US East and Gulf coast ports face shutdown as union announces intent to strike

35 pointsposted 13 hours ago
by casefields

86 Comments

thecrash

10 hours ago

An interesting thing about labor disputes like this is they're presented as quasi-political stories, where people eagerly argue "for" or "against" the union or corp as though they were political parties or philosophical camps or something.

But as with most economics, it doesn't really matter what you think is fair, or who has the best justification. These are simply economic forces testing each other, and whichever is strongest will prevail.

People in the US are so accustomed to working class people being universally disempowered that we find it perverse and "upside down" that some workers could actually have the economic force to make demands and have them met. Meanwhile employers routinely make arbitrary demands and have them met. It doesn't even occur to anyone to argue about them, because it's recognized that employers simply have the power to demand whatever they want from their employees, and that this is natural and reasonable.

dragonwriter

8 hours ago

> An interesting thing about labor disputes like this is they're presented as quasi-political stories, where people eagerly argue "for" or "against" the union or corp as though they were political parties or philosophical camps or something.

That's because they are political.

> But as with most economics, it doesn't really matter what you think is fair, or who has the best justification. These are simply economic forces testing each other, and whichever is strongest will prevail.

That's not different than other political issues (“politics” and “economics” are different lenses for viewing the same disputes over the distribution of social power) and “strength” here is absolutely inclusive of political strength in the narrow sense, since government has a substantial potential role in both the immediate resolution of the dispute and in setting the playing field on which the repeated series of disputes takes place.

simonsarris

2 hours ago

> These are simply economic forces testing each other, and whichever is strongest will prevail.

I guess the mob making demands on business is simply economic forces testing each-other, by one accounting. But it feels a tad incomplete.

Sytten

12 hours ago

They rejected a 5$/h per year increase for 6 years (77% salary improvement over the period). Given what I know of Canadian Port workers they are often paid more than 100k$/y and they put their children on lists to get jobs. The incentives to automate as much as possible is clearly there for business owners even outside of strikes.

They also dont get much love from the public. The known ties with organized crime might have something to do with it and the general impression (right or wrong) that they are never happy despite having very good conditions/salaries.

JumpCrisscross

11 hours ago

The union demands “a total ban on the automation of cranes, gates and moving containers in the loading and unloading of freight” [1]. This is purely extractive.

Better: encourage automation, but require re-training alongside job guarantees and better pay and benefits. Do we really think making our ports more efficient won’t yield dividends in increased volumes?

[1] https://apnews.com/article/longshoremen-strike-ports-pay-con...

thecrash

10 hours ago

That looks better from your position, but if your proposal was a better deal for port workers, they would probably be asking for it in negotiations.

The port workers are negotiating based on what is best for their careers, not what would be optimum for society broadly.

Almost everyone does this with their own career - we push for more favorable wages, conditions etc simply because we want them and we believe our value to our employer justifies them.

Rarely does anyone else complain about this. The difference is that union workers do it at scale, and are therefore often more effective than the rest of us. So it seems like they're getting an unfair deal, but there's nothing unfair about it - they're just better negotiators.

blackeyeblitzar

8 hours ago

What’s unfair is that others can’t work without paying the union. It’s a monopoly on labor in a system that relies on competition.

user

11 hours ago

[deleted]

nkurz

13 hours ago

Can someone make the case for why we should support the port workers in this situation? My intuition is that while they are probably competent at what they do, there are likely many people who would be eagerly and immediately replace each of them if offered the opportunity to do the same work for the same wage. And increased automation and efficiency at the ports seems like it would have significant benefit for rest of the nation.

skhunted

12 hours ago

There is no need to make a case. They have the right to strike. In general though one should support workers when they seek higher wages since the pay has increased at a much lower rate than productivity the last 40 years or so. Enough wealth has been extracted from labor. It’s time to give labor its due.

seizethecheese

12 hours ago

I just looked up FRED data on productivity and total compensation (including benefits) and they look roughly in line. Actually, compensation seems to have gone up faster.

