Seattle port warns staff of possible cuts

Seattle port warns staff of possible cuts The Port of Seattle has warned staff that continued declines in the port's container volumes could force wage freezes, unpaid furloughs staff layoffs.
   While no formal decisions on cuts have yet been made, port Chief Executive Tay Yoshitani reportedly met with port managers and staff union leaders Wednesday to warn of the possibilities.
   The port has experienced severe box volume declines in recent months, with double-digit monthly declines during each of the last six months of 2008 and culminating in a 27.6 percent drop for December. According to port numbers released last week, the port suffered a 13.6 percent drop in total box volumes during 2008 compared to the previous year.
   Seattle port officials have said more than a quarter of the lost volumes could be attributed to the defection of tenant MOL to the Port of Tacoma last year and the loss of some COSCO service to the Prince Rupert port in Canada.
   Predications by Seattle port officials foresee box volumes falling another 5 percent to 10 percent in 2009, depending on how much further the national economy deteriorates.
   In December, the port approved an $871 million budget and organization plan for 2009, described by port officials as a 'belt tightening.' In approving the budget, port officials said, 'Tough economic times call for tough decisions,' including about $11 million in cuts and savings through frozen employee positions.
   The 2009 budget represents a total of $14.1 million in reductions, or 1.6 percent, compared to the $885 million 2008 budget.
   The port, which also operates the Seattle-Tacoma International Airport, decided to freeze just under 110 unfilled positions in the port authority's workforce of 1,790 employees. The freeze was expected to save the port $2 million in 2009, though this is likely to be offset by an estimated $2 million increase in health care premiums for existing workers.