1 - American Memory

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and warehouse space would be used up within a few weeks. This would necessi-
tate temporary storage outside with the contingent problems of whether hazard
and pilferage. A stoppage of flow of canned pineapple to the mainland would also
affect the industry's summer sales promotion.
Food stores also have varied inventory periods and while certain items may
have been stockpiled, fresh produce and meats would not be as plentiful. Food
suppliers for restaurants would also feel the impact of a shipping storage. While
certain meats and produce could be air freighted, there would be additional costs
involved.
The travel industry would feel the impact both in terms of possible cancella-
tions by tourist groups and also in delays of completion of new hotels scheduled
for opening this summer. Occupancy rates in Hawaii are generally lower at pres-
ent and the industry has launched an intensive campaign to boost travel to
Hawaii. A shipping strike would add a negative factor to the total effort.
The impact on employment will be immediate. The retail stores will start
layoffs as soon as the shipping strike occurs. History has shown that the con-
sumers tighten their purse strings as soon as announcement Is made of any
interference with normal shipping patterns and this immediately affects pur-
chasing in retail stores. So the stores protect themselves by initiating Imme-
diate layoffs of personnel.
Businesses involved in the unloading, loading, and trucking of items from
the docks to the warehouses would be immediately affected by a stoppage of
work. During the West Coast container boycott earlier this year, the trucking
industry had to lay off about 160 employees because there was no work
available.
It would seem In general that overall there would be no great Impact in
terms of shortages, delays, etc. for about 30 days perhaps 45 days. There will
be certain items which will become short within a period of two weeks.
While a strike may not occur, there will still be a definite impact to be felt
by the people In Hawaii. The need to stockpile and have Inventory on hand
beyond the normal level and the need to rent warehouse space and the allow-
ance for spoilage and pilferage will be reflected In the prices of these items.
The amount of money tied up In Inventory at high interest rates further add
to the cost of goods.
STATEMENT OF EDMUND J. FLYNN, PBESIDEKT, PACIFIC MARITIME ASSOCIATION
Pacific Maritime Association is a non-profit corporation, having a membership
comprised of 12 American Flag Steamship Companies, 4 of whom operate under
Pacific Maritime Association West Coast Contracts, 44 Foreign Flag Steamship
Companies, and 78 Stevedoring and Terminal Companies.
The principal office of the Association is In San Francisco. Area offices are
maintained in Wilmington, California, for Los Angeles-Long Beach, in San Fran-
cisco, in Portland, Oregon, and in Seattle, Washington.
The present Association was incorporated in 1949, as successor to the Water-
front Employers of the Pacific Coast and the Pacific American Shipowners'
Association, which had been in business for many years as bargaining representa-
tives of on.shore and offshore maritime employers on the Pacific Coast.
The Association exists to negotiate and administer collective bargaining
agreements with various maritime unions. Beginning in 1934, following the
general strike in San Francisco, the coastwide pattern for bargaining was
established by governmental direction. As a result, a single "Master Contract"
between the Association and the International Longshoremen's and Warehouse-
men's Union covers all cargo handling in all Pacific Coast ports from Mexico to
the Canadian border. The same International Union has contracts with other
maritime employer groups in the States of Hawaii and Alaska. Similarly, "master
contracts" exist between the Association and each of the following unions, cover-
ing shipboard personnel on practically all American Flag vessels headquartered
on the Pacific Coast:
Masters, Mates and Pilots (licensed deck officers).
Maritime Engineers' Beneficial Assn. (licensed engineers).
American Radio Association (radio officers),
Marine Staff Officers Assn. (pursers).
Sailors'Union of the Pacific (unlicensed deck),
Marine Firemen's Union (unlicensed engine).
Marine Cooks and Stewards (cooks and stewards),