Trump Goes Soft on the Longshoremen’s Union

I haven’t mentioned this to anyone, but President Trump looks different to me in photos lately. I can’t explain it, but his resting facial expressions look more deliberative, contemplative and, dare I say it, compassionate.

That’s why I wasn’t entirely surprised when I read this post on Truth Social:

Huh?

This doesn’t sound like the Trump I know at all. As a world-class developer, would Trump have ignored promising building construction technology that could enhance productivity and bring down costs just because some of his tradespeople would have lost their jobs?

I doubt it. So, what gives?

The History of the Longshoremen’s Union

The Longshoremen’s union has a sordid history of corruption and mob influence that dates back to the 1940s. Among the most notorious characters included brothers Albert and Tough Tony Anastasio, who controlled six unions in Brooklyn. They would break knuckles if you stepped out of line.

The situation was so bad that the New York State Crime Commission held public corruption hearings related to the docks from December 1952 to March 1953. Meanwhile, a subcommittee of the U.S. Senate Interstate and Foreign Commerce Committee held hearings on the violence at the New York-New Jersey waterfront.

If you think the corruption was resolved in the intervening years, you would be mistaken. In fact, the Waterfront Commission of New York Harbor recently released a batch of reports that spanned 11 years. The documents outline the decades of exploitation and mob influence at the ports and conclude that discriminatory hiring practices persist. Black workers are clustered in one local, ILA Local 1233 in Newark, New Jersey. The best positions in the union are awarded exclusively to white males who are members of ILA Local 1. By comparison, 85% of ILA 1’s members are white, while 86% of ILA 1233 are black. I guess segregation is alive and well in 2024 at the docks.

The reports also revealed that between 2019-2020, 590 people collected massive salaries totaling $147 million, all of which was outside the scope of the collective bargaining agreement. Apparently, 20 union members were paid more than $450,000, but they never showed up for work.

The Impact of Covid on Shipping

In 2021, and then again in 2022, the supply chain was disrupted when significant numbers of longshoremen contracted COVID. In 2021, almost 700 dockworkers missed significant time at the ports of Los Angeles and Long Beach. This added to the disruption at the ports and further stressed the U.S. supply chain to its breaking point. Containers backed up with no one on the docks to unload them. At one-point 1800 workers were missing from the job.

The situation was further exacerbated in 2022 when the Omicron variant struck, and over 800 longshoremen contracted the disease and missed work in LA and Long Beach. Over 100 ships were backlogged and remained unable to unload for weeks.

The marooned cargo ships were filled with basic household goods and electronics, and they were plundered by thieves for as much as $68 million. This contributed to the scarcity of product on merchant’s shelves, including food. Shortages of necessities added to the anxiety of an already anxious public. While no one blames the longshoremen for contracting Covid, and the bottlenecks at the ports were impacted by other factors, we became acutely aware of how fragile our supply chain is and how a system that relies on humans for offloading cargo can be closed down in an instant.

Strikes

Throughout its history, the longshoremen’s union has not been afraid to use its leverage over the American public to negotiate fat, sweetheart deals. When they have decided to strike, the impact on the American economy has been profound.

* 1934 West Coast Waterfront Strike – An 83-day strike that led to union recognition, more pay and better conditions.

* 1948 Strike – A 95-day strike over hiring practices, which solidified the union’s strength.

* 1971-1972 Strike – A 130-day strike over automation and containerization impacts on workers.

* 2002 Lockout (not a strike) – A significant 10-day lockout by employers over contract disputes is often associated with labor strife on the docks.

* 2014-2015 Port Slowdowns – A period of slowed productivity during contract negotiations, though not an official strike.

Most recently, the longshoremen called for a strike in October that affected East and Gulf Coast ports. It was timed perfectly for the 2024 election. The ILA went on strike for exactly three days before the United States Maritime Alliance caved in to the union’s demands. The ILA received a wage increase of $4/hour, and will receive additional $4/hour raises for the next six years. Over that period, union workers will receive a 62% raise.

It is bad business to allow the American economy to be held hostage in this manner. Joe Biden, with the presidential election looming, would have had no choice but to intervene on behalf of the union if the strike wasn’t settled quickly. There is nothing that will motivate politicians and companies to give in to outrageous union demands more than the prospect of empty grocery store shelves.

The ILA has leverage, and they know it.

Now They Want Restrictions on Automation

The good news for the American consumer is that ports are the perfect application for high-tech automation. Targeted equipment controlled by AI creates a perfect marriage to tackle the deficiencies in the human-operated systems. Already, automation has been integrated into the logistics process at many ports, including RTGs, straddle carriers, port trucks, and even ship-to-shore (STS) cranes to a degree.

The benefits of automation are obvious. An AI algorithm doesn’t need to sleep, will never get sick, and won’t demand raises. A completely automated dock would not be shut down due to illness, and unless the AI becomes conscious, it will never go on strike. While there are hurdles to overcome, particularly in the area of unexpected deviations, the continued advancements are slowly making the ROI equation swing in favor of the automation equipment manufacturers.

That’s why the longshoreman’s union is terrified and wants to do everything possible to prohibit port companies from adopting current and future automation systems. In fact, the primary motivation behind Trump’s meeting with Harold and Dennis Daggett from the ILA was to address the unions’ concerns and avoid a looming strike. In essence, the union sees the writing on the wall, and as they have done in the past, they are threatening to leave the grocery store shelves bare in order to get their way. It is absurd to think that an industry improvement that would lower costs, shorten delivery times and provide the American people with a reliable supply chain even in times of crisis is being thwarted by the selfish self-interests of the union.

This is not a good look for Trump. Comparisons can be drawn to Ronald Reagan’s showdown with the air traffic controllers in 1981. Instead of capitulating to unfair demands, Reagan fired them all. Over 13,000 union workers were instantly relieved of their duties and lost their high-paying jobs. Yes, there was backlash, and over 7,000 flights were canceled, but shortly thereafter, the FAA started hiring and training replacements, and by the end of the year, the air traffic controllers union was decertified.

And a legend was born.

I hope President Trump rethinks this decision to support the longshoreman’s union. It is making him look weak in the face of a bully. It would be better to rally the American people by explaining exactly how unfair the union’s demands really are. If the longshoremen decide to strike, there might be short-term pain, but the long-term gain would be well worth it.