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We have been told by various ofScials that Hawaii's sltnation while "unfor-
tunate" does not constitute a threat to the health and welfare of the nation and
therefore does not constitute an emergency under the Taft-Hartley law. Invents
bear this out in the present situation in that the emergency provisions were not
invoked in the West Coast dock strike until after the East and Gulf Coast long-
shoremen walked out.
It is apparent, therefore, that if Hawaii is to receive any relief, we must look
to changes In the present legislation or to new legislation. Senate Bill 2836 would
specifically help Hawaii, provided it is practical and workable, and I would like
to address some comments to areas in the proposed bill which appear to present
problems from the practical standpoint
1. Availability of ships.—Although I do not have specific figures on the number
of military cargo vessels available, it is my understanding that the military uses
private bottoms for most of its supplies. In the event of a strike by the offshore
unions who man the ships, there would probably be no American vessels which
would not be Involved In the labor dispute available for charter by the govern-
ment. It would appear to be necessary if any practical amount of shipping was to
be provided to make provision that the Jones Act be temporarily waived in the
case of supplying Hawaii so that the government might charter foreign bottoms
for the duration of the emergency.
Another avenue which is a possible source would be the use of Army tugs to
haul barges which would certainly be of help to the construction industry as these
barges could supply lumber and other construction material to keep this vital
industry moving.
2. Manninff.—The problem of loading and unloading these chartered vessels
with men other than stevedores, should the stevedoring unions be Involved, could
present a problem. Much of the equipment today is mechanized and requires
certain skills. I would urge the Committee to take the opportunity to view the
Matson or Seatraln operations while they are here in Hawaii and see how mecha-
nlEed the stevedoring operations have become.
3. Timing.—While Senate Bill 2836 does not go Into efTect until after 30 days
of a work stoppage, in my opinion, it is too long because of the time required in
chartering the ships, organizing the manning for loading and unloading, setting
up freight billing and handling arrangements. It would most likely take up to 60
days before emergency shipping could start, and as pointed out in previous testi-
mony, the impact on supplies in Hawaii would begin to be serious by the 60th
day.
4. Labor Relatioru Impact.—The thrust of this bill is to isolate the parties,
limit the economic warfare primarily to the parties involved In the dispute and
to minimize the Impact on third parties—the public and others who have no direct
control over the labor relations problem. Undoubtedly, the unions will oppose this
because it would minimize their power, limit the economic impact and therefore
reduce their power in their opinion. However, I would like to point out that this
bill, if passed, would not completely remove pressures on the parties from out-
side sources.
(a) Normal shipping supply lines would be broken causing tremendous inven-
tory problems. Increasing costs and limiting availability of supply to business and
Industry In Hawaii during the strike. They would not be at all content with the
emergency shipping provisions of Senate BUI 2836 and would continue to bring
pressure on the companies to settle their dispute.
(6) The shipping companies who hire the stevedores would be unhappy as
their revenue would be diverted to either the government or foreign bottoms if
the Jones Act were waived and they would continue to pressure for settlement.
(c) There would undoubtedly be increased costs from this method of freight
handling, and food costs in Hawaii which are dependent on mainland supply
would be increased so the public would not be entirely satisfied, but the main
benefit which Senate Bill 2836 would provide. In my opinion, would be (1) to
eliminate any critical shortage and (2) bring great pressure on the parties in-
volved In the maritime industry in Hawaii to settle their differences without
resorting to a strike.
I appreciate the opportunity given me to testify before this Committee.
Tliank you very much.
• • •
THE IMPACT OF SHIPPIWO INTEERUPTIONS ON HAWAH
No other state (except Alaska) must depend almost completely on a single
mode of transportation—shipping—for movement of its goods and supplies. In