To be honest, this comment reads like a political campaign statement, and I’d like less of this on Hacker News.

skhunted

12 hours ago

To be honest, this comment reads like a political campaign statement, and I’d like less of this on Hacker News.

To be honest this comment reads like a statement from someone who can’t dispassionately discuss something. The validity of what I wrote is independent of the motivation for writing it.

seizethecheese

11 hours ago

I was reacting to this: “Enough wealth has been extracted from labor. It’s time to give labor its due.” It sounds like a campaign speech.

skhunted

12 hours ago

https://www.epi.org/productivity-pay-gap/

This next paper is funny. Notices the decoupling and tries to hand wave it away without explaining why there was no decoupling before the 80s. At any rate note that the graph is from FRED.

https://fredblog.stlouisfed.org/2023/03/when-comparing-wages...

ethbr1

11 hours ago

The FRED blog discussion makes an interesting point about whether deflators are calculated from import or export prices changes (or both), and the effects it has on the analysis.

Reminder of how difficult it is to make real-terms adjustments to economic measures over multiple decades spans when a country's balance of trade with the world in different sectors is also changing!

skhunted

11 hours ago

Notice though that the FRED blog post does not explain away the discrepancy but merely mitigates it a bit. Note the decoupling still starts in the 70s. The great wealth disparity that exists today started at the same time. I don’t believe this is a coincidence.

ethbr1

10 hours ago

"A bit" is imprecise for the adjustment. I'd say more than a bit.

It also suggests that if you dice it up by sector you might get different amounts of decoupling, which makes logical sense given productivity gains aren't equally spread.

skhunted

3 hours ago

Sure. But in general there was no decoupling prior to 1970 and there is now decoupling. There has been wealth extraction from labor. That it is more prominent in some sectors than others is not too relevant in my opinion.

ethbr1

43 minutes ago

You seem to be looking for facts to support your argument, instead of being curious about what the facts are.

seizethecheese

10 hours ago

The link is absurd. The productivity data is for everyone while the wage data is for a subset of data. If you look at compensation for everyone against productivity it tells a different story

whatever1

12 hours ago

Can you share the links because from what I see the federal minimum wage is stagnant for decades.

seizethecheese

12 hours ago

Search FRED employment cost index.

The federal minimum wage is irrelevant. Something like one percent of workers make federal minimum wage. It’s a good political talking point though…

skhunted

11 hours ago

Yes, let’s ignore the million plus workers getting minimum wage. A wage that hasn’t increased in a very long time. It’s not a political talking point; it’s a moral talking point.

JumpCrisscross

11 hours ago

> the million plus workers getting minimum wage

Neither of you have a point. Median wages have lagged productivity growth. But most Americans don’t earn the minimum wage.

skhunted

11 hours ago

We should ignore that a million plus people are working for minimum wage. They don’t count. I agree with you.

It’s better to say that the statistics aren’t changed much by increasing the federal minimum wage as it pertains to the productivity/pay gap. But one should acknowledge that for those making minimum wage it is a disgrace that it hasn’t increased for a long time and that it is far too low. Those people do matter. This isn’t just a discussion about statistics. There is a human element to the issue and morality is part of what one ought to consider when thinking about the issue.

EDIT: I edited my comment while you were responding. The discussion in the present thread is not about the dockworkers. It’s about the pay/productivity gap in the U.S. In that discussion a person said that minimum wage workers were irrelevant and that the minimum wage was just a political talking point.

JumpCrisscross

11 hours ago

> They don’t count

That’s unfair.

Of course they count. The question is whether port logistics is the best policy tool with which to address their plight.

The striking dockworkers don’t earn minimum wage. If the striking workers win, the minimum wage stays right where it is and has been for ~2mm minimum-wage workers [1]. This isn’t a fight about minimum wage. They count. But they aren’t relevant.

> about the pay/productivity gap in the U.S.

Fair enough. I believe we need a minimum-wage hike. But I don’t see how that’s relevant to a union strike.

