Looming Strike Threatens Supply Chain As Port Workers Protest Workplace Automations

Commercial port workers, represented by the International Longshoremen’s Association (ILA), are prepared to strike over the introduction of technology that automates work processes and potentially threatens human jobs.  

A contract covering longshore workers across the East and Gulf Coasts is set to expire at the end of September, and the stakes of reaching an agreement over contract disputes are high. Longshore workers are professionals who load and unload cargo ships in the commercial harbors and docks that underpin the supply chain. 

The New York Times reports that the union, representing over 47,000 members, halted negotiations with the United States Maritime Alliance in June after the discovery of an automated gate at a small port in Mobile, Alabama. The gate, which checks and processes trucks without human operators, is viewed by the union as a violation of their current labor contract. 

The ILA’s resistance to automation stems from past experiences where technological advancements led to job losses.  

“I demand that my longshoreman be taken care of, and their families and we will never allow automation to come into our union and try to put us out of work as long as I’m alive and my son Dennis is alive,” said Harold J. Daggett, the union’s president and chief negotiator. “We’re going to keep this Union strong.” 

The unionized workers say that technological innovations such as automated shipping containers have reduced the need for labor. Port operators, however, argue that modernization is critical to maintaining high efficiency throughout the year.  

Automated equipment, including driverless vehicles and cranes, is found to establish faster and more efficient cargo handling, but the technology is expensive and often requires a substantial investment in new machinery and software — investments that may not pay off quickly. 

Even though creating union jobs to maintain and fix automated machines may sound promising, the union remains highly cautious. While some eastern ports like the Port of Virginia have shown success with limited “semi-automated” operations — which it is allowed to operate under the union’s current contract — it has not completely erased workers’ job displacement fears. 

The New York Times reports that on the East Coast, longshoremen earn $39 an hour, with a significant portion making between $100,000 to $200,000 annually. Notably, the union’s West Coast ports, which allowed fully automated machinery in its 2008 contract, boast higher earnings and benefits for their workers. It’s reported these workers earn $54.85 per hour, around $218,000 per year on average.  

With no talks scheduled and the contract expiring soon, businesses relying on these ports are bracing for potential disruptions. If more companies divert shipments to the West Coast, significant delays and increased shipping costs could ensue.  

The labor clash at these ports reflects a much broader debate between preserving jobs and embracing the benefits that come from automation — an issue that will define the future of work for many industries. This contract dispute reveals a need for organizations to find a balance between tech innovation and safeguarding personal livelihoods.  

Automation will continue to reshape not only the job market but also the skills required for future employment, and the outcome of these debates could set a precedent for how other unionized sectors navigate the growing influence of automation. These debates could also lay the foundation for determining whether workers are empowered through retraining and new job creation or left vulnerable in a rapidly demanding economy.