For decades, the West Coast longshoremen's union could boast that its members had some of the highest-paying blue-collar jobs in the nation. Workers who unload ships commonly earn more than US$85,000 a year.
But now the longshoremen fear that their jobs -- and those of future generations of longshoremen -- are under siege.
Those fears could lead to a shutdown of all seaports from San Diego to Seattle on July 1 -- a move that could send shock waves through the nation's already fragile economy.
In the giant Los Angeles-Long Beach port complex, by far the nation's largest port, burly longshoremen complain that the shipping companies want to install more computerized technology that they fear could throw hundreds of union members out of work -- and take away jobs for future dockworkers.
But officials with the shipping companies insist that their role is to run an efficient port, not to protect the jobs of the unborn.
The shipping companies complain about work rules dating from the 1940s and argue that more modern rules -- and more modern technologies -- are needed or the West Coast ports will choke on their own inefficiencies.
These clashing views could lead to the biggest work stoppage on the waterfront since 1971, when the longshoremen staged a four-month strike. While officials with the International Longshore and Warehouse Union say they have no plans to call a strike, the shipping companies fear that the workers will stage a job slowdown if no contract is reached by July 1.
Union members say they worry that management will beat them to the punch and lock out the 10,500 West Coast longshoremen, who remove cargo from ships and record all merchandise that goes in or out of the ports.
"If you have a shutdown of these ports, it would be devastating," said Jack Kyser, chief economist of the Los Angeles County Economic Development Corp "It's not just what it would do to the West Coast economy, it's what it would do to the US economy."
A study by Stephen Cohen, a professor at the University of California , estimated that a five-day work stoppage would cost the nation's economy US$4.7 billion and the cost of a 20-day stoppage would be US$48.6 billion. The West Coast ports handle more than US$300 billion in goods annually, directly affecting 7 percent of the nation's economic output.
Department stores, car dealers, hardware companies and many other businesses fear that a shutdown of the ports could quickly interrupt their supply lines.
Begging for a settlement
That explains why business groups across the nation are pressuring the union and the management group, the Pacific Maritime Association, which represents shipping lines and stevedores, to reach a settlement before July 1.
But not much optimism is heard about the negotiations, and that, economists say, is one reason Wall Street has slumped in recent weeks. As a result of the pessimism, some business groups are urging President Bush to use his powers under the Taft-Hartley Act to order a cooling off period to delay and possibly prevent a strike, slowdown or lockout.
"It's hard to think that all this is being managed in a way that it will be resolved by July 1," said Robin Lanier, executive director of the West Coast Waterfront Coalition, which represents a range of companies, from shipping lines to retailers like Target and automakers like Toyota.
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