The brief dockworkers' strike last October, though short-lived, significantly impacted the American economy, costing billions in lost revenue. A temporary resolution was reached with a substantial wage increase for the International Longshoremen's Association (ILA), but critical issues like port automation were tabled. The current contract extension expires in January 2025.
However, negotiations stalled in mid-November, with the ILA withdrawing over proposed semi-automated equipment, viewing it as a threat to jobs. ILA President Harold J. Daggett firmly opposes automation, even expressing concerns over E-Z Pass use on tollways due to job displacement.
A World Bank and S&P Global Market Intelligence survey reveals US ports, particularly Los Angeles and Long Beach, are among the world's least efficient, trailing behind ports in developing nations. This inefficiency stems from the lack of automation. Unloading a container ship in the US can take one to three days, compared to 0.36 days in Japan.
Rather than resisting automation, Mr. Daggett should advocate for it while ensuring job security for union members. A strategy that embraces automation while guaranteeing affected workers retain their salaries and benefits could avert strikes and propel US ports into the 21st century.
Incoming Transportation Secretary Sean Duffy faces the immediate challenge of prioritizing efficiency and modernizing US infrastructure, shifting focus from equity concerns to enhance global competitiveness.
The solutions are clear; the challenge lies in their implementation.
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