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Knowles seeks exemption for Alaska-bound cargo

Posted: Tuesday, October 01, 2002

SAN FRANCISCO (AP) -- Cargo ships lay at anchor offshore, waiting to be unloaded, and trucks with fresh produce lined up outside West Coast ports Monday after dockworkers were locked out in a dispute that could cost the U.S. economy $1 billion a day.

West Coast shipping lines said they will keep the ports closed until the longshoremen agree to extend their expired contract. But the 10,500-member union said it will not budge until the lockout is ended.

The Bush administration said that it is concerned about the effect on the struggling U.S. economy but that it has no immediate plans to break the impasse by declaring a national emergency.

Meantime, Alaska Gov. Tony Knowles has asked that Alaska-bound cargo be exempted from the lockout because Alaska is uniquely dependent on shipping. Two-thirds of all freight bound for Alaska passes through the Port of Tacoma.

''Almost every item needed to support commerce and the military in Alaska is included in these shipments,'' Knowles said Monday in a letter to Joseph Miniace, the executive director of the Pacific Maritime Association.

Knowles' spokesman Bob King said the state has also been in contact with shippers and with the longshoremen's union.

''We received assurances from the longshoremen that they would load Alaska-bound cargo ships if they were allowed to by PMA members,'' King said.

The U.S. economy would lose $4.7 billion in wages and revenue during a five-day shutdown, according to a study conducted for the Pacific Maritime Association, which represents shipping lines and sea terminal operators. A 10-day shutdown could cost $19.4 billion as economic problems snowball.

''It's just massive,'' said John Martin, president of Martin Associates, the Lancaster, Pa., economic consulting firm that conducted the study.

The bulk of the nation's imports from China and Japan come through the ports of Long Beach and Los Angeles, the nation's busiest. The labor crisis comes as importers scramble to bring in merchandise for the Christmas shopping season.

Representatives of the shipping lines and dockworkers planned to meet on Monday afternoon. The shipping lines have also agreed to meet with a federal mediator Thursday in Washington, D.C., but the union said it was leaning against such a move.

A frail labor peace between the shipping lines and the longshoremen collapsed Sunday when the dockworkers were ordered off their jobs indefinitely at all 29 of the nation's major West Coast ports.

The two sides are at odds over pensions and other benefits, as well as cargo-handling technology that the union fears would wipe out jobs.

West Coast ports handled more than $300 billion in cargo over the past year. Major imports include industrial machinery, furniture, clothing, toys, computers, automotive goods and electronics. The biggest exports include meat and poultry, industrial equipment, animal feed, automotive parts, chemicals and fruit and vegetables.

Over the weekend, about 30 ships waiting to be unloaded dropped anchor outside the ports of Los Angeles, Oakland, Seattle and Tacoma, Wash., according to the Pacific Maritime Association. Seventy other vessels already in port waited to loaded or unloaded.

Economists warned that a drawn-out work stoppage will ripple through the U.S. economy. Stores will not have the merchandise they need. Produce could rot on the docks. Assembly lines may come to a halt for lack of parts.

Hawaii relies on shipping for about 90 percent of its goods.

For truckers such as Salvador Nunez, the effect was more immediate. He drove to the Port of Los Angeles from a small town near the Mexican border with a load of alfalfa sprouts and hay. Unable to unload, he waited several hours before turning around for the six-hour ride home.

Nunez was out $125 in transportation costs and could not collect his usual $400 for the load. If the work stoppage goes on for more than a week, ''it will be too long,'' said Nunez, who supports a wife and two children. ''I'll be out of money.''

Miniace ordered the lockout Sunday and accused the union of disrupting work by understaffing operations and dispatching workers not skilled for specific jobs. He demanded the dockworkers agree to extend their contract.

Jim Spinosa, president and chief negotiator for the International Longshore and Warehouse Union, said: ''The ILWU will not be intimidated. We will not extend the contract.''

The last time an economic emergency was declared and the U.S. government intervened in a work stoppage under the Taft-Hartley Act was 1978, when President Carter unsuccessfully tried to end a national coal strike. No such action is planned yet by the Bush administration.

''If it goes on for even a short period of time, it's a problem for the economy,'' White House spokesman Ari Fleischer said. ''We're monitoring it closely.''

The Bush administration is working to get both sides to the bargaining table with federal mediators. But Spinosa said: ''We don't need outside people to come in.''

Under the last contract, a full-time longshoreman makes an average of $80,000 a year, while the most experienced foremen average $167,000.

The talks began deteriorating during the summer, and over Labor Day weekend the union stopped approving rolling extensions of the contract, which officially ended July 1.

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On the Net:

Longshoremen: http://www.ilwu.org/main.htm

Shipping Lines: http://www.pmanet.org



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