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US East Coast and Gulf Coast port unions and employers are still at odds about automation

Both sides reported on Wednesday that despite a new round contract talks held this week, neither side had made significant progress in the crucial issue of automation.

This divide must be closed before January 15 in order to prevent a second port-strike that could disrupt the flow of goods across the country as importers, exporters and others prepare for possible upheaval due to President-elect Donald Trump’s threatened tariffs against a wide range of products from China and Mexico.

The International Longshoremen's Association is a staunch opponent of automation. They claim that it will destroy jobs.

Employers support automation and semiautomation. They say it's crucial for U.S. ports to be competitive and that it can increase cargo volume, which supports jobs. A senior official in the administration of President Joe Biden expressed concern about a possible new work stoppage for next year.

The union declined to comment on the matter but did address the issue in a post on Facebook that was removed later, though not before the information was circulated within the shipping industry.

The ILA is determined to not surrender any ILA positions, the union stated in a posting. It added that it had ended talks when the employer group insisted on incorporating semi-automation and automation language into its Master Contract proposals.

After significant involvement from the White House and Biden administration officials, the ILA ended a three-day walkout on October 3 after it had won a wage increase of 62% over six years through the United States Maritime Alliance.

This was the first major strike in the East and Gulf Coast Ports for nearly 50 years. It briefly stopped the flow of half the ocean shipping within the United States.

USMX met with the union for two days in this week to try and reach an agreement on a six-year contract before their extended deadline of Jan. 15.

USMX released a statement saying that "while we made positive progress on some issues, we weren't able to make any significant progress in our discussions which focused on a variety of technology issues."

The employer group stated that it "does not seek technology which would eliminate jobs."

The union said that it was "insisting" on a deal that would "move our industry backwards by restricting the future use of technologies that have been in place at some of our ports since nearly 20 years, making the future evolution of the supply chain impossible."

A driverless crane is one scenario that could be used to move containers from dock stacks onto trucks. Sources familiar with the negotiations said that union workers in remote areas lower the containers on the chassis so they are firmly placed.

Sources said that semi-automation helps terminals handle more containers, which creates jobs.

The tentative agreement announced last month will raise the average union wage to $63 per hour from $39 per hour over the course of the contract. This is dependent on the other issues being resolved. Reporting by David Shepardson, Washington; Lisa Baertlein, Los Angeles. Editing by Chizu Nomiyama & Bill Berkrot

(source: Reuters)