Issue 353, July 1, 2002
As reported by the Journal of Commerce today at 1:48 p.m. ET, Monday, July 1, 2002 Deadline today for West Coast talks - by Bill Mongelluzzo

Waterfront employers and the International Longshore and Warehouse Union are scheduled to resume negotiations at 3 p.m. Monday just hours before the current three-year contract at West Coast ports is set to expire.

The ILWU indicated it has no intention of striking when the contract expires. Also, the Pacific Maritime Association, which represents shipping lines and terminal operators, said it will not lock out the union unless longshoremen engage in crippling work slowdowns as they did during contract negotiations in 1996 and 1999.

ILWU spokesman Steve Stallone said a strike would require a vote by the rank and file, and there are no plans at this time to vote on the issue. "We haven't even designed the ballot," he said.

Negotiations continued through Saturday, with the PMA presenting the union with a revised offer on maintenance of health and welfare benefits, a wage increase, pension increase and language on the introduction of productivity-enhancing technology.

"We made a substantial proposal on Saturday. We feel it was fair," said Jack Suite, the PMA's contract administrator.

The ILWU rejected the offer. The union stated it will be ready to provide employers with its counter offer at Monday's talks.

It's unlikely the two sides will reach an agreement by 5 p.m. Based on the most recent negotiations, talks could drag on for two to three more weeks. The ILWU has a contract ratification caucus scheduled for July 22, so there is little pressure right now to rush into a settlement.

While there have been no indications of a slowdown, traditionally, traffic slows during the first week of July even in non-contract years. Many longshoremen take off work for July 4 and also July 5, known as "Bloody Thursday," which commemorates union workers killed during a general strike on the West Coast in 1934 and the founding of the ILWU.

West Coast ports announced especially large cargo volumes in May, and when the June figures are tabulated, they are also expected to be high. Some port and shipping executives are predicting that July could even be a busy month, based on advance bookings. This could indicate that West Coast ports are in store for a strong peak shipping season this summer and fall, adding urgency for a rapid contract settlement.

Bill Mongelluzzo can be reached at bomngelluzzo@joc.com

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.