1 - American Memory

other Solutiontf
Any suggested solution must take Into account the unique Insular position of
Hawaii. No other state must depend almost completely on one mode of trans-
portation and one carrier. In all other states, even if there Is a major transporta-
tion strike, supplies keep moving by alternate methods of transportation. For
example. If railroads are struck, barges, coastwide shipping, and trucks are avail-
able. Given Hawaii's unique situation, it seems inappropriate to attempt to apply
mainland collective bargaining procedures and practices and still expect the
Islands to run on an even keel when all of Its sources of supply are almost com-
pletely cut off. As we have seen, a stockpile approach cannot supply all the econ-
omy's needs.
One possible solution—which might dramatize and thus lead to more basic
changes—would be the creation of a Labor-Management-Consumer Board which
would be charged with the responsibility of estimating the likelihood and duration
of strikes. It would be expected to make recommendations to the business com-
munity on how much additional inventory should be carried. Its recommenda-
tions, of course, would be a public announcement that Inventories should be in-
creased, that inventory carrying costs will be Increased, and that therefore prlce»
will be raised. This approach would dramatize the fact that the whole state-
not just Matson and the unions—is affected by strikes.
This suggestion is not endorsed by the author because an extremely difficult
task would be imposed upon such a Board. Many of the strikes which affect
Hawaii are due to grievances between labor and management groups which are
controlled by any Hawaiian Interests. National and International unions are
faced against a management group—the Pacific Maritime Association—which
Is concerned with shipping In the whole Pacific area, not just to Hawaii. Further,
the approach, like the stockpile approach, does not get at the cause of the problem.
The only real solution the author sees is (1) for the Hawaiian people to
recognize that they are In a imlque position which calls for measures which
might not be necessary on the mainland and (2) to act accordingly. Specifically,
they should realize that they are already paying a premium—higher retail
prices—for (1) their sanctioning unions' right to strike and (2) the Irregular
delivery schedules being maintained by Matson. Further, they should realize
that building Inventories before and during strike threats adds further to costs
and prices. With this understanding, they might Instruct their representatives
to work toward a basic solution to the problem rather than a remedy, which Is
what stockpiling would be.
A basic solution would entail keeping supplies moving, perhaps with govern-
ment-chartered vessels In the time of strike threats, or legislation which treated
Matson like a public utility and prohibited anyone interrupting shipping. Dis-
cussion of these possible solutions is beyond the scope of this study, but some
such solution seems the only possibility in the face of this unique situation.
The Hawaiian economy is an Integral part of the United States economy and
cannot sever all connections for long and still remain healthy.
m
StrUFACE CABOO SHIPMEKTrS AND CAROO CARBTINO POTENTIAL OT AlKUNES
SEBVING HAWAII
What Is the present level of cargo shipments to Hawaii? How much cargo
would be affected by a stoppage of U.S. flag ships? Mr. Wesley H. Hlllendahl,
Vice President, Bank of Hawaii has made the following summary of cargo
shipments to Hawaii showing foreign and U.S. mainland Imports.
It Is as.sumed that a stoppage would primarily affect the U.S. flag line's activity
between Hawaii and the West Coast including Canada. Presumably, bulk ship-
ments of petroleum products and foreign shipments other than Canadian would
not be affected. It Is not known If barge shipments (primarily lumber and con-
struction materials from the Northwest) will be affected. Presumably military
cargoes would not be affected (roughly a potential total of a tenth of all cargo
If they Import goods to supply post exchanges).
AsRiimlng 10.000 weight tons to a ship, the effect of a strike Is as follows (based
on 1967 Imports) :
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