[1] https://en.m.wikipedia.org/wiki/Minimum_wage_in_the_United_S...

seizethecheese

10 hours ago

Average compensation has not lagged productivity growth. Maybe median has? Maybe only some subset?

Longshoreman make well above median wage.

seizethecheese

10 hours ago

This argument shifted the goal posts. First, it was about compensation in general against productivity. now it’s about minimum wage workers, who comprise 1% of the workforce ? What is the productivity change of minimum wage workers? (I actually don’t know.)

lotsofpulp

12 hours ago

What if the workers are opposing automation?

JumpCrisscross

12 hours ago

> What if the workers are opposing automation?

The union is demanding “a total ban on the automation of cranes, gates and moving containers in the loading and unloading of freight” [1].

That said! They are negotiating. This is their opening ask. If they stick to it, fuck them. But maybe they can permit modernisation alongside a pay raise.

[1] https://apnews.com/article/longshoremen-strike-ports-pay-con...

zifpanachr23

12 hours ago

Workers have a right to oppose automation and strike over it if they so choose.

JumpCrisscross

12 hours ago

> Workers have a right to oppose automation and strike over it if they so choose

Workers have a right to strike. But there should be room, at the same port, for trying a more-efficient approach.

The management of this unionised workforce shouldn’t have a choice. But this union’s members shouldn’t have dictatorial power over our Eastern seaboard’s port infrastructure.

(Also, I have the right to demand a personal battleship. Not everything one has the right to do is reasonable.)

throwawa14223

12 hours ago

And the rest of society has a right to bypass and work around them.

refurb

12 hours ago

Sure they have the right. But the bigger question is - is it a net benefit for society to do so?

skhunted

11 hours ago

Would that we ask if it is a net benefit for society that so much wealth extraction from labor has occurred the last 40 years.

ethbr1

11 hours ago

We shouldn't right wrongs by deliberately capping economic efficiency, especially in sectors that are foundational to the rest of the economy (e.g. maritime trade and energy).

skhunted

11 hours ago

Indeed. And we shouldn’t ask if it is in society’s best interest only when the discussion is about benefits for labor.

ethbr1

11 hours ago

We shouldn't. Dockworkers should allow automation, and those jobs that remain should capture a fair share of the increased productivity in increased wages.

thecrash

10 hours ago

The difficulty is that owners don't just voluntarily hand out "fair shares" to workers who agree to play nice. The only reason workers get paid at all is because if they stopped getting paid, they would stop working.

Once enough automation is introduced, the owners really have no incentive to pay a fair share to anybody whose labor they no longer need. So any promises to "share the wealth" that comes from automation ring hollow.

ethbr1

3 hours ago

That is and isn't how things work in reality.

Once business adds additional automation, (a) the business made additional investment in the automation, (b) the remaining jobs tend to be higher-skill, (c) (after recouping cost of automation) the business now has better margins and can afford to pay the remaining employees more, (d) because of (b) and (c), they usually do pay their remaining employees more as a way to retain now even more critical labor.

Businesses rarely automate the hardest / highest-skill parts of the job first. Why would they? There are lower-hanging fruit.

lotsofpulp

3 hours ago

I don’t think is true. “Higher skill” is nebulous, but lots of automation quick reduces higher paid positions, such as software that allows people to be more productive or technology that obviates many other devices (smartphones).

But the pace of automation is slower for high touch work, such as nursing home work, cleaning, cooking, and other jobs that typically pay the least.

Of course, there is a need for very specialized work that could pay more, such R&D in cutting edge computing, medicines, chemistry, etc, but the chances of achieving that level of expertise does not seem realistic for the majority of the population.

ethbr1

43 minutes ago

You're looking at it in terms of capability, instead of ROI.

CFO/COOs typically aren't investing in the highest-capability automation, because that's the most capital-expensive automation.

It's far cheaper and easier to buy another crane or loader, driven by a person, than a fully autonomous system.

So given the two options, they'll usually pick the former (because it has quicker ROI).

