With the full staff of workers showing up, port facility owners withdrew a threat to lock out International Longshore and Warehouse Union workers from the Los Angeles and Long Beach terminals tomorrow morning. The owners had claimed the union was engaging in a work slowdown, delaying the movement of goods through Long Beach in a move to gain leverage in contract talks.

Observers said a lockout at even two facilities would likely have led to lockouts at other major ports along the entire West Coast.

But the apparent conciliatory gestures by both sides today raised hopes that the Pacific Maritime Association of terminal owners and the ILWU would work out a contract without resorting to an extended slowdown or strike that, if prolonged, could cripple Hawai'i's economy and lead to commodity shortages.

"Something could still happen, but this is good news," said Jeff Hull, spokesman for Matson Navigation Co., one of two major shipping companies that runs container boats between Honolulu and Mainland ports.

The union and terminal owners have been locked in increasingly tense contract negotiations since the previous contract expired this summer.

The carriers group and the union, which represents about 10,500 workers at ports in California, Oregon and Washington, were reportedly set to resume contract negotiations today.

Talks, which had been extended on a day-by-day basis, have bogged down in differences over the owners' plans to upgrade shipment tracking and logistical technologies. The union wants assurances that all new jobs created by the upgrades will be reserved for union workers.

The union decided in early September not to extend its contract, which set the stage for legal work slowdowns or a strike.

The shipping company association, which represents more than 80 shipping and terminal operators, has said it would not tolerate work slowdowns. But association President Joe Miniace said the apparent resumption of normal activity in Long Beach today is "a positive sign."

"I am hopeful this signals that the ILWU and PMA will be able to work together," Miniace said yesterday in a statement.

The union has denied instigating a work slowdown this week, saying the delays in Long Beach were caused by a shortage of available workers.

ILWU spokesman Steve Stallone could not be reached for comment today.

Hawai'i business and political leaders yesterday said they are still braced for a slowdown or strike. Although many have stocked up on several weeks of inventory, some are unnerved by the recent tension on the West Coast.

"I've been getting calls already from people wanting to buy stuff, but I'm telling people to just wait and see what happens," said Kelvin Shigemura, vice president for food distributor Armstrong Produce. "We're telling our shippers to stand by. If there's a lockout, there's not much we can do; until then, it's business as usual."

A strike could also lead to work actions by the Hawai'i branch of the ILWU, now in separate contract negotiations with Honolulu terminal operators.

Gov. Ben Cayetano said he was concerned that the union could be dragged into a strike that it doesn't appear to want.

Cayetano today said he has talked with Local 142 President Eusebio Lapenia and that it appears local ILWU members do not want to strike because they recognize it would have a significant impact on the economy.

"But it's the ... national branch of the union that's going to make the decision," Cayetano said. "If the West Coast goes on strike, it's only a matter of time before the union here has to follow suit. So it's a serious situation.

"I think that we probably have enough stock in place in different kinds of categories to last us for awhile, but if there's a strike and it's a prolonged strike, then there's no doubt it's going to hurt Hawai'i."

Cayetano said the federal government should do all it can to push both sides to continue discussions.

"At some point it may be appropriate for the president to take a look at it, but I think that as much as possible the president (and) governors should stay out of it and let the parties work it out. But when the community begins to suffer adversely then I think that something has to be done."

Lapenia could not be reached for comment today as Local 142 continued to negotiate with shipping company representatives.

Economists said a dockworker strike would have uncertain effects on the state economy depending on how long the action lasts and how deep island businesses have stocked their inventories.

"If it's a short-term action, the impact is probably minimal," said Pearl Imada Iboshi, chief economic researcher at the state Department of Business, Economic Development and Tourism. "If it's longer term, things may cost a little more because they'll be shipped by air. For big things like cars, that's more difficult, but generally, dealers have enough stock that it will take a long time before they run out.

"Generally, we seem well-prepared."