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The
US International Longshore and
Warehouse Union has issued with
notice of work stoppage 1 July 2002
over proposed changes in work rule
by the Pacific Maritime Association,
the management group that represents
shipping lines and port terminals
operators in California, Oregon and
Washington state.
The
threat by the dock workers, if
carried out, could severely affect
much of the trade between Asia and
US and cost the American economy an
estimated US$1 billion in just a
single day.
The
work stoppage by the workers would
virtually stop the movement of ships
other than oil tankers calling at US
West Coast.
The
stoppage would result in other North
American ports being unable to
handle the containers and
automobiles that now move across the
West Coast ports where most of
shipping lines call carrying cargo
between Asia and the US.
The
dispute between the port workers
union and PMA is over the move by
the latter to seek changes in work
rules that PMA argues is important
for the ports to be able to handle
expected doubkling of ocean
shipments between Asian and the US
over the next seven to 10 years.
Port
operators feel the ports cannot
continue to operate as they have in
the last 50 years and must now be
more productive in the light of
swift expansion of trade.
A
major issue is the wider application
of new technology – notably
electronic transfer of documents –
which the workers’ body had been
resisting, claiming it could take
work away from them.
The
ILWU an unspecific number of jobs
could be lost if PMA’s proposal to
change work rules is accepted.
Meanwhile,
industry sources expect some
increase in shipments from Asia in
advance of the 1 July deadline
although high inventory holding cost
and limited warehouse space may
limit the option.
However,
with so much at stake, it is that
President Bush may intervene to
avert the work stoppage or
slow-down.
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