There are some exceptions, if a large proportion of the work is high-skilled, e.g. pharmacy, but with dockworkers we're probably talking about the lowest-skilled jobs being eliminated first.

bankcust08385

12 hours ago

Put yourself in their shoes before leaping to hand waiving how it would be "better for everyone else." 100% automation of cranes means lost jobs.

JumpCrisscross

12 hours ago

> how it would be "better for everyone else." 100% automation of cranes means lost jobs

There is a reason it’s faster, simpler and cheaper to ship stuff via air versus ports in cases where it seems to not make sense. (I recently dealt with this in olive oil and glassware.) The idea that we can run inefficient ports so someone can manually pilot a crane without any cost is ridiculous.

skhunted

11 hours ago

Someday negative externalities will have to be factored into the costs of doing business. Hopefully it will occur before we turn the world into a toxic shithole. Likely not though.

refurb

12 hours ago

Plenty of furriers lost jobs when we moved to cars. Bloodletters lost jobs when modern medicine was adopted.

I’m not sure jobs should be the priority over progress.

darth_avocado

11 hours ago

We are all going to pretend that the cost savings will transfer to consumers and not CEO pay and shareholder value like it has every single time in recent history?

JumpCrisscross

11 hours ago

> like it has every single time in recent history?

You believe you have seen no benefits from industrialisation, electrification and digitisation?

ars

12 hours ago

No, it means shifted jobs. There's enormous demand for construction employment right now, they would have no trouble finding other employment.

In the entire history of the world automation has never caused employment reduction, only a shift.

darth_avocado

11 hours ago

No, it means unemployment for a portion of the workers, shifted jobs for some workers and more responsibilities for the rest who get to keep their jobs. And it also means more profits for CEO pay and shareholders, and no net benefits to end consumers.

redserk

12 hours ago

This is either disingenuous or ignorant of reality.

Yes. Your Econ 101 class may have taught you jobs will shift. Econ 101 does not give you the case study of a 45 year old worker who finds themselves having to restart their career.

So yes, across many years a shift in employment happens.

To the guy who lost his job and now has to figure out what to do, he risks being unable to find a career anywhere near where he was at.

Ideally we would have retraining programs that would meaningfully train and place people into new jobs, but efforts are largely performative.

ars

12 hours ago

The type of work they were doing translates really well into construction, trucking, and warehouse work. Any retraining is pretty minimal, and all of those fields are desperate for workers.

Also, what's your alternative plan? Just freeze all jobs at current level of technology, because we can never make any changes?

Most ports in the world are automated - they are literally doing pointless busy work!

ethbr1

11 hours ago

> translates really well into construction, trucking, and warehouse work.

I agree with you, but I think Amazon has shown how much it values warehouse workers.

tzs

11 hours ago

Automation can be phased in. As existing workers in a given field retire or leave for different work elsewhere automate their positions instead of hiring replacements.

Similar when expanding. Fill the new positions with automation.

redserk

12 hours ago

What is your experience with construction or working on docks to make this assumption?

Assuming that because someone may arrive home with some debris and grease does not mean the work is directly transferable.

giantg2

12 hours ago

Yeah, and I should be able to get a Go job if I know Python, Java, etc. Not as easy as it looks on paper.

ars

12 hours ago

You absolutely should be able to do that. If you know how to program another language, then a couple weeks of using the new language should get you the point of employment, and a couple months should put you close to where you were with the previous language (other than some of the rare esoteric stuff).

And employers know that, and (other than contracting work) they'll usually hire with the expectation of rapid training, and it's not an issue.

giantg2

11 hours ago

"And employers know that"

That hasn't been my experience. Most hiring managers I've had interviews with are in a hurry and want people with experience now. Good luck getting the job if you have to do a code screen against people with years of experience with that language.

user

12 hours ago

[deleted]

toomuchtodo

12 hours ago

Labor is the source of all wealth and all culture (Marx). They strike because they can, and their labor has value. If it didn’t, the strike would not be feared.

