Waterfront employers and union longshoremen have reached a tentative agreement on a framework for the introduction of new technology for cargo handling at West Coast ports, industry sources say.

The apparent breakthrough was disclosed early today by the National Industrial Transportation League and other industry sources.

They said the Pacific Maritime Association and the International Longshore and Warehouse Union hammered out the tentative deal in all-night negotiations Thursday on a possible approach as to how technology will be introduced on the docks.

Automation to speed the flow of cargo through West Coast ports, and the union jobs it would eliminate, have been the core issue during the contentious contract talks that began May 3 and eventually led to a 10-day lock-out of dockworkers by management.

The sources cautioned that the agreement was still in the process of being reviewed, and that management and labor were scheduled to meet again at 4 p.m. Pacific time (7 p.m. ET) to work out other details of a new contract, which could be concluded by early next week.

A spokesman for the PMA would neither confirm nor deny the reports. The ILWU did not immediately return calls for comment.

The agreement comes just one week after the PMA filed a complaint with the Justice Department accusing the union of slowing down cargo handling along the West Coast. Lock-outs and job actions are prohibited by the federal injunction granted under the Taft-Hartley Act, which President Bush invoked to re-open the ports Oct. 9.

Terminal operators complained that productivity had fallen as much as 29 percent at some ports, which continue to struggle under the massive backlog of cargo from the shutdown of 29 U.S. Pacific ports.

The union responded to the allegations by blaming employers for the congestion, and accusing Justice of siding with management. The ILWU also called on Attorney General John Ashcroft to mediate an agreement.

Even if a new waterfront contract is settled in the next several days, it could be weeks before cargo is moving normally again. Dozens of ships continue to wait outside West Coast ports for dock space to open up, and more are slated to arrive from Asia this weekend on regular trans-Pacific schedules.

The lock-out and subsequent logjam has raised the cost of moving containers for ocean carriers, some of whom filed for permission to add surcharges to cover losses on their regular shipping rates. The Federal Maritime Commission on Tuesday reminded lines that they can't raise rates for cargo that has already been received. Moreover, new rates don't apply for a month after they are published.

Carriers have also asked Customs to lift the Jones Act restrictions on moving cargo between American ports, so they can deliver containers stranded during the shutdown to their proper destinations.

By Stuart Chirls