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Pressure's on for dockworker pact
Labor - With a slowing economy, the union and the ports are trying hard not to repeat 2002's 10-day lockout
Monday, June 30, 2008
AMY HSUAN
The Oregonian Staff
With the expiration of a contract looming Tuesday, unionized dockworkers and the world's largest shipping lines have yet to reach a deal on a new labor agreement covering 29 West Coast ports.

But unlike the previous time the two groups sat at the table, there's little chance of a showdown like the one that escalated to a 10-day lockout in 2002.

Both sides say they want to continue talking after Tuesday's deadline and keep the ports, critical gateways for the U.S. economy, running smoothly. In an election year and with a slowing economy, the pressure is on both sides to reach an amicable agreement, analysts say.

"By all accounts, the process has been more productive and respectful this time," said Craig Merrilees, spokesman for the International Longshore and Warehouse Union, which represents 25,000 dockworkers from San Diego to Seattle. "The whole tone and tenor is different."

In Oregon, the union's agreement with the Pacific Maritime Association will cover roughly 1,000 workers, including those at the Port of Vancouver. About half of the union's local members work at the Port of Portland, the fifth-largest port on the West Coast.

In 2002, five months of negotiations escalated into a bitter fight when the union representatives and shippers became stuck over medical benefits and new technology. A 10-day lockout ensued, which included Portland workers, leading to the shutdown of the West Coast docks and about $15 billion in economic losses.

Paul Bingham, an economist with the research firm Global Insight, said that scenario is unlikely this time around.

"With this economy and this being an election year, there are too many external pressures for them not to get a deal," Bingham said.

Madeline Turnock, the Pacific Maritime Association's Oregon spokeswoman, said the talks taking place in San Francisco would continue through the weekend. The two sides have negotiated since March 17.

"Both sides remain hopeful that they can resolve any outstanding issues at the table," Turnock said. "After July, it's hard to say what will happen."

Agreement on health care

Last week, the two sides reached a tentative agreement on a health care plan worth about $500 million a year -- a sign of progress for a common sticking point in past negotiations.

The union asked to retain its current plan, which requires no worker payments, has a zero deductible and $1 prescriptions. Shippers said they wanted to contain health care costs, which they say ballooned from $202 million in 2002 to $419 million last year. Neither side released details of what agreement was reached.

Although a step forward in the negotiations, the two sides remain at odds on several key issues, including wages, pensions and safety rules.

Longshore workers typically make $22 to $30.68 an hour, putting those jobs among the highest-paid blue-collar jobs in the U.S. However, the work comes with many safety risks, making the jobs among the nation's most dangerous.

Since 2002, 17 longshoremen have been killed on the job, putting dockworkers above the fatality rates of West Coast firefighters or police officers, according to the union's statistics. Some were crushed by heavy equipment such as 15-ton containers or smashed by forklifts.

The Port of Portland has one of the West Coast's best safety records. There have been no fatalities since 1993, and in March, the Local 8 chapter won the Pacific Maritime Association's lowest-injury-rate award. But in nearby Tacoma and Seattle, three workers have been killed, and two more in other Washington ports.

Jeff Smith, a member of the Portland-area chapter of the longshore union, said injuries are increasingly fatal as waterfront equipment grows larger and there is more pressure to work faster.

"We have to be sharp on our toes," Smith said. "But the employers want us to move faster, get the ships out faster. Twenty-five years ago, the machines weren't what they are today."

Smith, a member of the safety rules negotiating committee, said he saw three of his friends become disabled on the job. None of them will walk again because of the injuries they sustained.

"Safety is the No. 1 thing in this contract," Smith said. "It's a huge issue for us."

A push for productivity

At the same time, the shipping association is pushing to maintain productivity as the ports move more cargo.

Last year, the West Coast ports moved 12.2 million cargo containers, accounting for an annual domestic impact of $1.2 trillion, about 11 percent of the U.S. gross domestic product, the association said. That volume marked a 45 percent increase from 2002.

In Portland, workers moved the equivalent of 260,128 containers last year, about a 2 percent increase from 2002. In 2006, $11.5 billion worth of imports and $2.8 billion worth of exports came through the Portland harbor.

Simultaneous to contract bargaining, the two sides negotiate on equipment and rules that reduce work hazards and increase safety. In the past, the negotiations have led to seat belts in forklifts and warning signals when forklifts are backing up.

"Their safety code is written in blood," said Jennifer Sargent, longshore union spokeswoman for the Northwest. "Every rule they have there's a good reason for because something terrible has happened."

This time, union representatives have already received a commitment from the Pacific Maritime Association to get defibrillators on-site. It's particularly important for workers at the Port of Portland, Smith said, because workers run up 13 flights of stairs to unload automobiles. "You do that 40 to 50 times a day," Smith said. "But if you have a bad heart, it's a dangerous job."

Often, it takes years for safety rules to be implemented. Union representatives have been working since 1999 to get the employer group to agree to buy defibrillators at every port.

That's likely to be the case with another item on the union's wish list. Workers have lobbied for improved air quality. They've asked that ships run on electricity when they dock, eliminating the exhaust they emit from idling for long periods.

The Pacific Maritime Association's Turnock said she was unaware of any outstanding issues with safety negotiations, but that it was an ongoing issue.

"Safety is the responsibility of both parties," Turnock said. "They are always looking at improving safety."

Amy Hsuan: 503-294-5137; amyhsuan@news.oregonian.com