Negotiators for the Office Clerical Unit of the ILWU Local 63 and terminal and shipping line employers at the Port of Los Angeles and Port of Long Beach are headed back to the tables this afternoon (7/12) after talks ended last week without resolution. As management employees took over clerical duties to keep terminals operating, placard-carrying OCU workers expanded their pickets to five separate port facilities - the Yusen Terminal, West Basin Container Terminal and Seaside Transportation Service Terminal in Los Angeles, and Total Terminals International and Pacific Container Terminal in Long Beach. Although ILWU longshore workers from three Los Angeles area locals initially refused to cross new OCU picket lines, an area arbitrator appointed jointly by the ILWU and the Pacific Maritime Association ordered the dockworkers - who are covered under a separate contract - back to work on July 8. Another arbitrator made a similar ruling after picket lines were first established on July 1, saying that the OCU had not bargained in good faith.
One of three major issues being debated by the OCU and employer representatives deals with the hiring of temporary employees. Under the OCU contract that expired on June 30, each clerical worker receives 54 to 64 paid days off each year, including 21 paid holidays, 13 days of sick leave and four to six weeks of vacation. Stephen Berry, an attorney representing terminal operators and shipping lines, says OCU representatives want employers to hire temporary employees from a union "casual" pool to fill positions whenever an employee is absent or whenever someone retires or resigns. Employers want to use temporaries only when needed, and not when business is slow. Employers also want the flexibility to fill a vacant position with another clerical worker who already works within a given office, rather than hiring a casual who may have never worked at the office and who may be unfamiliar with the job. Berry says the OCU demands represent a "boondoggle for the union to get their casual employees out." John Fageaux, representing the OCU employees, was unavailable for comment.
A second point of contention between the union and employers deals with technology. Under contracts negotiated in 2004 and 2007, the OCU permitted technology - such as on-line booking - provided that the technology did not result in layoffs. If a union employee believed that technology was implemented improperly, the employee could file a grievance with an area arbitrator. Berry says that even though no employees have been laid off due to technology, and "not a single grievance has been filed related to improper implementation of technology," the union now wants to eliminate on-line bookings. Berry says employers have given the union a guarantee that every OCU employee will retain his or her job for the term of the six-year contract, and every employee will be guaranteed a full work week of 37.5 to 40 hours. Employers contend that the loss of on-line booking capability will make it impossible for Southern California ports to compete with other ports in the nation and the world where such technology is common.
A final source of contention between OCU negotiators and terminal employers is wages and benefits. Employers claim that they have offered the OCU a wage increase on top of "an average annual compensation package of $165,000." That compensation package includes wages and overtime premiums averaging $96,000 per year, plus pension and health care benefits. The union is seeking a 32 percent increase in wages and benefits over three years for clerical workers at most terminals.
The Port of Bellingham is following the Port of Tacoma's lead in conducting a wide-open search for a new executive director. Last week, three finalists for Bellingham's top spot were invited to the port to interview with commissioners, two staff groups and a community stakeholder group. They also were given a tour and met with community folks at an evening reception. Finalists are Jeffrey Bishop, executive director of the Oregon International Port of Coos Bay; John Carter, the City of Bellingham finance director and previous port CFO; and Dwight Rives, the Port of Seattle construction director. More than 100 candidates have applied for the job, which commissioners hope to fill this month. The interview process is similar to that used earlier this summer in Tacoma, where CEO finalists were invited to compete before employees and community leaders prior to formal interviews with commissioners. Tacoma's search led to the selection of port deputy executive director John Wolfe.
In addition to inviting the public to participate in the executive director hiring process, Bellingham officials also are inviting the public to share a cup of Joe with their elected leaders. Four "Coffee with a Commissioner" sessions have been scheduled throughout the Bellingham area during early morning hours. Anyone who is willing to get up and out by 7:30 a.m. is invited to attend.
U.S. Sen. Barbara Boxer visited the Port of Stockton last week during a two-day campaign sweep through the state. Boxer highlighted the job-creation projects she has supported and was praised by Port Commission Chairman Steve Herum who said that Boxer was instrumental in securing a $30 million grant to create a marine highway system between Stockton, the Port of West Sacramento and the Port of Oakland. Republican challenger, former Hewlett-Packard CEO Carly Fiorina, accused Boxer of grandstanding.
The Port of Portland received some green kudos last week when Forbes.com listed the port's new headquarters as one of the 10 most high-tech green buildings in the world. The list was compiled by a San Francisco architect and included buildings in the United States and Europe. Portland's 205,000-square foot building, which opened in May, features an indoor garden that functions as a wetland to treat wastewater for reuse in the building's toilets and cooling tower. More than 200 pipes under the building provide ground-source heating and cooling in a closed loop system - the first coupling of such heating and cooling systems in the United States. Other features, including window glazing, fixed exterior shading and water-efficient fixtures, will allow the building to use 75 percent less water and 36 percent less energy than standard buildings of the same size.
