The port strike isn’t over; it’s on pause for the next few months. And the biggest sticking point which puts your business in danger has yet to be agreed upon.
This has been a battle about two issues: wages and automation. The wages part has been settled thanks to the agreement reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). ILA workers will get a 62% increase in pay over the next six years and are back at work today while the two sides iron out the “outstanding issues” between now and January 15, 2025. On that day, the ILA is once again at risk of holding our businesses hostage.
The ILA president has said on camera that to strike is their strategy to bring down businesses nationwide. “I will cripple you. In today’s world, I will cripple you, and you have no idea what that means.” He brags that shipments will be delayed, products will disappear from shelves, and jobs will be at risk across the nation if the ILA doesn’t get the airtight language against automation they’re demanding in their contract.
Think about it. If building materials don’t arrive then construction workers will lose their jobs. No cars to sell? Salespeople will be laid off. Ultimately your business could come to a halt because of his strike. Next, the stock market will respond to the uncertainty.
How have we allowed a single union to wield such power over the economy?
The American consumer already started to panic by stockpiling toilet paper—ironic, since toilet paper doesn’t even come through those docks. But the fear seeped in.
At the core of this remaining sticking point is a resistance to change, particularly automation. These dock workers are not resisting advanced technologies like AI, but automation as simple as time tracking. Did you know the docks employ schedulers who write down by hand who is on-site, when they arrived, and when they leave? The union has negotiated anti-automation language that prevents the implementation of a timecard stamper. Now think: who benefits from inaccurate time reporting?
Ironically, what the union is doing is highlighting just how much we NEED automation at our ports. Putting our nation’s supply chain in the hands of people who relish crippling our economy is something I’m not okay with. Are you? Automation removes the lack of predictability and vulnerability that come with labor disputes, ensuring that supply chains remain intact. And in a global economy, the ability to mitigate these risks is more important than ever.
I’m thrilled for the pay increase the dock workers received. “Shippers have made record profits since the pandemic, and in some cases, have seen profits grow in excess of 800%,” White House press secretary Karine Jean-Pierre said, referring to a boom in shipping demand since the COVID-19 pandemic. I’m glad the dock workers got the wage increase they wanted. But this automation sticking point has got to go.
It is downright un-American.
Our research has shown that the cultures that win are those that are able to adapt. The focus now should be on how quickly industries can adapt to this new reality. Automation isn’t about displacing workers; it’s about protecting the future of business. By investing in technology now, businesses can prevent future disruptions, ensure efficiency, and stay ahead in an increasingly volatile landscape.
And perhaps the union workers can use these next few years to adapt their skills so they can get the next job once machines take their place.
Elsewhere In Culture
Impact Plastics addresses ‘missing and deceased employees’ after floods
Impact Plastics’ response to the floods leaves much to be desired when it comes to accountability. While they expressed sympathy, the real question is, who made the call that left people in dangerous conditions? There’s been talk about the CEO being called a murderer, but I saw an interview where someone said a frontline supervisor told employees they couldn’t leave until they checked with Jerry—a higher-level manager. When they finally did, Jerry gave the green light to go home. So, is this as clear-cut as it seems?
Before we rush to blame, we need to understand if this was a failure in communication or leadership. Was it a series of people assuming management wanted to stay, or was there mandated communication that left employees at risk? Either way, the real failure here is in not making expectations crystal clear and prioritizing safety. It seems like that wasn’t done, and it’s a devastating lesson in how miscommunication can lead to tragic consequences.
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This isn’t just a one-time glitch—it’s part of a troubling trend in 2024, with other major companies like AT&T and Microsoft also experiencing widespread outages. The response from Verizon’s CEO lacks the urgency and transparency required in situations where millions rely on consistent service. When trust in technology is already fragile, downplaying the severity only deepens the gap between corporate leadership and the consumers they serve.