Short-term Gains At The Expense Of Long-term Gains

On Sunday, John Stossel posted an article at Hot Air about America’s ports. In the fall, the International Longshoremen’s Association went on strike asking for higher wages and a ban on automation. A strike was avoided when the current contract was extended until January 15th. President Trump takes office on January 20th. The Longshoremen’s strike will be one of the first things he has to deal with. I am hoping he follows the example of Ronald Reagan’s handling of the air traffic controllers’ strike.

The article at Hot Air reports:

America’s ports have fallen behind. Not a single one ranks in the top 50 worldwide.

A big reason is that dock unions stop innovation.

This fall, the International Longshoremen’s Association shut down East and Gulf coast ports, striking for a raise and a ban on automation. They got the raise.

 Now union president Harold Daggett says longshoremen will strike again in January if they don’t get that ban on automation.

His statement in my new video makes it clear that he knows how badly his strike would damage other Americans.

“Guys who sell cars can’t sell cars, because the cars ain’t coming in off the ships. They get laid off,” says Daggett. “Construction workers get laid off because materials aren’t coming in. The steel’s not coming in. The lumber’s not coming in. They lose their job.”

Obviously, labor leaders aren’t necessarily “pro worker,” says Mercatus Center economist Liya Palagashvili.

“They’re saying, ‘We don’t care if these other jobs are destroyed as long as we get what we want.'”

Daggett is unusually clueless. He doesn’t understand that a ban on automation will also hurt his members.

As Palagashvili puts it, “They’ll save some jobs today, but they’ll destroy a lot more jobs in the future.”

The article also notes:

That’s because today’s shippers have options. Daggett’s union only controls East and Gulf coast ports. Shippers can deliver their products to ports that accept automation. 

“We’re going to see less activity in ‘Stone Age’ ports,” says Palagashvili.

“Stone Age?” 

“They want to ban automated opening and closing of port doors,” she points out, requiring workers to pull heavy doors themselves.

Weirdly, the union boss makes his demands while also pointing out that dockworker jobs are dangerous.

“Very dangerous … We’ve had 17 people killed in the last three years!”

That’s terrible, but it’s an argument for automation! Using machines instead of vulnerable humans protects human workers. Daggett’s arguing against himself!

I see why he wouldn’t agree to an interview.

“It’s backwards,” notes Palagashvili. “(If) you care about the safety of these workers, you should enhance their jobs and make them safer and better. And the only way you can do that is with technological advancements in automation.”

Other countries have used automated cranes for years. They’re 80% faster than the human-operated cranes in many American ports.

It will be very interesting to watch the outcome of this strike. If the union gets its wage hikes and ban on automation, business may go to other ports and the ports involved may lose traffic. If the unions go on strike, business will go to other ports. I think that if I were a union member, I would want a new leader.

This Is NOT A Solution

The mainstream media is happily reporting that the dock workers’ strike is over. Well, it is for now. There are a few problems with that statement. Both sides have agreed to extend the current contract through January 15th (a Wednesday) while they continue to negotiate. The new President (whoever that may be) will be sworn in January 20th (a Monday). We should be prepared for an extended strike at that point.

A U.K. Daily Mail article updated October 4th states:

President Joe Biden and Vice President Kamala Harris celebrated the news that the International Longshoremen’s Association union had temporarily paused their strike until after the election.

The union ended their three-day strike until January 15, after reaching a temporary agreement with the U.S. Maritime Alliance.

The port employers offered workers to increase wages by 62 percent, according to reports, which helped reach a ‘tentative agreement.’

That’s a pretty major wage increase. Because it will increase the cost of every item shipped, what will it add to the price of goods and the increasing inflation?

This is not a solution to the problem–it is simply kicking the can down the road so someone else can deal with it.

The Strikers Are Looking In The Wrong Direction

On Tuesday, The New York Post posted an article about the east coast port strike. The International Longshoremen’s Association (ILA) has gone on strike requesting (according to MSN) a major increase in wages and limited automation.

MSN quotes CNN:

The ILA reportedly opened the talks by asking for a 77% pay raise for its members over the six years the new contract would cover. The union said this amount was necessary due to inflation and years of insufficient pay raises. By Monday, USMX had counteroffered with a 50% pay raise over six years.

But the pay raise isn’t the only issue. The ILA wants a ban on all automation at docks, which it says could put some of its members out of work. However, the USMX only offered to keep the existing limits on automation that the old contract covered.

As a result of these discrepancies, the two sides were unable to come to an agreement before the previous contract expired, and thus the strike began just after midnight.

The New York Post article focused on the leader of the union:

Fiery union boss Harold Daggett has long cast himself as a staunch advocate for blue-collar workers, even as he has lived in luxury, owning a yacht and driving a Bentley — and fought off alleged ties to the Mafia.

Sporting a polo shirt with a chunky gold medallion around his neck, the 78-year-old Daggett, who as president of the International Longshoremen’s Association is leading the port strikes stretching from Maine to Texas, was prone to theatrical flourishes in a September interview as he geared up for the strike.

“They’re gonna be like this,” Daggett said, grabbing his neck in a choking gesture. “I’ll cripple you. I will cripple you and you have no idea what that means. Nobody does.”

…Meanwhile, Daggett — has worked at the ILA for 57 years and took the helm as president in 2011 — raked in $728,000 in compensation last year from the ILA.

He collected another $173,000 as president emeritus of a local union branch, according to labor department filings.

He lives in a 7,136 square-foot house valued at $1.7 million on a 10-acre lot in Sparta, New Jersey, according to Zillow and NJ Property Records.

It seems to me that the dock workers need to take a really good look at their union leadership before following Daggett too far off the cliff.