WHEREAS, the Labor Management Relations Act of 1947, 29 U.S.C. § 401-531, enacted June 23, 1947, better known as the Taft–Hartley Act, is a United States federal law that provides the President of the United States with the power to put people back to work during a labor dispute for a cooling off period by way of injunction; and

WHEREAS, the Taft-Hartley Act's intent includes that its purpose and policy is "...to promote the full flow of commerce, to prescribe the legitimate rights of both employees and employers in relations affecting commerce, ...and to protect the rights of the public in connection with labor disputes affecting commerce"; and

WHEREAS, the Taft-Hartley Act also provides that whenever, in the opinion of the President of the United States, a threatened or actual strike or lock-out affecting a substantial part of an industry engaged in trade will, if permitted to occur or continue, imperil the national health and safety, the President may appoint a board of inquiry (29 U.S.C. §176), and upon receiving a report may direct the Attorney General of the United States to petition a court to enjoin such strike or lock-out (29 U.S.C. §178) and then the parties have a duty to make every effort to adjust or settle their differences; and

WHEREAS, in May 2014 negotiations began between Pacific Maritime Association (PMA) representing the employers and International Longshore Warehouse Union (ILWU) representing the employees and on July 1, 2014, the “Coast Contract” terminated and the parties have been operating and working without a contract, and without a contract the parties are not obligated to attend arbitration; and

WHEREAS, on October 30, 2014, the ILWU began withholding certain skilled labor positions including machine operators which led to congestion in terminal operations, and as result the PMA gave notice that slowdown had begun, and on December 30, 2014, PMA members ended all night work loading and discharging as container yards had become congested; and

WHEREAS, on January 12, 2015, the PMA gave notice terminals approaching “brink of gridlock” and on January 19, 2015, the PMA cancelled all day work loading and discharging for one day, with work resuming on Tuesday, January 20^th, 2015; and

WHEREAS, on January 20, 2015, Seattle Terminal #18 operated by Stevedoring Services of America (SSA) terminated all afternoon work due the labor dispute and Matson Inc. is a 35% owner of SSA terminal; and

WHEREAS, on January 21, 2015, the Port of Los Angeles reported container terminals at 95 to 97% of capacity and 80% utilization is considered optimal before service degrades; and

WHEREAS, there are twenty-nine ports up and down the U.S. West Coast and 50% of all U.S. containerized freight passes through the U.S. West Coast ports; and

WHEREAS, the west coast freight represents 12.5% of the United State Gross Domestic Product (U.S. GDP) and a lock-out or strike would cost the U.S. economy $1 to 2 billion per day or over $2 trillion of economic impact to the nation; and

WHEREAS, west coast freight provides over 9 million jobs and is over half the trade in the United States; and

WHEREAS, there are many containerships at anchor in Los Angeles, San Francisco Bay and Seattle awaiting berth and Long Beach has had to increase the number of designated anchors; and

WHEREAS, on February 4, 2015, the President and Chief Executive Officer of the PMA, Jim McKenna, gave the employers’ first press conference since negotiations began in May 2014 for renewal of the “Coast Contract,” which expired on July 1, 2014, and said that with congestion at terminals increasing and low productivity there could be a gridlock at ports and a lock-out in five to 10 days; and

WHEREAS, the PMA has indicated the longshoremen typically currently average $147,000 per year, full health coverage of approximately $35,000 per year and pensions are $80,000 and the PMA has offered to increase average earnings to $160,000 per year, full health coverage at approximately $35,000 per year and a pension increase of 11% to $88,800 per year; and

WHEREAS, the ILWU has separate contracts in Hawaii and Alaska, which are typically negotiated after the Coast Contract is ratified; and

WHEREAS, a coast wide lock-out would mean a cessation of cargo movements through all United States west coast ports severely impacting Hawaii, Guam, Alaska and American Samoa; and

WHEREAS, American Samoa has not had a ship from the west coast in over one month; and

WHEREAS, local Hawaii stores are already feeling the effects of the slow down with shelves sparse and produce being disposed of because it is too spoiled to sell; and

WHEREAS, a lock-out may result in Hawaii receiving no west coast freight resulting in a lack of food and basic supplies and a huge disruption to the economy and severely impacting Hawaii's tourist sector; and

BE IT RESOLVED by the Senate of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2015, the House of Representatives concurring, that this body respectfully requests the President of the United States use his power under the Taft-Hartley Act to appoint a board, obtain a report, and put the parties back to work for a cooling off period by way of injunction; and

BE IT FURTHER RESOLVED that Hawaii's congressional delegation is urged to work individually with their colleagues from Hawaii, Alaska, Guam and Puerto Rico and all west coast states to use the power of their positions to encourage the President of the United States to act; and

BE IT FURTHER RESOLVED that Hawaii Governor David Ige is urged to write to the President of the United States and express how serious a lock-out will be for Hawaii in the short and long term and encourage the President of the United States to use his power under the Taft-Hartley Act and put the parties back to work in the west coast ports labor dispute; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, members of Hawaii's congressional delegation, members of Alaska, Guam, and Puerto Rico’s congressional delegations, and the Governors of Washington, Oregon, California, Alaska, Guam, Hawaii and Puerto Rico.

	OFFERED BY:	_____________________________

Report Title:

Shipping; trade; labor disputes; Request the President of the United States use his power under the Taft-Hartley Act to put the parties back to work for a cooling off period in the west coast ports labor dispute.

THE SENATE	S.C.R. NO.	20
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII