US dockworkers are threatening to strike against automation, potentially disrupting the nation’s shipping industry and causing economic uncertainty. The 45,000-strong International Longshoremen’s Association is set to vote on a final contract that would raise wages by 62% over six years. However, union members are opposed to allowing additional automation at East and Gulf coast ports, arguing it will replace human labor without increasing efficiency.
The union’s president, Harold Daggett, says the machines aren’t more efficient than human labor and that corporations are prioritizing profits over workers’ jobs. Port operators and shipping companies counter that US ports are falling behind more automated ports worldwide.
A strike could have significant economic implications, with potential losses estimated at $500 million per day if it lasts less than a month. Retail experts warn of delays in future deliveries, lower sales, and increased markdowns. Companies are already taking steps to mitigate the impact by rerouting shipments and imposing surcharges on customers.
The top-paid dockworkers earn around $81,000 annually, but the proposed wage increase would bring their hourly rate above $60. Research suggests that there is no clear evidence confirming automation improves efficiency at ports or benefits dockworkers. The outcome of the strike will have far-reaching consequences for the US economy and the shipping industry.
Source: https://apnews.com/article/strike-labor-ports-longshoremen-8f2c193b414a2d810b9d38febe05e212