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Just-in-time inventory system proves vulnerable to labor strife

Los Angeles Business Journal, Oct 7, 2002 by David Greenberg

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* Hasn't staged strike since 1971. Lack of experience might make it vulnerable to strike breakers.

* ILWU officials say there is only $2 million in strike fund, which won't last long.

Pacific Maritime Association

Strengths

* Has Bush administration on its side with threats of invoking Taft-Hartley.

* Has backing from shipping companies to stand firm on technology issue. Members caved to union demands to avoid strikes in previous contract talks.

* Lockouts can be executed by order of PMA, while strike requires vote that would take weeks to implement.

* Took out a $200 million line of credit in January to weather the labor storm.

More Articles of Interest: Just In Time - Industry Trend or Event; just-in-time inventory effect: Does it hold under different contextual,...; Companies with just-in-time inventory plans are likely to be hit hardest by...; The problem with JIT.(just-in-time inventory systems); JIT tops management practices.(just in time)(Brief article)

Weaknesses

* Taft-Hartley does not negate protracted strike, which happened when the union walked off the job in 1971 for more than 100 days despite federal intervention.

* Lack of unity. Shipping and stevedore companies are in competition with each other.

* Has history of caving into union demands.

Business Services Industry

Just-in-time inventory system proves vulnerable to labor strife

Los Angeles Business Journal, Oct 7, 2002 by David Greenberg

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