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The Honolulu Advertiser
Posted on: Saturday, June 27, 2009

Matson, unions 'getting closer' in contract talks


By Andy Yamaguchi and Curtis Lum
Advertiser Staff Writers

One of the unions in contract talks with Matson Navigation Co. will go on strike in Seattle this morning, likely disrupting the loading and sailing schedule of the SS Maui, an attorney for the unions said this morning.

The announcement signals a turn for the worse in contract talks between the unions and Matson, which carries two-thirds of the containerized freight to Hawai'i.

Charles Khim, attorney for the unions, said the American Radio Association will strike the SS Maui at 8 a.m. today in Seattle. While only one member of that union is assigned to the Maui, other unions are likely to honor the picket line, Khim said.

One of those is the ILWU, whose longshoremen would not load the ship if they honor the picket, Khim told The Advertiser.

"The net effect is that the ship will not be loaded," Khim said.

It was not immediately known if this turn of events would spread to other Matson container ships, including those that serve Hawai'i.

In addition to the longshoremen, Khim said an estimated 15 members of two other unions now in talks with Matson the International Organization of Masters, Mates & Pilots and the Marine Engineers Beneficial Association probably would not board the SS Maui.

"The whole point is without a full complement of crew, the ship cannot sail under U.S. Coast Guard laws," Khim said.

The SS Maui's destination is Oakland, Calif., said Matson spokesman Jeff Hull. Asked to comment on the union's plans, Hull said he did not know exactly what would happen and declined to comment.

Khim said he expects Matson to challenge the right of the longshoremen to honor the picket line. A court's ruling on that "is likely to have great weight or precedence on other ports along the West Coast, in Oakland and Los Angeles," he said.

Earlier yesterday, talks between Matson Navigation Co. and the three unions that represent its captains and crewmembers in San Francisco were said to be going well, with both sides reporting that progress was being made in an attempt to reach a contract settlement.

Hull said some progress had been made, but declined further comment.

Hull and Khim said management and the unions are focused on the talks and did not want to negotiate in the media.

"But they said they're closer than they were this morning," Khim said last night.

Matson's contract with the three unions expired Thursday night, but both sides agreed to resume talks yesterday.

Union members voted last week to authorize a strike, a move that is intended to give the workers leverage in their negotiations with the company.

Matson, a subsidiary of Alexander & Baldwin Inc., provides a critical service to the Islands. The state's largest trans-Pacific shipping company carries nearly 80 percent of all goods sold here that arrive via container ship.

Under the old contract, an MM&P captain earned an average of $220,000, according to Matson. An MM&P chief mate earned about $176,000 a year, according to Matson.