1 - American Memory

14
Recent West Coast strikes have proved highly injurious to Hawaii's people
and economic health. For 179 days between July 1,1971 and the end of 1972—six
months out of 18, or one day out of every three—non-military shipping between
Hawaii and the West Coast was shut down by longshore and maritime strikes.
For 134 days during that period, a West Coast longshore dispute closed all ports
In Washington, Oregon and California.
As a direct result, thousands of workers in Hawaii across a broad spectrum
of enterprises were laid oflf or placed on shortened workweeks. Unemployment
rose to 6.5 per cent in February 1972, the highest point in Hawaii's history as a
State.
Prices rose precipitously because of shortages and added air freight costs.
Even with the Phase I wage-price freeze that began August 14, 1971, Honolulu
food prices climbed 4.5 per cent between June and October, while nationwide
food prices actually declined 0.3 per cent. By February 1072—after 115 cumula-
tive days of strike and despite relief through an 80-day Taft-Hartley injunction
and two voluntary extensions—a head of lettuce cost 72 cents, a dozen oranges
$1.46, and 10 pounds of potatoes $2.28 on the average.
Savings were depleted. Residential and commercial construction slowed. Fed-
eral and State tax collections dropped, and many businesses, unable to resupply,
closed their doors forever.
Shipping tieups also have ."serious long-range repercussions on the State of
Hawaii. The principal impact is to make it more diflBcult to attract investment
capital. For the last twenty years or more, the economic growth of Hawaii has
been financed in large measure by capital attracted from outside the State.
This Is true for three reasons: The first is that even if most savings of Hawaii
residents were kept in liquid form and invested locally, our rate of growth has
been such that such funds would be inadequate. The second reason is that more
and more savings of Hawaii residents are in fact being funneled into U.S. Main-
land Institutions, such as insurance companies, mutual funds, the stock and
bond market, and so on. Third, more and more of Hawaii business enterprise is
owned by out-of-state coriwrations. so that profits made in Hawaii are not always
reinvested locally but are returned to a home office located on the U.S. Mainland
or in a foreign country.
Personal savings and business profits, therefore, tend to flow out of Hawaii,
and the economic development of the State depends upon local ability to attract
outside investment funds. Naturally the capacity to attract such funds is dealt
a severe setback when a transportation shutdown shakes investor confidence.
Also, and very Importantly, shipping strikes imperil or destroy markets for
Hawaii's export industries. The primary market for Hawaiian sugar, for in-
stance, is in the Western States, where sugar is already In surplus. In the past,
the Hawaii sugar producers have lost Important industrial customers because
maritime and longshore disputes have interrupted normal shipments and turned
customers to other sources of supply.
The salt in the wound when Hawaii suffers from a West Coast shipping tieup,
however, lies in the fact that such disputes do not originate in Hawaii, have
no participants in Hawaii, and are remote from any direct Influence which might
be exerted by our local labor unions and management and the people of Hawaii
Hawaii's traditional role has therefore lieen to become the hostage of such far-
away disputes.
The Hawaii exemption legislation under consideration by this SulK-ommlt-
tee quite consciously avoids dealing with strikes and lockouts in Hawaii itself.
These local disputes involving our own labor unions and management are sub-
ject to Hawaii statutory remedies and to direct influence from public opinion
within the State. Like every other State, we in Hawaii will continue to cope
with work stoppages within our own borders.
The exemption provided in this bill would assure a secure ocean lifeline for
Hawaii and the U.S. Pacific islands. Yet the Impact of the exemption would
be very minimal on the parties to a West Coast longshore or maritime dispute.
An exemption for Hawaii would involve only a small fraction of the number
of longshore hours worked on the West Coast. A recent study Indicates that
approximately 3 per cent of all man-hours worked at West Coast ports was
exi)ended on the handling of cargoes originating nt nr destined for Hawaiian
ports. By adding Guam, American Samoa and the Trust Territory of the Pacific
Islands, this figure is increased to only about SH per cent. Of the shipi)oard
labor with West Coast contracts, only about 7.3 per cent of the total man-days
worked would be Involved.