Strike still idles ships on West Coast
SAN FRANCISCO (AP) – West Coast ports were idle Tuesday as a labor dispute dragged on, leaving cargo ships brimming with car parts, produce and other goods anchored just offshore and lines of trucks unable to unload their haul. A federal mediator planned to join negotiations Tuesday in hopes of resolving the dispute, which could cost the U.S. economy more than $1 billion a day. A bargaining session between dock workers and shipping lines Monday evening showed no major progress.
President Bush expressed concern Tuesday about the shutdown’s economic consequences, but did not signal whether he would order the docks reopened.
“There’s a federal mediator on the ground. I urge both parties to utilize the mediator. But we’ll continue to pay attention to it,” Bush told reporters at the White House. “It’s a problem – something that we’re just going to have to get these parties to work through and get back to work, open these ports up. It’s important to our economy to do so.”
Shipping lines vowed to keep all 29 major West Coast ports closed until the longshoremen agree to extend their expired contract while talks continue. The 10,500-member dockworkers union has refused to budge until the lockout is ended.
The two sides are at odds over pensions and other benefits, as well as the union’s demand to have a say in any new jobs that would come with the introduction of modern cargo-handling technology.
Delays are spreading through the trade supply chain, postponing shipping schedules and hurting exporters.
Avocados from Central America sat in containers in the Port of Tacoma, Wash., televisions from Korea remained boxed up in Southern California and car parts destined for a General Motors/Toyota plant in Fremont, Calif., sat unloaded in the water off Oakland.
If those parts don’t arrive soon, production at the New United Motor Manufacturing Inc. factory will stop by week’s end, a plant spokesman said.
Consumers in Hawaii and Alaska could feel the pinch first.
“As long as the delays are relatively small and short-lived, the economic impact is relatively small,” but problems would compound if the lockout extends beyond four or five days, said Bob Magee, president of Totem Ocean Trailer Express, which sends a container ship three times a week to Alaska with groceries, mail, cars, apparel and other goods.
Economists said a protracted work stoppage will disrupt much of the U.S. economy.
A five-day shutdown would wipe out $4.7 billion in wages and revenue, according to the Pacific Maritime Association, which represents shipping lines and sea terminal operators. If it lasts 10 days, the costs could snowball to $19.4 billion, said economist John Martin, who studied the potential impact for the association.
West Coast ports handled more than $300 billion in cargo over the past year.
Dozens of ships are waiting to be unloaded outside ports along the West Coast, including 46 ships in Southern California alone. And for other workers who depend on shipping for their livelihoods, time and money is running out.
Trucker Salvador Nunez drove to the Port of Los Angeles from a small town near the Mexican border with a load of alfalfa sprouts and hay – but was turned away.
Nunez was out $125 in transportation costs and could not collect his usual $400 for the job. If the work stoppage lasts more than a week, “it will be too long,” said Nunez, who supports a wife and two children. “I’ll be out of money.”
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On the Net:
International Longshore And Warehouse Union: http://www.ilwu.org
ain.htm
Pacific Maritime Association: http://www.pmanet.org