The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association is due to expire June 30 and the threat of a West Coast longshoreman strike has many supply chain executives more than a little concerned.

At issue in the contract talks is the use of new technology that may eliminate some union jobs while helping turn the Los Angeles/Long Beach port complex into a more modern facility to keep up with the increasing demand for Asian products. According to a statement from PMA, the group "will seek agreement with the union on cooperative programs to implement modern workplace practices that will increase productivity and reduce mounting congestion resulting from cargo growth."

Union officials said they're not opposed to new technology but want members retrained and jobs kept on site. Many shippers are arranging alternative transport routes through ports in Western Canada and Mexico, and even through the Panama Canal to ports on the eastern seaboard.

dhannon@cahners.com