In an effort to avoid what could be a crippling blow to the U.S. economy, one business leader is questioning the demands of the International Longshoremen’s Association (ILA) as they prepare for a strike in the coming days. As thousands of dockworkers prepare to strike if a deal isn’t reached by the end of Monday, Benchmark Capital’s Bill Gurley has taken to social media to express concerns about the union’s demand for a complete ban on automation at ports.
The ILA announced on Sunday that its 85,000 members, along with “tens of thousands of dockworkers and maritime workers around the world,” will hit the picket lines Tuesday and strike at all Atlantic and Gulf Coast ports from Maine to Texas. The union is demanding higher wages and a complete ban on automation for cranes, gates, and moving containers in the loading and unloading of freight.
Gurley responded to the union’s demands, writing that if the federal government doesn’t intervene, outlawing the effective use of technology will “unquestionably doom our nation.” He added that the U.S. would become “globally uncompetitive” if automation were banned.
The ILA and United States Maritime Alliance (USMX), which represents employers at the 36 seaports that could be affected by the strike, have been at an impasse over issues including wages and automation at ports. The USMX has refused to address a half-century of wage subjugation where Ocean Carriers profits skyrocketed from millions to mega-billion dollars while ILA longshore wages remained flat, according to the ILA.
In an effort to prevent a strike that could disrupt export and import shipments from East Coast and Gulf Coast ports, a potential port strike would cost the US economy up to $5 billion per day, according to an analysis by J.P. Morgan. A White House official confirmed on Friday that senior officials from the White House, Labor Department, and Department of Transportation have met with the parties ahead of the potential strike, urging them to return to the table and negotiate “in good faith fairly and quickly.
As negotiations continue, it remains unclear whether a deal can be reached before thousands of dockworkers walk off the job on Tuesday. If no agreement is made, the consequences could have far-reaching effects on the U.S. economy and international trade.