Why should we care if the corporation profits more? I am not in the top 10% owning 93% of total US equities, so I do not care. Automation so the wealthy get wealthier doesn’t help anyone but the wealthy, and they need no help. Consumer excess can come from there as well, vs the pockets of people who do actual work.

ahupp

12 hours ago

The cost of shipping contributes to the cost of every product we export and import. Treating this as a purely zero-sum transfer between longshoreman and shippers is ignoring all the reasons this is interesting & important.

As a hypothetical example, if there was some new method of transport that bypassed ports entirely at 1/10th the cost, would you support an effort to scuttle it to support longshoreman?

This same issue played out with the introduction of the shipping container; if history had played out differently and we were still manually packing ships I don't think you'd choose that world over what we have today.

toomuchtodo

2 hours ago

Great comment, and I'm glad you brought this point up so we can deep dive. If you read the book "The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson," (Chapter 6: Union Disunion) [1] it covers the historical negotiation and agreement between the longshoreman unions and shippers when the shipping container improved efficiencies; they split the gains from the efficiency improvements knowing it was going to reduce the need for labor into the future.

If that was on offer today, I would have a different opinion, for sure. I would strongly support Automating All The Things. I think the grand bargain that was previously made when the world standardized on shipping containers was reasonable and fair. But that is not what is on offer. What is on offer is the Robber Barron equivalent of folks attempting to automate as much as possible to the detriment of labor for shareholder and management returns, and because of that, I hold the opinion that I do. With the decline in labor unions and lack of labor regulation in the US for the last several decades (since the Ronald Reagan era, broadly speaking), Capital has ground down Labor, and Labor needs to grind back to make up for lost time and ground [2] [3].

[1] https://press.princeton.edu/books/paperback/9780691170817/th...

[2] https://www.epi.org/productivity-pay-gap/

[3] https://www.epi.org/blog/growing-inequalities-reflecting-gro...

seizethecheese

12 hours ago

Automation helps everyone via lower consumer prices. It’s really basic economic theory that capital would not capture all the gains here.

dudisubekti

12 hours ago

If you live in neoliberal capitalist country, your wellbeing is tied to the profit of the private company that runs the infrastructure…

If they don’t find things profitable, then they would just not run said infrastructure, disrupting the lives of many people.

This is why strikes make people nervous.

JumpCrisscross

12 hours ago

> Labor is the source of all wealth and all culture

Of course it isn’t. To make this construct work in the modern world requires amortising past labour across future automation in a way that almost deifies the first work.

piva00

8 hours ago

How is that "of course not"? All wealth comes from labour, somewhere, somehow. To build automation requires labour, to create the machines (or the machines that create the machines), operate them, etc.

tw04

12 hours ago

Because the working class deserve a share of the wealth they generate and if they don’t get it, it’s a matter of when, not if society collapses?

There has been an unprecedented acceleration of the concentration of wealth to the billionaire class, and that’s fundamentally unsustainable. History has shown the end result is either a decrease in inequality naturally, through government intervention, or violence.

I prefer naturally (a strike and negotiation), I’d accept government intervention, but I fear a lot of people will take your jaded view of “why should they get more money when we can replace them with automation” and we’re going to eventually end up with violence when enough people can’t afford the basic necessities.

nkurz

12 hours ago

Upvoted because I like and agree with much of your answer, though I'd ask you not to assume my worldview just because I'm asking the question. Growing up, the richest relatives I had were union machinists. I appreciate the role of unions even if I'm not always on their side. I'm asking genuinely because I wonder what the specific pro-dockworker argument is here since I don't know much this particular situation.

