Local impact likely small in dockworker lockout

By Dan Nakaso and Kelly Yamanouchi
Advertiser Staff Writers

The association that represents more than 80 shipping lines and terminal operators locked out longshore workers at all Pacific ports last night through tomorrow morning in a dramatic move that sent ripples of anxiety through major parts of Hawai'i's economy yesterday.

A security guard outside a port facility in Oakland puts up a sign closing the gate to further truck traffic yesterday. Associated Press

Several Hawai'i ships were affected by the shutdown, but most businesses — which have been stocking up on extra inventory for several weeks as tensions have increased in the West Coast dock talks — said yesterday that the 36-hour shutdown should have little noticeable effect in the Islands.

Hawai'i dockworkers, who operate on a separate contract with the shipping companies, said yesterday that work continued normally at Hawai'i ports. A union representative said local dockworkers plan to work normally through the weekend.

The board members of the Pacific Maritime Association yesterday morning unanimously voted to lock out members of the International Longshore & Warehouse Union at all West Coast ports beginning at 6 p.m. Pacific Daylight Time after trading accusations and counter-accusations during the past few days.

The association accused the ILWU of work slowdowns in Oakland, Seattle and Tacoma, Wash. The union said that dockworkers have been subjected to a dangerous increase in workload for several months and have had five deaths in the past six months.

Calling it a "cooling-off period," the association yesterday announced the shutdown, saying it would reopen the port terminals tomorrow at 8 a.m. PDT.

"We will not tolerate the union's calculated work actions and have exhausted every option to keep peace on the waterfront," said Joe Miniace, the association's president and chief executive. "The union has flat out refused to keep peace. They have rejected the option of extending the contract. They have rejected third-party mediation. They have rejected arbitration. Rather, they have engaged in a widespread job action that has brought the West Coast waterfront to its knees, and by extension, this union is causing harm to the national and international economy."

Union leaders said Miniace walked out of yesterday's negotiations after he "launched into a tirade."

The association's "slanderous allegations of slowdowns during the biggest speedup in ILWU history that coincides with a record number of on-the-job deaths is literally adding insult to injury and making any progress toward a contract more difficult," said ILWU international president James Spinosa. "Still the ILWU is prepared to go back to the table and seek a negotiated settlement."

The union represents 10,500 workers at all 29 major Pacific ports. The shutdown of the docks will have an immediate affect on the nation's economy, as the

West Coast ports handle a significant amount of the nation's imports and exports.

For Hawai'i, officials with CSX Lines, one of the major shipping companies to the Islands, said last night that they would have no immediate comment on the effects of the lockout.

But Matson Navigation Co. officials said two of their eight ships were directly affected — the R.J. Pfeiffer, which was scheduled to leave Los Angeles for Hawai'i today; and the Kaua'i, which was scheduled to arrive in Seattle last night.

The lockout means the ships won't be unloaded for at least another day or two, said Jim Andrasick, Matson's president and chief executive.

A third Matson ship, the Lihue, was scheduled to leave Oakland just before the 6 p.m. lockout.

"Anybody who has freight going into West Coast terminals clearly can expect delays of one to two days," Andrasick said.

Matson's Chief Gadao set sail from Honolulu yesterday about 5:30 p.m. for the approximately five-day voyage to Los Angeles, but workers still off-loaded cattle during the day as a precaution against further delays on the West Coast.

"We had eight containers with about 450 head or so and now we are taking them back to the Big Island," said Shawn Aguiar, American Pacific Inc's general manager. "Matson will cover the interisland shipping costs, but we will have to absorb the trucking, feeding and everything else."

Two other cattle companies that have livestock aboard the Chief Gadao were making arrangements to hold their cattle at sites around O'ahu until the docks open again.

Besides operating its own cattle ranch on the Big Island, American Pacific buys cattle from up to 300 other ranchers statewide for shipment to the Mainland. Aguiar estimated it will be at least two weeks before he can make another shipment.

Armstrong Produce Ltd., Hawai'i's biggest produce distributor, said it has five containers of fruits and vegetables aboard the R.J. Pfeiffer that are destined for Hawai'i hotels, restaurants, commissaries and chain stores. The total value is estimated at $75,000 to $100,000.

If dock work resumes tomorrow, the cargo should arrive in time for business next weekend after the usual 5 1/2-day ocean journey, said Mark Teruya, Armstrong's president.

"If the Pfeiffer gets delayed further," he said, "people might have to fly in product for Friday and Saturday sales. ... If it's delayed for a number of days, we'll probably have to have the shipper take it back and we'll have to reorder. We have to work with the freshest product available."

Y Hata & Co. Ltd. has goods arriving on "every single ship that comes in to Hawai'i," said Glenn Lum, the company's director of administration, who like others yesterday said he was concerned by the latest disruption but not overly worried.

"We've increased our inventory floor stock in anticipation there might be some disruption," he said. "I can't imagine there's not a distributor out there that's not doing the same thing."

The state imports about $10 billion of products per year — $1 billion of it food. Imported food accounts for about 65 percent of total food consumption, "so it's pretty significant," said state economist Pearl Imada Iboshi.

But, Imada Iboshi said, "I think that we're well-prepared for something happening unless it really extends for a long time."

Many hotel operators said yesterday that they're prepared for the weekend, but further delays could create problems.

"There's probably not an immediate impact, but it's certainly not something you want to see continue," said Murray Towill, president of the Hawaii Hotel Association.

Kelvin Bloom, president of Aston Hotels & Resorts, said he does not have any concerns about a shutdown if it's just for the weekend.

Restaurants may have the most concerns because of their dependence on fresh food shipments. But Halekulani spokeswoman Joyce Matsumoto said an increasing reliance on local suppliers of perishables helps.

"I don't think we're as bad off as we were years and years ago when we weren't working with the local farmers," Matsumoto said.

Zippy's restaurants have increased their local inventory and are keeping a large inventory of crucial items, such as beans for Zippy's chili.

Windward Ford and Windward Volkswagen/Mazda depends on weekly shipments of cars and has a 60 to 70 day supply on a regular basis. But, said Mark Caliri, vice president and general manager, "It wouldn't take that long to be a major issue. It is a concern."

Advertiser staff writer Frank Cho contributed to this report.