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The Honolulu Advertiser
Posted on: Tuesday, June 17, 2008

STRIKE AUTHORIZATION
Matson union gives authorization to strike

By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Matson, the state's largest shipping company, carries about two-thirds of the containerized freight shipped here. A contract between Matson and the Sailors Union of the Pacific expires at the end of June.

ADVERTISER LIBRARY PHOTO | September 2006

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Unionized crew members who work aboard Matson's trans-Pacific cargo ships authorized their union to call a strike, a move that has the potential to disrupt Hawai'i's largest cargo lifeline.

About 200 members of the Sailors Union of the Pacific who work in Hawai'i voted "overwhelmingly" in favor of the strike authorization yesterday, a move that is intended to give the workers leverage in their contract negotiations with the company.

The contract between Matson and the union expires at the end of June.

Matson is the state's largest shipping company, carrying about two-thirds of the containerized freight shipped to Hawai'i. About 80 percent of all goods sold in Hawai'i come via ship.

Matson spokesman Jeff Hull said the company is in active negotiations with the union but declined to discuss any details of the issues. He said the company does not comment on "good-faith negotiations" and the contract does not expire until June 30.

Charles Khim, an attorney for the union, declined to discuss contract sticking points because of the sensitive nature of the negotiations. He said the members are hopeful that an agreement will be reached.

"At this time, a strike can be avoided," Khim said. "It is not the intent of the Sailors Union to tie up Hawai'i. We hope that Matson feels the same way."

Khim said the other members of the 4,000-strong union who work on the Mainland earlier voted in favor of a strike authorization.

The union is made up of sailors that work in the deck, engine and steward's departments in U.S.-flag vessels. Typically, Khim said about 10 sailors would be on board a container ship on voyage from the Mainland.

The union's national president, Gunnar Lundeborg, was in Honolulu for the vote. He confirmed that there had been negotiations as recently as last week but referred all other questions to Khim.

The union's headquarters is in San Francisco with branch offices in Honolulu, Seattle and Wilmington, Calif. The sailors union also has an office in Norfolk, Va.

Khim said the current contract went into effect in 2002 and was extended in 2003 until this year. He said an interim extension is possible.

Asked about the state of the economy and skyrocketing price of fuel, Khim said Matson's recent fuel surcharges have allowed the company to continue to make a profit. He said the company's first-quarter earnings were up at a time that the company usually cycles down.

Matson is a wholly owned subsidiary of Alexander & Baldwin Inc.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.