2002-09-24 10:53

New labor contract not solved

Many trading companies are worried about strikes in west coast harbors in the US, gateways to Korea’s largest market. The Korean government and trading companies are keeping a close eye on the situation, worrying that if the port labor unions go on strike then export schedules will be disrupted.
According to the Ministry of Commerce, Industry and Energy (MOCIE) September 12, though the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA), representing the employers, have talked about a new coast wide labor contract, they couldn’t come to an agreement even two months after the negotiation deadline, July 1st.
Negotiations began last May before the term of contract between the ILWU and PMA expired on July 1st. After the ILWU rejected proposals from the PMA on July 27, there appeared little sign of a rapprochement. While predicted high sabotage possibilities since September 3, sabotage was deferred until after a tentative agreement on medical benefits.
An officer at MOICE said that there exists some possibility for a strike because of clashes between the ILWU and PMA. The ILWU has pushed to expand its work boundary and job security after the introduction of new technology on the docks.
If the workers go on strike, US exports will be seriously affected as most US exports using west coast ports. Using Canadian ports or US east harbors would only be a band-aid solution as it would require more in logistic costs and transit time.
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