Kevin O'Leary Claims There's 'Zero Evidence' That Automation At U.S. Ports Impacts Worker Wages – Why He Thinks It Won't Hurt At All

Kevin O’Leary recently stirred the pot, dismissing concerns that automation in U.S. ports would harm worker wages. As East and Gulf Coast ports started buzzing again, O’Leary took the opportunity to address what he saw as the real issue: inefficiency. 

He pointed out that U.S. ports, especially on the East Coast, are lagging behind international players like Singapore in terms of productivity.

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"These ports are outdated," O’Leary explained during his appearance on "Varney & Co.," adding, "When compared to highly automated hubs in Asia, we're not even in the same ballpark. And that's just bad for business." His solution? Automation.

According to ABC News, the recent labor dispute between U.S. dockworkers and employers ended with a tentative wage deal, giving workers a substantial 62% pay hike. 

However, the International Longshoremen's Association (ILA) union remains adamant against automation. In a firm statement, the ILA said they would not accept any technology that risks jobs or undermines historical work roles, ensuring that job security was a top priority.

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But O’Leary isn’t buying that argument. "Look, there's been no real evidence that automation reduces wages," he said. "If anything, wages for those skilled in operating new tech could actually increase." 

According to studies cited by O’Leary, automation doesn't displace workers as much as it shifts the kind of work they do. He suggests that as ports become more tech-savvy, jobs may evolve to more specialized roles, potentially leading to wage increases rather than cuts.

Backing up O’Leary's perspective, Eric Hoplin, CEO of the National Association of Wholesaler-Distributors (NAW), pointed out that major global ports like Rotterdam, Shanghai and Singapore have embraced automation long ago. 

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“We're decades behind," he told "Mornings With Maria," emphasizing that resisting technological change would leave the U.S. port industry stuck in the past. According to Hoplin, while union demands for protection against automation are understandable, they may be unrealistic in today's fast-moving, tech-driven world.

While controversial, automation isn't necessarily the enemy of workers. According to the McKinsey Global Institute, automation across various industries has enhanced productivity and sometimes raises wages in specialized sectors. 

According to Oxford Economics and as cited by JPMorgan, analysis of the recent strike estimated that disruptions to U.S. port operations could cost the economy between $3.8 billion and $4.5 billion per day, highlighting the critical need for efficiency at these ports.

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However, not everyone agrees with O’Leary's optimism. Some labor experts argue that while automation might increase productivity, the gains often favor companies over workers. As ports become more automated, traditional jobs may disappear, leaving workers without the skills to transition to new roles. 

According to a recent report by the International Labor Organization, automation in certain sectors has historically led to job cuts, particularly among low-skilled workers, underscoring that not all effects of automation are positive.

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