Let’s Talk… The Longshoremen Strike!
Last week the ILA went on strike for three days then paused because they got to an agreement on wages. They agreed to keep talking with regard to reaching an agreement on the automation issue. Here are my thoughts on the situation.
- In an interview, the head of the union, rightfully so, wants a piece of the increased profits made by shipping companies after the pandemic of 2020. He explained that before the shipping companies were making millions. Now they are making billions.
- The ports are the entryway for a large portion of imports. Any disruption will cripple the supply chain and possibly cause shortages of things we use everyday. This in turn can be inflationary.
- This is the first of many fights about automation. They are standing up for working class people who make above average wages. That being said, this could potentially quicken the automation timeline. Technology moves fast and when corporate profits are threatened, change will move at light speed. Keep in mind the head of the union acknowledges that the ports can be run autonomously with very little manpower. He also gave an example of ships with no crew that are being tested in Europe.
In the end, this is the first of many fights about automation and the race to replace the everyday “worker”. The AI arms race will only make this more interesting to watch.
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The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
