Dockworker talks break down on West Coast

By Justin Pritchard
Associated Press

OAKLAND, Calif. — West Coast ports marked Labor Day by bracing for labor disruptions that could come this week after contract talks broke down between shipping lines and the dockworkers’ union.

The latest contract extension covering the dockworkers at 29 major West Coast ports who handle the booming Pacific Rim trade expired at 5 p.m. yesterday.

With no contract, the 10,500 members of the International Longshore and Warehouse Union could stage work slowdowns. If they do, the shipping lines say they will lock out the dockworkers.

The ports handle more than $300 billion in trade annually, and a work stoppage would ripple through an already fragile American economy. Though the contract expired July 1, both sides had kept goods flowing with short-term extensions.

Hawai‘i economist and Hawaii Pacific University economics professor Leroy Laney observed today that a West Coast work stoppage could cause bottlenecks in Hawai‘i’s economy.

A short stoppage wouldn’t have much effect, Laney said, but he cautioned that a longer stoppage would have a disproportionaly greater effect on Hawai‘i’s economy.

The potential labor disruption on the docks is not coming at a good time, Laney said, because Hawai‘i’s economic recovery is so fragile. While hotel occupancy is low, Laney observed, relatively low interest rates have helped other sectors of the economy, such as construction. But if there were to be a work stoppage on the docks it would have a broad impact on Hawai‘i’s economy, he said.

Shippers have begun taking precautions in the event of disruptions, according to spokesmen for Hawai‘i’s two major shipping firms, Matson Navigation Co. and CSX Lines.

A union spokesman, Steve Stallone, said that while no slowdown had been scheduled, “we are completely free to take any job action that is legal.”

The lead negotiator for the Pacific Maritime Association said yesterday he expects that slowdowns could begin soon after Labor Day, which was a holiday for the dockworkers.

“The union just fired the first shot,” said Joseph Miniace, the association’s president. “I think this could be a turning point in negotiations.”

He thought dockworkers would beginning slowing down the pace of their work to pressure the shipping lines starting tomorrow. If that happens, Miniace said, shipping lines would give a three-day warning period — and if there were still slowdowns by week’s end, shipping lines will keep their promise of a lock out.

Hawai'i negotiations to restart

Talks in Hawai‘i are scheduled to resume next week, Local 142 president Bo Lapenia said last night at the Labor in Concert celebration at the Waikiki Shell. Those talks are likely to focus on work issues rather than pay or benefits, he said, because the local here has traditionally modeled its demands on contract gains obtained by the Mainland.

“There is always hope,” Lapenia said as he read a news report about the negotiations breakdown. “But it seems that positions have hardened.”

A work slowdown on the West Coast would affect the flow of goods into Hawai‘i, Lapenia said, and that would affect the availability of work for Hawai‘i’s union members.
“I guess we’ll have to put our heads together with management,” he said. “See what we can do.”

Lapenia said he hadn’t talked to union officials at the international headquarters since Thursday, when plans were to continue negotiating into the weekend. He said he didn’t yet know what had caused the West Coast hang-up or what actions were planned to correct it.

Whatever happens, Hawai‘i longshore and warehouse workers will support their union brothers, he said.

“I’m not saying we’re going to go on strike, but naturally we’ll have to support them,” Lapenia said. “Whatever efforts are needed, we’ll support them.”

The sticking points are arbitration, new technology that could costs jobs and health benefits.

On average, a full-time longshoreman earned $80,000 last year and a full-time foreman averaged $167,000, according to maritime association records.

Staff writer Karen Blakeman contributed to this report.