US ports longshoremen’s strike (East and Gulf coasts) (13 Viewers)

[superchuck500]

Ports from Maine to Texas are on strike. This will become more and more significant day by day.

The primary issues are pay and automation.

https://www.cnbc.com/2024/10/01/east-coast-ports-strike-ila-union-work-stop-billions-in-trade.html

 

[superchuck500]

The automation issue is really tough - the workings of a port, especially a container port, seem really apt for automation. I don’t know enough about the arguments but that business case seems hard to fight in the long run . . . unless the counter arguments are both compelling and true.

 

[efil4stnias]

The automation issue is really tough - the workings of a port, especially a container port, seem really apt for automation. I don’t know enough about the arguments but that business case seems hard to fight in the long run . . . unless the counter arguments are both compelling and true.

I think part of it is the union attempting to get what they can now, BECAUSE automation is inevitable for efficiency. As you well know, this is about leverage. As i see it, unless the ports already have massive amounts of automation in place, they really dont have much leverage.

I saw a snippet last night as the strike deadline passed- a professor from Penn interviewed saying he didnt think it would last long because of the amount of revenue that would be lost - somewhere close to $2B a DAY. ( all ports combined )

 

[SaintInBucLand]

I guess they should learn to code

 

[Mr. Sparkle]

I think part of it is the union attempting to get what they can now, BECAUSE automation is inevitable for efficiency. As you well know, this is about leverage. As i see it, unless the ports already have massive amounts of automation in place, they really dont have much leverage.

Check out the ports in Rotterdam, Guangzhou or Singapore. We are 20 years behind the curve on automation.

 

[El Caliente]

So for every day that the strike goes on you can expect a delay of 1 week in the delivery of goods? Is that what I heard on the news this morning?

 

[St. Widge]

I don't know all the issue involved but I heard this morning that the stevedore companies offered a 50% increase in pay that was turned down. If true, that really seems like a fair offer.

But, I would guess that automation is the bigger issue and I'm not sure how you really resolve that since it seems that automation is inevitable since I think many ships are now being built specifically to work with automation.

But, I have a sneaking suspicion that Mr. Sparkle knows a lot about this topic.

 

[Eeyore]

A 50% raise is worthless if you're not working. This seems to be Harold's final stand/ his legacy. Don't be surprised to see his son Dennis portrayed as the hero at the end of this. Just my guess.

 

[efil4stnias]

Check out the ports in Rotterdam, Guangzhou or Singapore. We are 20 years behind the curve on automation.

oh i dont doubt it for a second. We should have long moved to automation port side.

But- as you can see here, the reason we havent....a small group of unionized Americans are holding a large chunk of commerce and trade "hostage" to bleed as much money out the system before THEY retire. They arent worried about the next generation of dock workers- they know what is coming.

This is a power-play - coordinated at the precise moment that gives them as much leverage as they can garner ( ie public support by politicians running for office, public support for the "little guy" etc etc ). Gotta hand it to them, they could have done this 8 months ago. This was calculated.

 

[2009ring]

Automation is one of the issues, the other one is pay. The moran that runs the ILA union actually things that his workers are going to get a 77% pay increase over the next 6 years. That's like 11-12% a year and is crazy. The rest of us in the real world claw for our 2-3% every year.

IMO the 50% / 8.5% for 6 years was very fair.

Word within the industry is that the union boss Haggett wanted to have the strike as his legacy, there hasn't been a strike on the EC/GC in 44 years.

 

[efil4stnias]

I don't know all the issue involved but I heard this morning that the stevedore companies offered a 50% increase in pay that was turned down. If true, that really seams like a fair offer.

But, I would guess that automation is the bigger issue and I'm not sure how you really resolve that since it seems that automation is inevitable since I think many ships are now being built specifically to work with automation.

But, I have a sneaking suspicion that Mr. Sparkle knows a lot about this topic.

@bigdaddysaints posted on MAP board

Union wants 70% AND removal of current "all" automation.

 

[UncleTrvlingJim]

@bigdaddysaints posted on MAP board

Union wants 70% AND removal of current "all" automation.

yeah, that won't happen.

I suspect that this will go on for maybe a week before Biden forces them back to work with a promise to work on the issues, and then it gets settled to be like a 55% raise over 6 years, with some nominal language about guaranteed number of jobs for the next 6 years... or something like that.

And yes, this was timed to take advantage of the political environment... which is what they're supposed to do. But ultimately, they aren't getting 70% and a guarantee of no automation. And the federal government will step in eventually b/c of the overall damage to the economy would be too great. The longshoremen need to be careful to not overplay their hand.

 

[efil4stnias]

The longshoremen need to be careful to not overplay their hand.

Especially in light of reading the union leader wanted this strike to be part of his "legacy" -

thats a bold strategy Cotton.

 

[St. Widge]

@bigdaddysaints posted on MAP board

Union wants 70% AND removal of current "all" automation.

So they want to go back to unloading and tossing sacks by hand?

I kid, but they already use "automation" in the form of fork lifts and cranes to unload cargo. There were a lot more jobs for stevedores before then too, but the world advances.

Removal of all current automation is just a non-starter.