Trump backs dockworkers in fight against automation. The move risks higher prices, experts say
President-elect Donald Trump this week voiced support for tens of thousands of unionized dockworkers in a dispute with major shipping companies.
Negotiations between workers and management are deadlocked over the companies’ plan for further automation of ports, which the union said would eliminate jobs.
“I’ve studied automation, and know just about everything there is to know about it,” Trump said Thursday in a post on Truth Social. “The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen.”
The vow of support for dockworkers aligns with Trump’s campaign promise to safeguard blue-collar workers threatened by global capitalism, depicting automation as an unwelcome change foisted on workers by foreign-owned shipping firms, some experts said.
Trump’s rejection of automation highlights a tension found in his economic policy, however, some experts added.
Like tariffs, the policy aims to protect a narrow set of workers at the possible expense of importers and consumers, who could suffer higher costs as a result of a missed opportunity to improve the supply chain, some experts said. While others defended Trump’s attempt to protect dockworkers from technological change.
The Trump transition team did not respond to ABC News' request for comment.
Here’s what to know about the labor dispute over automation at East and Gulf Coast docks, and what it says about how Trump may approach the economy in his second term.
Dockworkers and freight companies feud over automation
A strike in October at docks across the East and Gulf coasts threatened to upend the economy and drive up prices, but workers and management ended the stoppage with a tentative agreement after three days.
The deal includes a 62% wage increase over the life of the six-year contract, but the two sides have yet to finalize it due to a disagreement over plans for further automation.
The standoff centers on the potential installation of cranes that would facilitate the retrieval and storage of freight containers, said John McCown, a non-resident senior fellow at the Center for Maritime Strategy who closely tracks the shipping industry.
Cranes already help remove containers from a ship and place it in a nearby port terminal, but shipping companies have sought the use of additional automated cranes once goods have reached land, McCown said.
The cranes work like an old-fashioned juke box, he added. “You hit a number and it goes to pick a record and play a record,” McCown said, noting the cranes would similarly mechanize sorting and transport of containers.
The U.S. Maritime Alliance, or USMX, the organization representing shipping firms in negotiations, said on Thursday that such automation would improve efficiency and increase capacity. Those enhancements would benefit U.S. companies and consumers that depend on goods from abroad, the group added.
“We need modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity, and strengthen our supply chains,” USMX said in a statement.
The USMX did not immediately respond to ABC News' request for comment.
The plans have drawn rebuke from the International Longshoremen’s Association, or ILA, the union representing dockworkers. The union has pointed to massive profits enjoyed by the shipping firms during the pandemic, saying further automation would invest those gains in job-cutting machinery rather than increased compensation. Workers have also disputed the supposed productivity benefits of the technology.
“This isn’t about safety or productivity -- it’s about job elimination,” ILA President Dennis Daggett, said in a statement earlier this month. The union has proven that the automated cranes at issue “are not more productive than traditional equipment operated by human workers,” Daggett added.
In response to ABC News' request for comment, the ILA shared a statement from Daggett praising Trump.
"Throughout my career, I’ve never seen a politician -- let alone the President of the United States -- truly understand the importance of the work our members do every single day," Daggett said.
What could Trump’s approach to the standoff mean for his 2nd term?
In his social media post backing the workers and opposing port automation, Trump criticized foreign-owned shipping firms for what he described as penny pinching.
“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 said. “It is time to put AMERICA FIRST!”
The framework presents U.S. workers as victims of foreign companies, which he says aim to make use of America’s economic resources at the expense of its citizens. As such, Trump’s intervention in this case favors the ILA in its longstanding fight against automation, Peter Cole, a professor at Western Illinois University who studies the history of dockworkers, told ABC News.
“The ILA will really benefit if in fact Trump pushes employers to back off automation,” Cole said, noting that the explanation offered up by Trump reflects a larger political shift in the U.S. against unrestricted global trade.
“Presidents in both main parties have supported more manufacturing domestically,” Cole said.
However, Trump’s opposition to automation risks imposing higher costs on consumers and even some domestic manufacturers, since advances in productivity would help lower supply costs otherwise passed along to buyers at the end of the chain, some experts said.
Trump mistakenly claims that foreign shipping companies would bear the cost of forgone automation, just as he inaccurately says that foreign countries would pay the cost of tariffs, David Autor, a professor at the Massachusetts Institute of Technology who specializes in technological change and the labor force, told ABC News.
“The assertion that raising tariffs at our ports will force foreigners to cover these costs is beyond naive,” Autor said. “It’s simply false.
Autor said the hardship that dockworkers would face if automation were to advance and put many of them out of work. “It will not be good for the livelihoods of longshoremen and we should not pretend otherwise,” Autor said, adding that the workers should receive compensation or other protections under such circumstances.
