As thousands of dockworkers are preparing to strike should a deal not be reached by the end of Monday, one business leader is questioning the union’s demand for a total ban on automation.
Benchmark Capital’s Bill Gurley reacted on social media to the union’s demands, writing that the federal government should step in if the union seeks a total ban on automation.
“Outlawing the effective use of technology will unquestionably doom our nation,” Gurley wrote.
“United States Maritime Alliance (USMX) refuses 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,” the ILA said Sunday.
An analysis by J.P. Morgan estimated a strike would cost the US economy up to $5 billion per day.
One business leader is questioning the union’s demand for a complete ban on automation, as thousands of dockworkers are getting ready to go on strike if a deal is not reached by the end of Monday.
The 85,000-member International Longshoremen’s Association (ILA) announced on Sunday that on Tuesday, they will walk the picket lines at all ports along the Atlantic and Gulf Coasts, spanning from Maine to Texas, along with “tens of thousands of dockworkers and maritime workers around the world.”. “.
Raising wages and outlawing automation of cranes, gates, and container movement in ports for the purpose of loading and unloading cargo are among the demands made by the union.
Bill Gurley of Benchmark Capital responded to the union’s demands on social media, saying that if the union wants a complete ban on automation, the federal government ought to intervene.
Gurley stated that “outlawing the effective use of technology will unquestionably doom our nation.”. We’ll lose our ability to compete on a global scale. “.
A deadlock has been reached over issues like wages and automation at ports between the ILA and United States Maritime Alliance (USMX), which represents employers at the 36 seaports that could be impacted by the strike.
“A half-century of wage subjugation wherein Ocean Carriers profits skyrocketed from millions to mega-billion dollars, while ILA longshore wages remained flat,” the ILA said on Sunday. “United States Maritime Alliance (USMX) refuses to address this issue.”.
Prior to the possible strike, senior representatives from the Labor Department, the White House, and the Department of Transportation met with the parties, a White House official confirmed to Fox Business on Friday. They were urged to return to the table to negotiate “in good faith fairly and quickly”. “.
A possible port strike would impede a range of shipments from East Coast and Gulf Coast ports, both import and export.
A breakdown by J. H. P. Morgan calculated the daily economic damage from a strike to the US could reach $5 billion.