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As Trump prepares to take office, ports and dockworkers are facing down a new strike

Just months after a strike at Gulf and East Coast ports ended, operators and union dockworkers are now at an impasse — once again — over automation.
Port Strike
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When dockworkers walked the picket line in October, the strike lasted for 3 days.

And if a new contract between their 45,000 member union and the U.S. Maritime Alliance isn't signed by mid-January — a longer strike could send inflation going in the wrong direction.

Just months after a strike at Gulf and East Coast ports ended, operators and union members are now at an impasse — once again — over automation.

Port operators say they need more technology to increase port efficiency, improve safety and to control costs.

But union members say no, because some workers will lose their jobs.

A new strike could come if an agreement isn't reached by January 15.

And if that happens inflation could increase, when goods aren't flowing in an out of ports as quickly.

Thursday union leaders met with President-elect Donald trump at Mar-a-Lago and walked away with his support.

Writing about automation on Truth social, Trump said "the amount of money saved is nowhere near the distress, hurt, and harm it causes for American workers," and that foreign countries "...shouldn't be looking for every last penny knowing how many families are hurt."

RELATED STORY | Billions of dollars of U.S. economic activity halted as port workers enter day two of their strike

Professor Todd Belt of George Washington University called it Trump striking a different path than he did during his first term.

"During the first Trump term you had Donald Trump, surrounded by a lot of people who were suggested to him by incumbent Republicans who had really a Republican orthodoxy on free trade. Donald trump now is going to be surrounded by a lot of people who support his ideas of interventionism and tariffs, as well as other trade policies that will protect working people at the expense of, of course, inflation," Belt said.

The International Longshoremen's Association has until Jan. 15 to negotiate a new contract with the U.S. Maritime Alliance, which represents ports and shipping companies.

At the heart of the dispute is whether ports can install automated gates, cranes and container-moving trucks that could make it faster to unload and load ships. The union argues that automation would lead to fewer jobs, even though higher levels of productivity could do more to boost the salaries of remaining workers.

The Maritime Alliance said in a statement that the contract goes beyond ports to "supporting American consumers and giving American businesses access to the global marketplace — from farmers, to manufacturers, to small businesses, and innovative start-ups looking for new markets to sell their products."

"To achieve this, we need modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity, and strengthen our supply chains," said the alliance, adding that it looks forward to working with Trump.

In October, the union representing 45,000 dockworkers went on strike for three days, raising the risk that a prolonged shutdown could push up inflation by making it difficult to unload container ships and export American products overseas.

The issue pits an incoming president who won November's election on the promise of bringing down prices against commitments to support blue-collar workers along with the kinds of advanced technology that drew him support from Silicon Valley elite such as billionaire Elon Musk.

Trump sought to portray the dispute as being between U.S. workers and foreign companies, but advanced ports are also key for staying globally competitive. China is opening a $1.3 billion port in Peru that could accommodate ships too large for the Panama Canal.

There is a risk that shippers could move to other ports, which could also lead to job losses. Mexico is constructing a port that is highly automated, while Dubai, Singapore and Rotterdam already have more advanced ports.

"For the great privilege of accessing our markets, these foreign companies should hire our incredible American Workers, instead of laying them off, and sending those profits back to foreign countries," Trump posted. "It is time to put AMERICA FIRST!"

The Associated Press contributed to this report.