Former economic advisor to Reagan, Art Laffer, says the workers at the port were being told the wrong thing as they rejected automation as the strike continued.
Labor strike by integrated dock workers At East and Gulf Coast ports that began Tuesday with the union and port employers at odds over a new contract, the use of robotics and technology at the ports is a sticking point in negotiations.
The International Longshoremen’s Association (ILA) and its approximately 45,000 workers are demanding a 77% wage increase in a new contract, as well as a halt to replacement projects that could cost jobs. In a statement on Tuesday, the ILA said it is “strongly opposed to any form of automation – full or partial – that replaces historic jobs or activities. We will not accept the loss of our members’ jobs and livelihoods due to automation.”
The US Maritime Alliance (USMX), which represents port employers in negotiations, said in a statement Monday that its offer would have provided a 50% raise and improved retirement and health care benefits and would “maintain the current language about automation and half-automation.”
Eric Hoplin, CEO of the National Association of Wholesaler-Distributors (NAW), said on FOX Business’ “Mornings With Maria” on Tuesday that the union automatic demands “they don’t make sense.” He mentioned that major ports around the world such as Shanghai, China, Rotterdam in the Netherlands and Singapore have adopted cranes and self-propelled vehicles in the ports, adding, “We have left after thirty years.”
NAW CEO CALLS ON BIDEN TO END UNION’S ‘DETERMINED ATTACK’ ON ECONOMY: LOCKED ‘BACK TO THE STONE AGE’
The ILA workers have defended themselves against job losses due to the high demand for mechanical equipment during their strike. (Photo by MAKA FELIX/AFP via Getty Images/Getty Images)
Douglas Kent, EVP of Corporate and Strategic Alliances at the Association of Supply Chain Management (ASCM), told FOX Business in an interview that, ” port infrastructure in the US and must remain globally competitive. ”
“If you look at what’s happening in Europe, the Middle East, the UAE, Singapore, for example, some of the more developed ports, you see investment in infrastructure to take advantage of increased levels. technology that can be integrated to drive efficiency and effectiveness and keep it flowing.”
“That issue is very important because it protects the worker because we keep things done by hand. But at the same time, it’s more expensive to do those things because we include technology and we have to pay more for people in remote areas,” said Kent.
BUSINESS GROUPS ASK BIDEN TO JOIN PORT STAKE
The Port of Newark and other ports on the Eastern and Gulf Coasts have been affected by the dock workers’ strike. (Photo by Selcuk Acar/Anadolu via Getty Images/Getty Images)
“The big question is, how sustainable is that situation? I mean, this is, again, another multi-year contract,” he said. “Are we really going to commit to not letting technology and automation be part of the equation for the future? It would be foolish to do that, so I think there’s going to have to be some give and take there, maybe automation. That has a little impact on number of employees that’s what it takes to do the job.”
“I think what they should be talking about, what is the change in the nature of the role? Are we doing things, let’s say, more intelligent versus manual, but not reducing the workforce to benefit. technology and allowing some scaling of power management. So new skill sets, new skills, skills they’re new,” Kent explained.
TAFT-HARTLEY ACT: WHY BIDEN WOULD USE THIS LABOR ACT TO STOP THE PORT STRIKE
The ILA union says it will continue to strike as long as necessary to secure what it sees as a fair contract. (Photo by GIORGIO VIERA/AFP via Getty Images / Getty Images)
Alexander Field, professor of economics at the Leavey School of Business at Santa Clara University, told FOX Business, “From a long-term perspective, automation is good because increases productivityand productivity, ultimately, is what drives our standards of living.”
“Now, that’s not very comforting when someone loses their job because of automation. So the question is whether that can be handled through layoffs or compensation. It’s really a conundrum in terms of the union’s needs,” Field said.
Ricardo Ernst, a professor of global business at the McDonough School of Business at Georgetown University, told FOX Business, “Not embracing technology is unfortunately a very bad thing because that is one of the sources of competition. If we don’t do it, believe me, other. places will do that and they will be more competitive than us.” “
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“What needs to be discussed is what other way do we get them. What ways can we retrain them? It’s a much bigger problem than just saying we’re stopping automation,” said Ernst. “Automation is inevitable.”
The head of the National Association of Wholesaler-Distributors, Eric Hoplin, responded to President Biden saying that he will not participate in the strikes at the port and discuss the ILA that wants to close the vending machine at the port.
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