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The Honolulu Advertiser
Posted on: Sunday, June 28, 2009

Matson strike is over


By Michael Tsai
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

The Matson ship Manoa passed by Ala Moana Beach Park yesterday after arriving from Oakland, Calif.

REBECCA BREYER | The Honolulu Advertiser

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MATSON BY THE NUMBERS

3

Shipments per week to Hawaii

2/3

Proportion of all containerized freight to Hawaii carried by Matson

80

Percentage of all goods sold in Hawaii that arrive via container ship

4

Years proposed in tentative new contract agreement between Matson and three of its unions

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Matson Navigation Co. yesterday reached a tentative agreement with three unions that represent its captains and crewmembers, ending a short-lived strike in Seattle that threatened to disrupt Hawai'i's critical shipping lifeline.

The agreement came late yesterday afternoon in San Francisco, several hours after one of the unions, the American Radio Association, went on strike in Seattle, temporarily stranding a Matson container ship scheduled to carry goods to Honolulu via Oakland, Calif.

Terms of the four-year deal were not disclosed. The agreement still must be ratified by members of the ARA, International Organization of Masters, Mates & Pilots, and the Marine Engineers' Beneficial Association, said Matson spokesman Jeff Hull. The three were the only unions involved in the contract talks.

If the new contract is accepted, Hawai'i will once again avert a potentially devastating disruption to the flow of offshore goods that make up 80 percent of all products sold here. Matson carries two-thirds of the containerized freight to Hawai'i.

Yesterday's brief strike affected the Matson ship SS Maui, which was scheduled to leave Seattle for Oakland yesterday and then continue on to Honolulu, arriving Tuesday night.

While only one member of the SS Maui is a member of the ARA, longshoremen represented by the ILWU refused to load the ship in a show of unity.

The ship remained docked in Seattle as negotiations between Matson, the ARA and two other unions — the Masters, Mates & Pilots and the Marine Engineers' association — continued through the day.

Following the tentative settlement, Hull said longshoremen and crew were expected to return to work to get the Maui on its way to Oakland.

Despite the strike, both sides maintained that they were positive an agreement would be reached soon.

Charles Khim, attorney for the MM&P, said the ARA's decision to return to the bargaining table yesterday was a strong indication that talks were headed in the right direction.

"Even though they are still on strike, that's a very positive development," Khim said before the agreement was reached. "What they've done is very clearly illustrated the gravity of the situation."

The unions involved in the talks represent crewmembers, including captains, on Matson Navigation Co.'s trans-Pacific cargo ships.

Hull said Matson's ships are typically manned by 21 people represented by six different unions.

Matson delivers three shipments per week to Hawai'i.

The Matson vessel Manoa arrived in Honolulu from Oakland yesterday with a return trip scheduled for tonight. It is not known whether local longshoremen honored the strike by refusing to load or unload either of the ships.

Another Matson ship, the Maunalei, is scheduled to arrive from Los Angeles this afternoon.

Unlike in 1999, when the threat of a dock strike in Honolulu triggered a massive run on rice, toilet paper and other bulk items at local stores, Hawai'i consumers seemed to take a wait-and-see approach to yesterday's breaking news.

Nofo Lilo, executive manager for Target in Kapolei, said his store experienced "higher-than-normal" sales of toilet paper when news of the impasse was first reported last week but sales returned to their regular levels after a day or so.

Managers at Foodland, Times and Longs Drugs stores in Honolulu also reported normal sales of all goods.

The tentative agreement also averted what Hawai'i Pacific University travel industry management professor Jerry Agrusa said could have been yet another blow to Hawai'i's ailing tourism industry.

"Bad news travels fast, and good news doesn't travel," Agrusa said. "People know that Hawai'i is isolated and that we have to ship in most of our goods. If there was a huge run on toilet paper and that story was picked up nationally and internationally, that image would stick with people.

"It's all about perception and people already associate Hawai'i with being expensive. You don't want them thinking that there's not going to be any toilet paper when they check into their $400-a-night hotel room."