Bush: reluctant to annoy unions before the November elections

Talks broke down on Sunday night between management and unions, leaving the dispute in full flow at an estimated cost to the US economy of $1bn a day and incalculable cost to Asian exporters reliant on US markets.

The White House announced on Monday that it was convening a fact-finding board of inquiry, the first step necessary before the administration can order the dockers back to work.

"Out of concern for the economy and jobs, the president this morning signed an executive order to create a board of inquiry," said White House spokesman Ari Fleischer.

The inquiry is likely to take a week.

Election backlash?

After that, it is up to the White House to convince a federal judge that the dispute would "imperil the national health or safety".

The longer the parties are unable to come to an agreement, the bigger the damage to the economy down the line... That's not fair

Ari Fleischer White House spokesman

If the judge agrees, the President can force the ports, and the 10,500 members of the International Longshore and Warehouse Association currently locked out, back to work for up to 80 days.

Until now the administration has wanted to avoid stepping in, for fear that a union backlash could harm Republican candidates in November's Congressional elections.

Different opinions

The dispute started when management locked workers out, complaining that they were slowing down cargo handling by working strictly to safety rules.

They also say unions are refusing to accept modernisation of the 29 West Coast ports, which - unlike their eastern seaboard equivalents - still use paper trails, rather than electronic systems, to track containers.

The unions, on the other hand, say they are simply responding to management neglect of safety issues.

Federally appointed mediators threw in the towel on Sunday, saying that "no progress was achievable in the next few days."

With that in mind, the White House's Mr Fleischer told reporters, the inquiry was the logical step.

The move did not mean an order to reopen would automatically follow, he said.

But he went on: "The longer the parties are unable to come to an agreement, the bigger the damage to the economy down the line.

"That's not fair."