Dockworkers union's calls for automation restrictions at US ports could undercut competitiveness

foxbusiness.com:

Former Reagan economic adviser Art Laffer says port workers are misinformed as they dismiss automation amid ongoing strike.

A labor strike by unionized dockworkers at East and Gulf Coast ports began Tuesday with the union and port employers at an impasse over a new contract, with the use of automation and technology at ports a sticking point in negotiations.

The International Longshoremen's Association (ILA) and its roughly 45,000 workers are seeking a 77% pay raise over the new contract, as well as putting a stop to port automation projects that could cost jobs. In a statement Tuesday, the ILA said that it is «steadfastly against any form of automation – full or semi – that replaces jobs or historical work functions. We will not accept the loss of work and livelihood for our members due to automation.»

The U.S. Maritime Alliance (USMX), which represents port employers in negotiations, said in a statement Monday that its offer would've provided a 50% raise plus improved retirement and health care benefits and would also «retain the current language around automation and semi-automation.»

Eric Hoplin, CEO of the National Association of Wholesaler-Distributors (NAW), said on FOX Business' «Mornings With Maria» on Tuesday that the union's automation demands are «unrealistic.» He noted that major ports around the world like Shanghai, China, Rotterdam in the Netherlands and Singapore have embraced automated cranes and vehicles in ports adding, «We're already three decades behind.»

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ILA dockworkers have made protections against the loss of jobs due to automation a key demand amid their strike. (Photo by MARK FELIX/AFP via