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Longshore Union Walks Out of U.S. Mediation Talks
Tuesday, October 1, 2002; 8:07 PM
By Michael Kahn

OAKLAND, Calif. (Reuters) - Efforts to start federal mediation for a U.S.
port dispute that has stranded mountains of cargo on West Coast docks
collapsed Tuesday after the longshoremen's union stormed out of talks,
accusing port employers of bringing "gun-toting thugs" to the meeting.

International Longshore and Warehouse Union President James Spinosa accused
port employers of intimidation as both sides dug in their heels, raising
doubts over when they will return to the bargaining table.

"It is totally out of line. This is nothing more than intimidation," Spinosa
said as he pulled his negotiating team out of the meeting with officials
from the Federal Mediation and Conciliation Service in Oakland, California.
"The meeting was called short because of the armed men."

It was unclear if or when the discussion of possible federal mediation --
urged by President Bush and a growing list of worried U.S. businesses --
would resume.

Tuesday's meeting, following a brief negotiating session Monday, was aimed
at outlining a suggested framework for mediation of a labor dispute which
has idled virtually every major West Coast port and poses an increasingly
grave threat to the U.S. economy.

The Pacific Maritime Association, which represents shipping companies and
terminal operators at ports ranging from San Diego to Seattle, locked some
10,500 union workers out of the docks Sunday after accusing them of staging
widespread work slowdowns as contract negotiations stalled.

The ILWU's Spinosa said he was withdrawing from the preliminary talks after
PMA representatives arrived at the meeting with two armed guards --
described as "gun-toting thugs" by one union spokesman.

PMA officials confirmed that armed guards had been present at the meeting
site but described them as a "security precaution" for lead PMA negotiator
Joe Miniace, and said they had no bearing on the negotiations.

Spinosa said he would consult with his negotiating committee Tuesday on
whether or not they would go ahead with a planned meeting with PMA officials
Wednesday.

"We feel that this set of negotiations has taken a turn for the worse,"
Spinosa said. "We are very, very far apart."

The union said it would insist that future negotiating meetings take place
between the two group's executive committees, and that it had no intention
of signing a contract extension -- a key PMA condition for unlocking the
ports.

PMA officials, for their part, said they would not change the negotiating
team and that it appeared the talks scheduled for Wednesday would not
happen.

"We have no idea if there is a meeting tomorrow," PMA negotiator Tom Edwards
told a news conference. "The talks right now are not going."

GROWING RANCOR

The collapse of Tuesday's mediation meeting marked a fresh setback in a port
labor dispute, which has grown increasingly rancorous over the last several
days.

President Bush said Tuesday he was concerned that the dock lockout could
hurt the economy and urged the parties to use federal mediation to resolve
their problems. Port managers estimate the shutdown is costing the U.S.
economy as much as $1 billion per day.

"We're worried about it," he told reporters at the White House. "We're
closely monitoring it.

"There's a federal mediator on the ground and I urge both parties to utilize
the mediator," Bush said. "We're just going to have to get these parties to
work through it, get back to work, open these ports up. It's important for
our economy to do so."

Union officials said Tuesday they had no intention of going to Washington to
continue discussions with federal mediators, although they did not
permanently shut the door on possible mediation efforts.

The West Coast port lockout has raised fears that shipping could remain
paralyzed for days or even weeks in the crucial run-up to the Christmas
shopping season.

Labor analysts say any prolonged port disruption could force the
administration to act. Bush has intervened or threatened to do so in several
major labor disputes at major airlines, which eventually led to settlements.

Under the Taft-Hartley act, the U.S. government has

the authority to obtain an 80-day injunction against labor disruptions that
could endanger "the national health or safety."

NEW TECHNOLOGY THE KEY STICKING POINT

The U.S. port dispute hinges on the issue of new technology. Port employers
say it is crucial to introduce innovations -- including such prosaic
machinery as bar code scanners for cargo tracking -- to maintain
competitiveness and keep pace with rising cargo volumes.

The ILWU has resisted the technical changes as a possible threat to union
jobs. On Monday it informed the employers' group that the technology issue
was effectively off the table.

The PMA has estimated that the port impasse could be costing the U.S.
economy as much as $1 billion a day, but other trade analysts say this may
be an overestimate.

Nevertheless, with cargo frozen on the docks, shipping schedules in chaos
and rail and truck deliveries disrupted, the Wets Coast dock impasse is
already having a ripple effect through the U.S. economy. Some manufacturers
are contemplating shutdowns within days and there are fears that imports of
everything from $1 bunches of bananas to $35,000 luxury cars could suddenly
be shut out of the U.S. market.

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