Geo. S. Bush & Co., Inc - Email Alert September 3, 2002

ILWU-PMA Update 9/3/02

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) have been negotiating a new three-year contract since the last contract expired on July 2, 2002. The two parties have been extending the contract for a 24-hour period following the close of each day’s talks.

Over the weekend, ILWU representatives walked out of talks after the PMA proposed new technology to more efficiently operate the ports. The fear is that ILWU members will begin work slowdowns, having a very costly affect on terminals and steamship lines. This type of maneuver has been used in past negotiations and has been very effective form the union’s standpoint. It is clear, however, that this negotiation is unlike previous ones and that the PMA may be taking more of hard line approach.

The PMA has stated that work slowdowns will not be tolerated and may lead to a “lockout” by employers. The Bush Administration has the authority under Taft-Hartley to order work to resume for an 80 day “cooling off period”. It is likely that this will be used should a strike or lockout occur.

A West Coast shutdown would have a devastating affect on the national economy – approximately $1 billion per day is imported through US West Coast ports. We will continue to monitor the situation and update you accordingly.

Geo S Bush & Co Inc

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