Terminal operators on the West Coast reported business as usual Tuesday after the International Longshore and Warehouse Union walked out of contract negotiations with the Pacific Maritime Association over the weekend and refused to extend the previous contract. Although there were no apparent work slowdowns during the first shift Tuesday, terminal operators warned that the situation was fluid and could change without notice.

The PMA assembled its negotiating committee Tuesday afternoon and notified the ILWU it was ready to resume talks immediately. The union had likewise assembled all of its local officials in San Francisco, but it did not immediately respond to the call by the PMA to resume negotiations. The ILWU could not be reached for comment.

The union caught terminal operators off-guard on Sunday when it walked out of negotiations after rejecting a PMA proposal to introduce new dockside technology. By refusing to extend the previous contract, which had been extended on a day-to-day basis since July 1, the union sent a strong message to employers that work slowdowns were a possibility. The ILWU used slowdowns successfully in the 1999 and 1996 negotiations to press its demands. A strike and slowdowns are forbidden under the waterfront contract.

Technology has become a major hurdle in negotiations. Employers are seeking flexibility to introduce new technology to improve productivity and reduce operating costs at West Coast ports. The ILWU said it will cost union jobs and will give employers the freedom to outsource jobs to non-union workers.

The ILWU had stated since negotiations began on May 13 that it did not want to strike. If the union did call a job action, the Bush Administration would be expected to invoke the provisions of the Taft-Hartley Act, which sends workers back to their jobs for an 80-day cooling-off period.

In order to strike, the ILWU would have to secure approval from the rank-and-file. That involves mailing strike ballots to all registered longshoremen and awaiting their response, a process that would take at least a week.

But while a cooling-off period would last through the peak shipping season, weakening the union's leverage to use a strike, work slowdowns are still a possibility, and could be especially damaging now that the peak shipping season is in full swing.

PMA President Joseph Miniace has threatened to lock out the ILWU if the union engages in slowdowns that result in gridlock at West Coast ports.

By Bill Mongelluzzo