BUSINESS

Port Drama: Strike Ends, Automation Debate Continues

How to protect the American supply chain from future threats by organized labor…

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A potentially debilitating port strike ended after less than four days this week when dock workers with the International Longshoremen Association (ILA) agreed to a temporary deal with shipping companies. 

As a result of that agreement, 45,000 striking dockworkers at ports along the east and gulf coasts are back on the job this morning (October 4, 2024) – while a grave disruption of the American supply chain appears to have been averted.

For now…

Technically, though, only one part of the ongoing labor dispute was resolved: Wages. The agreement reached this week does not resolve an ongoing, increasingly acrimonious battle over automation – i.e. the use of technology to improve efficiency in moving cargo. According to the ILA, shippers operating under the auspices of the U.S. Marine Alliance (USMX) continue to violate their current labor deal via the use of an automated gate system to process trucks at the port of Mobile, Alabama.

Union negotiator Harold Daggett said he is going to rally dock workers around the world against automation, vowing this week to “take these companies on.”

“We’ll shut them down for three weeks around the world,” Daggett told striking workers.

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The lack of an agreement on automation is one reason the current port deal lasts only through January 15, 2024 – at which point both sides will “return to the bargaining table to negotiate all other outstanding issues,” per a release (.pdf) from USMX.

The general consensus is the urgency for a temporary agreement was solely to alleviate political pressure on the administration of Joe Biden and Kamala Harris – both of whom would see their political prospects dim due to an extended work stoppage.

On wages, ILA negotiators agreed to a 62 percent pay increase over six years – up from the 50 percent hike previously on the table but less than the 77 percent their union bosses were seeking. The deal came after Biden/Harris “privately and publicly pressed the large shipping lines and cargo terminal operators who employ the longshore workers to make a new offer to the union,” according to reporters Paul Berger and Annie Linskey of The Wall Street Journal.

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U.S. Department of Transportation (DOT) secretary Pete Buttigieg repeatedly weighed in on behalf of organized labor, telling USMX “to present an offer that lets workers participate in (its) astronomical profits.”

Nice to know the federal government was an impartial broker in this process, right?

This media outlet strongly supports automation: Not only in the name of promoting efficiency, but in the name of protecting the American supply chain against future threats from Big Labor and its left-of-center political allies.

The best response to the threat of future work stoppages is to automate our ports much as possible, as soon as possible.

Am I saying that all jobs that can be automated should be automated? Yes. Unequivocally.

Seriously, put some autistic kids on the joysticks and let ’em have at it. In fact, take a look at how the process works in China, which is currently crushing the United States (and the rest of the world) in maritime efficiency.

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“Efficient, high quality port infrastructure can facilitate investment in production and distribution systems, engender expansion of manufacturing and logistics, create employment opportunities, and raise income levels,” a 2023 report (.pdf) from the World Bank Group noted.

Conversely, poor performing ports “can cause shipment delays, disruptions in supply chain, additional expenses, and reduced competitiveness.”

Of interest? The strike ended just hours after Florida governor Ron DeSantis vowed to deploy the Florida National Guard and the Florida State Guard to “resume operations at ports which are otherwise shut down” in the Sunshine State.

“Disrupting the distribution of food, equipment, and supplies as the southeast United States recovers from Hurricane Helene is unacceptable,” DeSantis said. “Floridians need a reliable, steady supply of resources and building materials to keep their families fed and rebuild their homes and businesses.”

“Unlike the federal government, Florida is taking decisive action to ensure that our economy continues to function and that victims of Hurricane Helene will have access to what they need to rebuild,” DeSantis added.

I wonder… where was that level of leadership from South Carolina governor Henry McMaster? In what is supposed to be a “right-to-work” state?

My media outlet has closely tracked port issues in the Palmetto State for years, including the pernicious impact of organized labor on maritime competitiveness. To wit: Unions recently won the right to operate all ship-to-shore cranes and all “RTG” cranes, or “rubber-tryed gantry” cranes at the SCSPA’s new Hugh K. Leatherman terminal. We covered this saga extensively over the last few years – noting how this costly new maritime facility was withering on the vine in the face of a boycott led by organized labor. 

Count on us to continue to keep our audience abreast of the very latest developments in what is clearly and ongoing (and escalating) battle…

BANNER VIA: S.C. PORTS AUTHORITY/ENGLISH PURCELL

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ABOUT THE AUTHOR …

Will Folks (Dylan Nolan)

Will Folks is the owner and founding editor of FITSNews. Prior to founding his own news outlet, he served as press secretary to the governor of South Carolina, bass guitarist in an alternative rock band and bouncer at a Columbia, S.C. dive bar. He lives in the Midlands region of the state with his wife and eight children.

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1 comment

Red Uprising October 4, 2024 at 3:17 pm

Automation should be driving the need for labor down. This should be for the benefit of labor – people should be able to have more leisure time without giving up their income. It should not be a cudgel to punish workers for daring to ask for more than crumbs.

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