Issue 370, October 7, 2002
The talks over the weekend between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), under the supervision of a federal mediator, collapsed last night at 11:15 PDT, with the mediator suspending the negotiations after the ILWU rejected the last PMA proposal.

This morning at 11:00 a.m. EDT, speaking for the Bush Administration, United States Secretary of Labor, Elaine Chao, announced that the government was invoking the Taft-Hartley Act in order to get the parties back to work. Under provisions of this law, the President first must sign an Executive Order creating a Board of Inquiry that must assess and report on the situation. This board, composed of three people (former Tennessee Senator William Brock, and two law professors with expertise in labor disputes), must report back to the President tomorrow. Upon receipt of that report, the President may direct the Attorney General to seek an injunction to end the work stoppage. If the court issues an injunction, the parties will be required to resume normal operations (no slowdowns allowed) at the ports for 80 days and must work with the Federal Mediation and Conciliation Service to resolve the dispute.

If and when work is resumed at the ports, the time it will take to clear up the backlog is anybody's guess. But, this will NOT mean that the dispute will be settled, as the situation could revert back to the current standstill 80 days from now. In the very least, however, it will buy time for both parties to start over again, and the shipping community will be able to function during this very important, peak shipping season.

We will keep you advised of any new developments as they arise.

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.