The Port of Vancouver USA is hashing out a deal with Farwest Steel for a fabrication, warehousing and distribution facility at the port. The port plans to sell Farwest 20 acres of surplus industrial land for the operation. The item was supposed to go before Vancouver's board of commissioners this week, but was pulled because port officials are still working on details of the agreement. Now it is expected to go to the board in August. If Vancouver approves the Farwest deal, it will lead to the construction of the second steel manufacturing facility to be approved for a Columbia River port this summer. Last month, officials at the Port of Longview approved leases with IDM Longview and Skyline Steel to construct and operate a steel pipe manufacturing center on 35 acres in the port's West Industrial Park. Two other steel production facilities are already located in Longview.
Port of Oakland commissioners have unanimously elected new officers for their board. Oakland attorney James Head, who is the vice president of programs at the San Francisco Foundation, was elected president. Attorney Pamela Calloway, who is principal of Calloway & Associates and involved in economic and workforce development, was elected first vice president. Gilda Gonzales, who is the chief executive officer of the non-profit community development Unity Council, was elected second vice president. All three were appointed to the seven-member port board in 2009.
Trucks that are non-compliant with state air quality regulations will be banned from marine terminals at the Port of San Diego beginning Jan. 1 of next year. The action strengthens the port's Clean Truck Program that was developed in 2007. Since Jan. 1 of this year, port officials have reported any trucks that have entered marine terminals without being registered in the database of the California Air Resources Board or that had engines older than model-year 1994 - or both. Nevertheless, the port has relied on state officials to actually enforce air quality laws. After first quarter 2010 reports indicated that 45 percent of the trucks entering the port were non-compliant with state laws, port officials decided to strengthen their program by developing an outreach effort and by implementing a truck ban.
In the meantime, CARB officials arrived in San Diego last week to hand out fines to truckers who did not comply with state laws. Failure to register a truck in the CARB database resulted in a $500 fine, and failure to comply with emissions regulations brought a $1,000 fine. Port officials opened customer service stations last week at both the Tenth Avenue and National City marine terminals to provide Clean Truck Program information to truckers, and they expect to spend $130,000 to $160,000 to upgrade terminal gate technology to monitor truck compliance with state regulations. About 385 trucks call at San Diego marine terminals daily to pick up cargoes including containerized fruit, dry bulk products, lumber, steel, automobiles and project cargo such as windmill parts. To date, the San Diego Air Pollution Control District has provided more than $5 million in Proposition 1B funding for replacement of more than 100 trucks.
The Port of Los Angeles and the City of Los Angeles television station LA CityView have been nominated for a Los Angeles Area Emmy Award for an episode of the port's Portfolio program. The half-hour magazine style program - nominated in the "public, municipal and operator produced cable" category - features segments about the port's Fanfare fountain, a hybrid tug boat, an electric truck, and the TransPORTer, a mobile exhibit that explains the functions of the port. Los Angeles Area Emmy Awards are given for broadcast achievements produced or solely financed and controlled by Los Angeles television stations or cable television systems. Winners will be announced on July 31.
During the week ending July 3, intermodal traffic - which totaled 231,286 trailers and containers - was the highest it has been since late 2008, according to the Association of American Railroads. Container volume alone, which totaled 197,134 boxes during the week, was the highest since late 2007. Intermodal container volume was up 39.8 percent over the first week of July in 2009 and 30.8 percent over the same period in 2008. Nevertheless, railroad officials warn that this year's numbers may appear particularly high because the Fourth of July holiday was not included as part of week 27 count. The holiday occurred during the 27th week of the year in both 2008 and 2009.
The Port of Oakland board has adopted a budget for the fiscal year beginning July 1 that includes $166 million in operating expenses and $106 million in debt service payments. Operating expenses for the port's maritime, aviation and real estate sectors are projected to be $5.5 million lower than they were in the 2009-10 revised budget. Even though employees will receive a 3 percent cost of living adjustment, they will still be required to take 10 unpaid furlough days this fiscal year. The total employee head count will be capped at 465 full-time equivalent employees - fifteen fewer positions than were approved last year. Staff levels are currently below the 465-position cap due to retirements, and no layoffs are projected.
Oakland commissioners also have adopted a $10.8 million capital budget for the maritime sector that will include $1.2 million for completion of improvements at the TraPac terminal, $8.2 million for maritime security projects, and $1.4 million for dredging. Some $60 million needed for shore power for ships has been left unfunded.
In another effort to clear the air, folks at the Port of San Diego are installing shore power at their B Street Cruise Ship Terminal and Broadway Pier. The $7 million project, which is being financed through a combination of state and port funds, will provide electrical power at three berths and link the berths to San Diego Gas and Electric's grid. Only one ship at a time will be able to use the electrical system when the first phase of the project is finished at the end of this year, but by 2017, SDGE will add a transformer that will allow for two ships to be plugged into the system simultaneously. Port officials say it is common for two ships to visit the port simultaneously during the peak Mexican cruise season that runs from September through May, but simultaneous calls by three or four cruise ships are infrequent.
A life-size model of PITCH:AFRICA - a rainwater harvesting and filtering system built into a soccer playing surface - was unveiled last week at an event at the Port of Los Angeles. The Annenberg Foundation plans to work with the Charlize Theron Africa Outreach Project to explore a location in South Africa to build the first PITCH:AFRICA system. The systems will capture rainwater that falls during the tropical rainy season and store it in cisterns beneath the surface of a soccer field. The water will then be filtered and distributed to local residents. One system will be able to provide enough water to meet the daily needs of 1,000 people for a year.
-- The Cunningham Report
