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US port strike shines light on union's biggest enemy: automation

The dockworkers' strike on the U.S. East Coast, Gulf Coast and the Caribbean ended on Thursday. However, the key issue that was causing labor unrest on the continent -- the increasing use of automation -- remained unresolved.

Automation is seen by companies as a way to increase profits, while it's viewed negatively by unions. Dockworkers in North America who are fighting automation may find a solution through the port worker contracts of Europe.

After reaching a tentative wage agreement, 45,000 port workers of the International Longshoremen's Association ended their three-day strike on Thursday. The strike had caused ocean shipping to be shut down from Maine to Texas.

While talks continued, the port operators and workers agreed to extend the contract until Jan. 15, 2025. Automation is a key issue in negotiations for a six-year contract.

Harold Daggett told a group workers outside the Maher terminal, in Elizabeth, New Jersey during the strike, while they held signs that read "Machines do not feed families" or "Fight Automation, Save Jobs."

The union says the use of an automatic gate system in a port at Mobile, Alabama is a violation of their contract.

APM Terminals of Netherlands is the port's operator. APM Terminals is a member employer group United States Maritime Alliance. According to ILA, the auto gate system is able to process trucks that enter and leave the port without unionized labor.

APM Terminals is owned by A.P. Moller-Maersk has confirmed that the auto-gate was installed at the terminal since it opened in 2008. It is in compliance with the ILA/USMX Master Contract.

USMX has declined to comment.

CANADA FIGHT

The automation has also been a factor in port labor disputes that have affected global trade from Los Angeles to Vancouver.

The British Columbia Maritime Employers Association, which covers seaports throughout the Canadian province, made a final offer to the International Longshore and Warehouse Union Local 514 in Canada in June. 99% of its members rejected it.

The union was angry in part because Dubai Ports World Canada, a logistics company, had notified the labor group that it would introduce automation unilaterally at a major rail yard within the Port of Vancouver.

A spokesperson for the ILWU Coast Longshore Division said that on Tuesday, "Workers are fighting automation because they understand the negative effects of disappearing jobs on our families and community."

Since November 2022, the BCMEA has been negotiating with ILWU Local 514 on a sector-wide basis.

More than 7,300 workers in Vancouver went on strike last year as automation was a major issue with the BCMEA. The ILWU wanted to include in contracts language about training workers on how to repair new equipment introduced at ports.

When negotiations reached the 13-month mark, the Pacific Maritime Association, which represents terminal operators in California, Washington and beyond, claimed that union workers would "effectively" shut down terminals in Los Angeles, Long Beach, and Oakland, California, in 2023.

According to a report sponsored by the ILWU, which represents dockworkers on the West Coast, in 2020 and 2021 the Long Beach terminal would have 392 fewer positions if it had not been automated.

In a report that was commissioned by PMA, it was found that the number of paid hours in Los Angeles ports has increased by 31.5% ever since automation started in 2016. The authors refused to give figures for Long Beach only.

The union and PMA have agreed to a new six-year agreement that will establish a minimum level of staffing for terminals that implement automated equipment, and also discuss technological advances.

EUROPEAN CONTRACTS

Berardina Thomasi, policy officer for the European Transport Workers' Federation of dockworkers, said that port workers' unions in Europe have already negotiated against automation after Europe Container Terminals opened Rotterdam's world's very first automated container terminal.

Niek Stam is the secretary of FNV Havens - the largest Dutch dockworkers union.

The Dutch union is composed of more than 6,000 workers in three ports, including Rotterdam which is regarded as one of the world's most technologically advanced ports. Stam stated that the clause has been in their contracts for years.

The union, however, is concerned about the future of its members' careers as automation will reduce the number less intensive roles in ports.

Stam stated that workers cannot work at the most labor intensive jobs until they are 67 years old.

According to union officials in Europe and the United States, dockworkers can tolerate a certain level of automation.

"We are not against bringing in new technology that will make us more efficient," said Shaheem, a 41-year-old crane operator from New Jersey and ILA strike leader.

When you try to make something, it's going take away our job. That's where we run into trouble.

(source: Reuters)