West Coast dock workers and terminal operators have agreed to resume negotiations with the help of a federal mediator, the first sign of progress toward ending a week-long management lockout that has closed all the ports and choked off trade between the U.S. and Asia.
The International Longshore and Warehouse Union, which represents 10,500 members at 29 West Coast ports, agreed to use mediation on the key point of contention in the dispute: management's demand to make greater use of technology. The Pacific Maritime Association, which represents major shipping lines and port terminal operators, had been pushing for mediation for some time, but the union had not agreed to that until now.
The port shutdown is costing the U.S. economy an estimated $1 billion a day, disrupting the flow of goods to U.S. retailers preparing for the key holiday shopping season, as well as the flow of parts to U.S. factories.
Several business groups, including the National Retail Federation, have asked the Bush administration to reopen the ports immediately. The president has the power to order the two sides back to work for an 80-day cooling-off period. But so far, Labor Department officials have said it is too early to consider exercising those powers under the Taft-Hartley Act.