Contract negotiations resumed Wednesday morning between the International Longshore and Warehouse Union and the Pacific Maritime Association with an agenda focused on two key issues: establishing a neutral system of arbitration for waterfront disputes and achieving a large increase in pension benefits for dockworkers.

Both parties appear anxious to reach a settlement. Before negotiations recessed last week, the ILWU and PMA reached tentative agreement on a framework for introducing information technology at West Coast ports. This development was significant because it satisfies the PMA's longstanding demand for a free flow of information to marine terminals.

It also demonstrated that employers want to reach a conclusion to the negotiations that began on May 13 because the technology agreement allows the ILWU to expand its jurisdiction over planning jobs for container yard and on-dock rail operations. ILWU marine clerks previously had no contractual right to yard and rail planning jobs, so this represents a significant concession by the PMA.

The ILWU is also focused on concluding the contract talks. As a result of last week's national elections, Republicans will control the new Congress that convenes in January. With a contract in place, there would be less reason for Congress to interfere in waterfront affairs.

During the difficult period following the 10-day employer lockout in October, when West Coast ports experienced severe congestion, some representatives in Congress indicated they wanted to ensure that the nation's economy will never again be held hostage to labor disruptions on the West Coast. Placing the ILWU under the Railway Labor Act, which would prohibit strikes or lockouts, could achieve that end.

The negotiations also resume without public input from the West Coast Waterfront Coalition, which represents major shippers, including some of the nation's largest retailers. When it was formed two years ago, the coalition's mandate was to analyze transportation logistics and work with the maritime industry to improve productivity at West Coast ports.

During the contract negotiations, the coalition became a source of strength for employers because major shippers indicated they would not abandon West Coast ports if the PMA had to stand firm on productivity issues and suffer job actions as a result.

The coalition therefore became a lighting rod for criticism from the ILWU, which charged that it was openly biased in favor of employers.

Now, other shipper groups such as the International Mass Retail Association, chambers of commerce and agricultural organizations are handling public commentary on the negotiations. Jonathan Gold, a spokesman for the retailers association, said the message of all of these organizations is that the PMA and ILWU should remain at the bargaining table and reach a contract settlement before the Taft-Hartley injunction expires in late December.

Contract negotiations resumed Wednesday under the guidance of the Federal Mediation and Conciliation Service. The ILWU indicated it expects a significant improvement in pension benefits as a trade-off for a technology framework that could cost 400 ILWU marine clerks jobs in the years ahead.

The union is reportedly seeking pension benefits of $150 per month per year of service. That would translate to $63,000 per year for a longshoreman who worked 35 years.

As far as employers are concerned, establishing a neutral system of arbitration could be the deal-maker or breaker. Day-to-day disputes on the waterfront are resolved by arbitrators nominated by the ILWU in Los Angeles-Long Beach and Seattle-Tacoma and by the PMA in Northern California and the Columbia River ports.

The arbitrators usually have a past affiliation with either the union or employers. Therefore, the crucial interpretations of the contract they make at the local level are oftentimes challenged by one of the parties involved in the dispute. The PMA wants to establish a grievance process where decisions are made by a neutral arbitrator with no previous connection to either the employers or the ILWU.

By Bill Mongelluzzo