Ports shutdown costs US $2bn a day
After the International Longshore and Warehouse Union rejected the offer, talks broke off indefinitely, said Steve Sugerman, a spokesman for the Pacific Maritime Association.
"The PMA presented a comprehensive proposal to the longshore union, which would have made their members the highest-paid blue-collar workers in America," Mr Sugerman said.
The Pacific Maritime Association, which represents shipping companies and terminal operators, has locked out 10,500 members of the longshoremen's union, claiming the dockworkers had engaged in a slowdown late last month.
The association ordered the lockout until the union agrees to extend a contract that expired on July 1. The main issues are pensions and other benefits and whether jobs created by new technology will be unionised.
The lockout entered its second week yesterday, with the number of cargo vessels stranded at West Coast docks or backing up at anchor points rising to 200. Dozens were still en route from Asia.
Analysts and business leaders have warned the shutdown will cause a noticeable increase in plant closings, job losses and financial market turmoil. Experts estimate the shutdown could cost the US economy up to $2bn a day.
As part of the contract offer, union members would have received an increase in pay, complete health care coverage with no premiums and no deductibles and a $1bn increase to the union's pension plan.
A growing number of industry groups are calling for White House intervention.
President George W Bush hasn't said whether he would step in.
Already, storage facilities at beef, pork and poultry processing plants across the country are full crammed with produce that can't be exported.
With nowhere to move their product, plant operators were expected to begin shutting down yesterday, with lay-offs soon to follow.
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