My worry would be that by making possibly excessive demands that would further benefit themselves at the expense of the rest of the nation, they may accelerate the demise of their positions altogether. I'm not altogether against this (because I do think would benefit the rest of the nation in the medium term) but like you I also worry about the increased chance of societal collapse if inequality keeps increasing. I'd probably prefer the safer choice of two decently paid new jobs for new workers than one soon-to-be-phased out job at a higher rate. I'm asking so I can understand better the opposite preference.

rgbrenner

12 hours ago

To be clear, you're not a port worker.. correct? You're just an outsider looking in, making a blanket judgement about how easy other people's jobs are; and how easy they are to replace?

kortilla

12 hours ago

To be clear, the question was explicitly asking what makes these port workers special to demand this. If it’s just, “we want more money and have the collective power to hold the port hostage”, that’s fine. It’s just not spelled out anywhere what the justification is

johnny22

12 hours ago

any group of workers should be able to do this.

kortilla

8 hours ago

Sure, but they don’t deserve automatic support from the public for doing it. Unions striking and successfully driving up the cost of their labor can very easily be bad for consumers.

dylan604

12 hours ago

That's the beauty of being in a union. You don't have to be special to have the job. Having the job is the thing that is special. Scabs are always possible for any job. Even the NFL had scabs.

kortilla

8 hours ago

Nobody disputed that. The entire point was that if this is just a strike without any particular grievances, the public won’t support it much.

dylan604

an hour ago

"To be clear, the question was explicitly asking what makes these port workers special to demand this."

And I answered. The employees are not special in and of themselves. They can be replaced. That's what a scab is. Who cares what the public supports. They are not involved in this. What's the public going to do to show their lack of support?

People supported the strikes from the Writer's Guild and the Actor's Guild. They didn't want AI automation to replace their jobs. This union doesn't want a similar bit of automation to replace theirs.

To me, unions are no longer the thing they were when they were first created. From a non-union person looking in (and based on my one personal experience of going through a union vote), the people in favor of unionizing were unwilling to adapt to new technologies and feared losing their jobs or doing something they didn't want. To them, the union was a way to just say no to change because some jobs will be at stake. Seems like that's what's going on here too.

toomuchtodo

12 hours ago

This is a foreign concept to tech workers, who have been fed a religion that they are special. Surprise, you’re closer to a blue collar worker than a billionaire. Belief systems are rigid and die hard.

You too can organize for better pay and working arrangements collectively. Or, you can live and die by the at will arrangement and how lucky you are wrt comp. But don’t be sour when other people make better choices that empower themselves while you don’t.

kortilla

8 hours ago

There is zero evidence that forming a tech union would be successful and result in more pay compared to non-union workers. The first thing to go when people unionize is RSU based comp, which makes up 50+% of income for high income tech workers.

Forming a union is an antagonistic action against a corporation. You’re literally forming a cartel controlling one of their critical supplies (labor). There better be significant upside to burn that goodwill because all comp changes going forward are going to be shitty tooth and nail negotiations for salary bumps and RSUs will be kept for management only.

People at the big tech companies are looking to make life altering money and that comes through RSU accumulation and appreciation. That means being aligned with shareholders, which is the opposite of a union. The only place you might have success drumming up support for unions are mid to low tier tech companies where people make a low 6 figure salary and next to no equity.

user

3 hours ago

[deleted]

ars

12 hours ago

Going on strike to keep your job from being replaced by automation does not seem like a winning strategy. Not only does your job not need to exist, you actually want more money for doing something no one needs you to do?

If you want a payment for doing nothing of value, that's something government handles, not a private employer.

There's SO MUCH demand for labor right now, let's not have people do jobs that computers can do.

big-green-man

12 hours ago

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson is a book I cannot recommend enough. I never thought a book about shipping containers could be so engaging. It's one of those that will have your nose in it til you're done. It talks about the fight with unions in the face of container shipping among other things, and gives you a nice overview on the history of these port workers unions and the politics around them.

I'm personally in much agreement with you and am not sympathetic to unions generally speaking. It's one thing if a company needs you and you band together to get better pay, it's another to blackmail whole industries and even countries to keep paying you for something nobody needs you to do.

RGamma

3 hours ago

You're financially independent, right?

blackeyeblitzar

8 hours ago

A single union spans all these ports? This shouldn’t be allowed - we need antitrust laws to break up unions and promote a healthy amount of competition. Biden could prevent this strike by invoking his legal powers given this is critical infrastructure, but I doubt he will do that given it’s an election year.

user

an hour ago

[deleted]