Talks continue in West Coast port shutdown; manufacturers hope for White House intervention

<br>SAN FRANCISCO (AP) _ Manufacturers are taking their case to the White House to press for President Bush's intervention in the labor dispute that has shut down 29 West Coast ports and could sap

Friday, October 4th 2002, 12:00 am

By: News On 6

SAN FRANCISCO (AP) _ Manufacturers are taking their case to the White House to press for President Bush's intervention in the labor dispute that has shut down 29 West Coast ports and could sap billions from the nation's troubled economy.

Manufacturers planned to meet with administration officials Friday afternoon as dockworkers and shipping officials continued talks that began Thursday with a federal mediator.

``We will make the case abundantly clear that an extended shutdown of the ports will have a catastrophic effect on the economy,'' said Darren McKinney, spokesman for the National Association of Manufacturers, one of the groups planning to meet with administration officials.

McKinney said the association is holding off on asking the government to intervene.

``We will implore both parties to stay at the negotiating table as long as it takes,'' he said.

``We're working hard. We plan to be here for as long as it takes,'' said dockworkers union president Jim Spinosa. ``We're here to get a contract, whatever it takes.''

Neither side expected a fast resolution.

``We were told to bring our toothbrushes,'' said Joseph Miniace, lead negotiator for the Pacific Maritime Association, which represents shipping lines.

The stalemate has stopped all commercial shipping at 29 ports in California, Oregon and Washington. The work stoppage could be costing the U.S. economy $2 billion a day, said Robert Parry, president of the Federal Reserve Bank of San Francisco.

White House spokesman Scott McClellan said he could not confirm whether administration officials were giving manufacturers an audience on Friday.

``People express their views to the White House and White House staff all the time,'' he said.

Under the Taft-Hartley Act, the president can block a strike or lockout for 80 days if the dispute will ``imperil the national health or safety.'' An inquiry board would need to investigate the issue, which could take several days.

White House spokesman Ari Fleischer said Thursday the U.S. economy is at risk, but wouldn't speculate on whether the president would intervene.

``The administration continues to urge labor and management to come together to get an agreement because the longer this goes, the more harm it will do to the economy,'' he said. ``The president is routinely informed of the status.''

After talks broke down last week, the Pacific Maritime Association locked out about 10,500 dockworkers Sunday, claiming they had engaged in an illegal slowdown.

Along the coast, at least 162 ships were either idle at the docks or have dropped anchor, waiting to unload cargo, according to the Pacific Maritime Association, which represents the shipping lines and terminal operators.

The two sides are at odds over pensions and other benefits, as well as the union's demand to control any new jobs that would come with the introduction of modern cargo-handling technology.

Businesses across the country were hit by the closings, which last year handled more than $320 billion worth of imports and exports.

Food was rotting in cargo holds, and railroads halted grain shipments from the Midwest. Wheat futures dropped sharply Thursday on the Chicago Board of Trade as concerns rose that the lockout would hurt U.S. grain exports.

Elope Inc., a hat wholesaler Colorado Springs, Colo., usually does brisk business this time of year.

``We've already lost the Halloween business. It's Christmas I'm worried about now,'' said company chief executive Kevin Johnson. ``If this isn't resolved in the next week, we're dead in the water.''

Layoffs may begin Friday for 15 full-time employees at Quality Trading, one of the largest straw exporters in Oregon. Quality Trading is made up of 22 Willamette Valley farmers who cut, bale, store and ship straw to farmers in Japan, Taiwan and Korea.

Matt Eide, operations manager for Quality Trading, said Asian dairies will likely turn to other markets, such as China and Australia, if Oregon doesn't come through with shipments.

Shelves of Spam and toilet paper were empty at a Honolulu supermarket on Thursday, and supplies of paper towels were in short supply. Hawaiian businesses and households stock up at even the threat of a shipping interruption because the state gets 90 percent of its goods by ship.