
A tentative deal between the International Longshoremen’s Association (ILA) and port operators has temporarily paused the recent strike, offering some relief to businesses and consumers. However, key issues, particularly port automation, remain unresolved. While both parties agreed on a wage increase—boosted to 61.5% over six years—the ILA’s firm stance against automation is still a major sticking point.
Automation has been introduced at all major U.S. ports, according to the Government Accountability Office (GAO), with technology increasingly handling container movements and other critical tasks. Despite studies suggesting automation can improve efficiency and create new jobs, the ILA maintains that it threatens the livelihoods of dockworkers. “Automation will continue to be an issue,” the union stated, making it clear that they want to tighten the restrictions on technology at U.S. ports.
The wage increase offer, which had initially been set at 50%, was raised after intense negotiations, but the ILA remains focused on preventing further automation. Peter Sand, chief shipping analyst at Xeneta, warned that despite the positive step of ending the strike, automation remains a critical point of contention. “Shippers are not out of the woods yet,” Sand said, stressing that only 100 days remain to finalize the deal before the risk of future strikes looms large.
ILA President Harold Daggett, who has long opposed automation, has been particularly vocal on the issue. He has described automation as threatening jobs and livelihoods in the U.S. port sector. This strong opposition stems from the ILA’s concerns over job losses in the wake of increasing port automation, which the union views as a direct threat to the longshoremen’s role in the industry.
As the deadline approaches, industry experts remain cautious. The future of U.S. port operations—and the potential for more labor unrest—depends on whether both sides can find common ground on automation and other outstanding issues.