Contract Negotiations Update 7/15/02

The ILWU and PMA continue to meet on a daily basis.  The contract is being extended day by day.  To date, there has not been much movement in any area. This week is critical in trying to hammer out a contract because both parties understand the July 22 caucus date is another important deadline similar to the July 1^st contract expiration date.

The two main issues in negotiations have been maintenance of benefits and discussions of new technologies.  As has been previously reported, the PMA was proposing massive cuts in our benefits plan. Although, at this current time, the PMA is still proposing things such as higher yearly out-of-pocket maximums for our members.  The Union has vehemently opposed the “cost shifting” proposal of PMA, and no doubt this issue will be revisited later this week.

The other issue of major concern has been the technology issue involving clerk work.  The employers are proposing the free flow of information into the terminal computer systems of PMA employers.  As it currently stands, when information from overseas reaches a terminal here, it is re-keyed or inputted into the system by a clerk.  The employers’ proposals on this issue have been vague and they are asking the Union to give up jurisdiction to this and abandon all arbitrations we’ve won that protect this jurisdiction.

The difficulties for the clerks is trying to understand the impact and figuring out what jobs are going to be left.  Also, the Union is concerned about PMA outsourcing whatever jobs are left.  For example, SSA has set up its planning operation in Utah and is doing much of the data correction and inputting that could be performed on the terminals here.  The Union , under the assumption that it’s time to embrace technology, is putting together a document that will address these issues and move the industry forward.

Other than these issues being discussed at the “big table”—that’s when both the PMA and ILWU meet across the table and the leaders from both sides do the talking—the parties have broken into subcommittees. Subcommittees are meeting with members of both sides to discuss specific topics.  For example, in the past week, subcommittees have met on container gang/dispatch hall, technology, PGP/Industry travel committee, Section 9 committee, Holiday/Vacation committee. Movement and agreement over issues in these subcommittees has been slow, mirroring what’s going on at the “big table”.

In conclusion, it seems that the PMA’s strategy is to stall and frustrate as much as possible.  It is a very real possibility that the PMA is counting on government intervention from the Bush administration. If Bush does intervene, the best case scenario would be a Taft-Hartley 80 day cooling off period.  The worst case scenario would involve possible legislation to put the ILWU under the Railway Labor Act.  This would allow the government to impose decisions that are final and binding on the parties, taking away the collective bargaining rights of the ILWU.  These scenarios are a real possibility, considering the importance of this industry to the fragile U.S. economy and the hysteria of national security because of the terrorist threat to West Coast ports.

On the positive side, the Union is determined to bargain hard this week in order to produce a good contract to present to the caucus next week.  The Union is actively battling the PMA in Washington , D.C. , Sacramento and in the state legislatures of Oregon and Washington .  The Union is also working hard with the AFL-CIO in gathering support from labor unions and community organizations.  Also, the Union has sent teams overseas, to prepare, educate and gather support from International dockers organizations about the state of these negotiations.

Also, the Union is asking that, if you have not contributed your $50.00 to the ILWU Political Action Fund (PAC), please do so.  The PAC fund can only use money that is designated specifically for this use.  This money will be used for Federal candidates.  The $500.00 assessment is separate from this and cannot be used for political purposes.

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