Terminal operators stand united in contract talks

By Patrick Burnson -- Logistics Management, 11/1/1999

Both sides won in the recently concluded contract between the Pacific Maritime Association (PMA), which represents maritime terminal operators, and the International Longshore & Warehousemen's Union (ILWU), says PMA Senior Vice President Terry Lane. Even so, he warns, there still could be some bumps in the road ahead as new technology is introduced.

Speaking before the annual luncheon meeting of the Foreign Shippers Association in San Francisco last month, Lane said the contract provided shipping companies and stevedores with predictable costs and performance levels. "Productivity levels" he noted, "are stable and in fact show signs of improving."

At the outset of negotiations on the latest contract, the threat of a coastwide strike was serious, he said. But those worries turned out to be unfounded: The contract won approval from more than 80 percent of the union's voting members. "We believe the ILWU unity was in reaction to our efforts and strategies," said Lane. "The union's perception of a more unified PMA was of grave concern to not only their leadership, but also to their rank and file." Whether that solidarity can be maintained until the next contract negotiations three years from now remains to be seen, he said.

This year's settlement stands in marked contrast to the last round of talks in 1996. During those negotiations, noted Lane, the union had to hold two votes in order to achieve a 60-percent majority vote in favor of the contract. The second vote was necessary because the union's largest local, in Los Angeles/Long Beach, voted against the tentative agreement the first time around.

Lane noted that following the 1996 contract, PMA members' costs "were going out of sight." Much of that rise in costs was due to struggles within the union, he told the shippers group. "We were dealing with a union without unified leadership," he said. "We watched for over two years as the union struggled internally. ... Work stoppages were rampant, with more than 150 such incidents."

Lane said that more hard work lay ahead for PMA negotiators, who are pressing for the introduction of a more efficient gating and yard system. "Labor is suspicious about the introduction of new technology," he said. "To them, it means fewer jobs, when in fact it will likely mean more employment."