Derec
Contributor
So the longshoremen union is striking on the East Coast.
East and Gulf coast ports strike, with ILA longshoremen walking off job from New England to Texas, stranding billions in trade
Other than the massive pay increase they are demanding, the major sticking points is that the union does not want the ports to be automated like major ports around the world have been for years. Ports like Rotterdam and Shanghai. That puts US on the back foot compared to other developed nations.
This is an article from 2015.
Why Aren’t America’s Shipping Ports Automated?
That means that port operations are artificially inefficient because of the powerful union. Why isn't Big Labor subject to anti-trust laws?
I posted this in the October Surprise thread as well, but the "threat" of port automation was a plot point in the second season of The Wire which ran in 2003.
US still hasn't learned from Rotterdam. Nor from Hamsterdam, for that matter.
East and Gulf coast ports strike, with ILA longshoremen walking off job from New England to Texas, stranding billions in trade
CNBC said:Billions in trade came to a screeching halt at U.S. East Coast and Gulf Coast ports after members of the International Longshoremen’s Association, or ILA, began walking off the job after 12:01 a.m. ET on Tuesday.
The ILA is North America’s largest longshoremen’s union, with roughly 50,000 of its 85,000 members making good on the threat to strike at 14 major ports subject to a just-expired master contract with the United States Maritime Alliance, or USMX, and picketing workers beginning to appear at ports. The union and port ownership group failed to reach agreement by midnight on a new contract in a protracted battle over wage increases and use of automation.
In a last-ditch effort on Monday to avert a strike that will cause significant harm to the U.S. economy if it is lengthy — at least hundreds of millions of dollars a day at the largest ports like New York/New Jersey — the USMX offered a nearly 50% wage hike over six years, but that was rejected by the ILA, according to a source close to the negotiations, who was granted anonymity to speak about the private negotiations. The port ownership group said it hoped the offer would lead to a resumption of collective bargaining.
In a statement on Tuesday, ILA President Harold Daggett said the union is “now demanding $5 an hour increase in wages for each of the six years of a new ILA-USMX Master Contract. Plus, 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.”
Other than the massive pay increase they are demanding, the major sticking points is that the union does not want the ports to be automated like major ports around the world have been for years. Ports like Rotterdam and Shanghai. That puts US on the back foot compared to other developed nations.
This is an article from 2015.
Why Aren’t America’s Shipping Ports Automated?
Savannah CEO said:A second reason for the delay in adopting modern automation is the effect on union jobs. Some have estimated that if the Port of Oakland were to implement a modern level of automation, 40-50% of the jobs would be eliminated.
All ports on the West Coast of the United States are organized under a single union, the International Longshore and Warehouse Union (ILWU), which gives them a tremendously powerful collective bargaining position. A strike doesn’t just affect one port, but every single port on the the West Coast.
This union power was used to oppose the introduction of containers in the 1960s and, later, computerized systems for tracking cargo. In each case, however, the union eventually conceded the introduction of these technologies in exchange for higher wages for existing workers and buyouts for displaced ones.
As with previous disruptive technology ILWU will need to be compensated for any reduction in jobs. Today, the average member of the union in Oakland makes $147,000 per year in wages, with benefits equal to another $82,000 per year. Needless to say, providing buyouts to force retirement on these union workers, many of whom have dedicated their entire working lives to port operations, is not an appetizing prospect for the terminal operators.
That means that port operations are artificially inefficient because of the powerful union. Why isn't Big Labor subject to anti-trust laws?
I posted this in the October Surprise thread as well, but the "threat" of port automation was a plot point in the second season of The Wire which ran in 2003.
US still hasn't learned from Rotterdam. Nor from Hamsterdam, for that matter.