA.”

Stephen Lamar, CEO of the American Apparel and Footwear Association, said in a statement to CNBC, “We are disappointed that the International Longshoremen’s Association has walked away from negotiations for the East and Gulf Coast port contract, again. When negotiations broke down earlier this year, the ILA initiated a three-day strike in October that caused significant delays and backlogs that lasted weeks and negatively impacted American jobs and transportation networks globally.”

“It is imperative the ILA return to the negotiating table immediately so that the parties can jointly resolve outstanding issues regarding modernization so that a long term, sustainable, and fair agreement can be finalized this year,” Lamar added.

Research on the impact of automation on union jobs is mixed. A study conducted by Dr. Michael Nacht, Professor of Public Policy at the University of California, Berkeley, and a former Assistant Secretary of Defense, and Larry Henry, Founder of ContainerTrac, concluded that higher output of automation at the two semi-automated terminals at the ports of Long Beach and Los Angeles, California, actually increased jobs for the International Longshore and Warehouse Union. The report was commissioned by the Pacific Maritime Association, which manages West Coast ports and reached a deal on a new contract with the ILWU in 2023, averting a strike. But a study commissioned by the ILWU found that automation eliminated job hours and wages.

Source: CNBC