Here is a nice succint explanation from Chuck Grimes on LBO: Okay, the more realistic issue is that shipping clerks who run the computers for automated inventories and FOB manifests port-side, are at the moment, unionized under the ILWU. The PMA and shippers want to de-link these jobs from their unionization, and out-source the computer procedures to third party contractors. This outsourcing is technologically feasible since there is no concrete reason a computer monitor and database program have to be located inside the port of entry. Both can be exported anywhere in the world and the job can be performed by anybody, through remote links (with video feed). The union wants these jobs unionized no matter were they are located, and the shippers don't---for very obvious reasons. It is a whole lot cheaper to patch a live link to somewhere else and outsource the routine database entry jobs, than it is to pay ILWU wages to have these jobs done in the Port of Oakland.
Ian Murray wrote: > washingtonpost.com > 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. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
