Features

Pensions are hot topic as West Coast port talks resume

By Justin Pritchard The Associated Press
Wednesday November 13, 2002

SAN FRANCISCO — Both sides in the West Coast ports dispute resume bargaining Wednesday wondering whether progress in their contract dispute is the new rule — or the exception that proves labor peace remains beyond the horizon. 

After a week’s break, longshoremen and shipping companies were slated to renew their first party-to-party talks with a federal mediator since Nov. 5. They’ve spent the break mulling pension proposals, the next hot topic in a clash that led to last month’s 10-day shutdown of 29 major Pacific ports. 

In these negotiations, pensions are laden with symbolism. 

The International Longshore and Warehouse Union says retirement benefits must be sweetened in exchange for the introduction of computerized cargo tracking systems that will make dockside work more efficient but also cost jobs. 

The union calculates that the more efficient technology will save shipping lines and port terminal operators “at least $200 million a year,” said spokesman Steve Stallone — and longshoremen want a bite of that pie. 

“When the workers step up as we have to advance the industry at the cost of some of our jobs, we deserve some compensation for that and we deserve to have some retirement security,” Stallone said. “And we want to take it in the form of pensions.” 

The shipping industry press has reported that association members are divided over what has been federal mediator Peter Hurtgen’s greatest feat to date — a tentative agreement to expand the cargo tracking process. 

In announcing the hiatus last week, Hurtgen said the Pacific Maritime Association that represents shipping companies wanted time “to evaluate anticipated technology-based operational savings and pension funding costs into future years.” 

Hurtgen has imposed a media blackout, and on Tuesday a spokesman for the maritime association wasn’t available for comment. 

Still, a few things are clear. 

The tentative technology agreement could be imperiled if Hurtgen can’t get both sides closer on pensions. And the difference between the pension offers from both sides is wide. 

In October, the association offered a 25 percent pension increase over five years. The union countered with a proposal that would bring the maximum annual retirement benefit to about $50,000 for its most experienced members. 

That may sound like retirement in style, but by general standards it is a little low given union members’ wages.