Automation, negotiation and supply chain disruption

A recent post talked about how the East Coast and Gulf Coast Ports contract discussions were set to resume this week. The contract talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) broke down. The core issue? The same core issue that the union is dead set against, and has been, for months: automation.

The ILA walked away from negotiations after USMX proposed incorporating semi-automated equipment into a new six-year labor pact. While the USMX highlights modernization as key to improving safety and efficiency, the ILA views these proposals as a direct threat to the jobs of its 45,000 union members.

This standoff follows an October 2024 strike that temporarily froze container handling across 36 ports, impacting billions in trade. The ILA has remained firm in its stance against automation, stating, “Our resolve remains strong not to surrender any ILA jobs.”

USMX argues otherwise, asserting that modernization is vital for supply chain resilience and long-term job growth. The clock is ticking, with the current contract expiring on January 15, 2025. Will common ground be found, or do we go right back to the drawing board?

For what it’s worth, only five US ports crack the Top 100 most efficient global ports. Most estimates I read say that US port efficiency in aggregate would rank us somewhere between 150-200.

This negotiation highlights a broader question: how do we balance technological advancements with the livelihoods of workers? Or- who wants to come in 150th in a race?

What’s your take?