By Nick Lung    Photo：CANVA

Container longshore workers unions at U.S. East Coast and Gulf Coast ports have stopped negotiating with employers. The union accused some shipping companies of starting to use automated equipment in some ports in an attempt to replace workers.

The impact of automation on dock workers is multiple and profound. As ports and terminals gradually introduce automation technology, workers' working environment, work content and employment prospects have changed significantly. These changes have both positive and negative impacts, as follows:

1. Fewer job opportunities

Automated equipment, such as driverless freight trucks, autonomous cranes, robotic arms, etc., have replaced many traditional dockworker roles, especially stevedores and operators. This has led to the gradual disappearance of many low-skilled jobs and increased workers' risk of unemployment. Some ports have significantly reduced their staffing levels due to full automation, which has had a direct impact on the labor groups who rely on terminal work.

2. Need for retraining and skill upgrading

While automation technology reduces demand for some traditional jobs, it also creates new high-tech job opportunities. For example, the operation and maintenance of automation equipment requires roles such as technical experts, software engineers, and data analysts. As a result, workers must be retrained to learn how to operate, maintain and manage automated systems. This means workers will need to transition from traditional manual labor to more technical positions.

3. Wage polarization

The introduction of automation technology may lead to a polarization in dockworker pay levels. Low-skilled workers may face reduced wages or even unemployment due to reduced job opportunities. Workers with skills in automation systems, maintenance and technical management have the opportunity to earn higher wages. As a result, the wage structure may be tilted toward highly skilled workers.

4. Changes in the nature of work

Automation has drastically reduced the need for workers to perform strenuous physical labor. This makes the nature of work more technical and managerial. Many workers no longer need to perform high-intensity operations outdoors, but instead turn to monitoring centers or control rooms to manage the operation of automated systems through monitoring equipment. This improves the safety and comfort of the working environment to a certain extent, but it also requires workers to have higher technical skills.

5. Working hours and flexibility

Automated systems can operate 24 hours a day without being restricted by human schedules, so some workers may experience more flexible but less regular work schedules. Additionally, for those workers tasked with monitoring and managing automated systems, their work pace can become more stressful due to the need to ensure machines operate efficiently and without errors.

6. Changes in labor relations

As automation spreads, the role of unions among longshoremen may also change. As the number of workers decreases due to the introduction of automation equipment, the power of collective bargaining may be weakened. Unions may need to recalibrate their strategy and shift their focus from traditional worker protections to promoting technical retraining, safeguarding the rights of high-skilled workers, and ensuring a fair transition to automation.

7. Psychological stress and adaptation issues

Adapting to the changes brought about by automation can be challenging for some workers, especially those who have long held traditionally manual jobs. Faced with the uncertainty brought about by automation technology, many workers may experience increased anxiety and stress, worry about job security, or difficulty learning new skills. This psychological stress can also have a negative impact on workers’ health and quality of life.

Overall, the impact of automation on dock workers has two sides. On the one hand, it has cut traditional jobs, causing some workers to lose their jobs or see their incomes drop; on the other hand, it has also created new job opportunities with more skills and higher wages, and improved the working environment and safety conditions of some workers. The key to the future is how to assist workers in skill transformation and ensure that the impact of automation on dock workers is controllable and positive.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.