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Dockworkers’ Strike Highlights Automation Concerns Across U.S. and Canada
NEW YORK (Reuters) – A strike initiated by dockworkers on the U.S. East Coast and Gulf Coast, which significantly disrupted ocean shipping operations this week, concluded on Thursday. However, the underlying issue of increasing automation that is fueling labor unrest across North America remains contentious.
For businesses, automation is perceived as a strategy for enhancing profitability, while labor unions regard it as a dire threat to job security. As North American dockworkers confront this challenge, lessons from European port worker contracts may offer potential pathways to address these concerns.
Approximately 45,000 members of the International Longshoremen’s Association (ILA) ended a three-day strike after reaching an interim agreement concerning wage increases. The port workers and operators extended their existing contract until January 15, 2025, while continuing negotiations for a new six-year labor contract. A significant point of contention in the discussions centers on the impact of automation.
During the strike at the Maher terminal in Elizabeth, New Jersey, ILA leader Harold Daggett emphasized the importance of opposing automation, telling assembled workers, “We’ve got to keep fighting automation and semi-automation,” as they displayed signs proclaiming support for job preservation. The union claims that the automated gate system at the port of Mobile, Alabama infringes upon their contract rights.
The system, operated by APM Terminals—a subsidiary of A.P. Moller-Maersk—carries out the processing of trucks entering and exiting the facility through digital scans, eliminating the need for unionized labor as per ILA’s assertions. APM Terminals contends that the automated gate has been compliant with union agreements since the terminal’s opening in 2008.
CANADA UNDER PRESSURE
The issue of automation is not confined to the U.S.; it has also sparked labor disputes in Canada, affecting global trade routes from Los Angeles to Vancouver. In June, an overwhelming majority of the International Longshore and Warehouse Union (ILWU) Local 514 in Canada rejected the final proposal from the British Columbia Maritime Employers Association (BCMEA). A primary concern among workers was an announcement from Dubai Ports World Canada regarding plans to unilaterally introduce automation at the Port of Vancouver’s pivotal rail yard.
“Workers are challenging automation because they understand the detrimental effects of job losses on our families and communities,” remarked a spokesperson for the ILWU Coast Longshore Division. Negotiations between the BCMEA and ILWU Local 514 have been ongoing since late 2022.
Last year, labor unrest saw over 7,300 workers strike in Vancouver, primarily over automation disputes with the BCMEA. The ILWU sought contractual provisions to ensure training for workers on maintaining new machinery introduced at ports.
Meanwhile, the Pacific Maritime Association (PMA) reported that union actions in 2023 led to significant disruptions at West Coast terminals, including those in Los Angeles and Oakland, as negotiations extended well beyond a year. An ILWU report illustrated that automation at the Long Beach terminal contributed to a loss of 392 jobs compared to projections without automation.
Despite these concerns, the PMA released findings indicating that the total paid hours in Los Angeles ports increased by over 31% since automation was implemented in 2016.
Under the prospective new six-year agreement, both the union and PMA have proposed establishing a framework to ensure minimum staffing levels where automated equipment is introduced, and to facilitate discussions on technological changes.
LESSONS FROM EUROPE
Across the Atlantic, European dockworkers have already secured agreements aimed at safeguarding jobs against automation. This movement began after the launch of the world’s first automated container terminal in Rotterdam in 1993. Berardina Tommasi, policy officer at the European Transport Workers’ Federation, notes that European unions have included protections in their contracts for many years.
Niek Stam, secretary of FNV Havens, the largest Dutch dockworkers’ union, asserted, “Nobody can be sacked because of automation.” With a membership exceeding 6,000 across various Dutch ports, including technologically advanced Rotterdam, the union has initiated discussions to address concerns regarding job sustainability as automation continues to evolve.
Stam highlighted the need for dialogue with terminal operators about potential early retirement options, reflecting concerns about the physical demands placed on workers nearing retirement age.
A certain degree of automation is acknowledged as beneficial within the dockworker community, with stakeholders recognizing that technological advancements can enhance efficiency. “We’re not opposed to bringing in technology that makes us more efficient,” expressed Shaheem Smith, a New Jersey crane operator and ILA strike captain. “But when you start trying to create systems that eliminate our jobs—that’s where we draw the line.”
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