NEW YORK (CNN/Money) - The union representing West Coast port workers has broken off talks for the next two-and-a-weeks, pushing a resumption of talks into the middle of the peak shipping season.

The International Longshore and Warehouse Union officials insists the move is because of a need for a break after weeks of talks before and after the July 1 contract expiration. The contract has been extended on a day-to-day basis since July 1, and will continue to be extended until the talks resume, according to union spokesman Steve Stallone.

ILWU members at a rally in San Francisco Wednesday. The union, which represents 10,500 longshore workers and clerks, has said it won't return to negotiating table until Aug. 13.

"It (the break in talks) is because everyone is burned out and needs a break," said Stallone. "I don't see how the delay helps our leverage. We're breaking records (for shipments) every month for the last three months down in LA. Why would next month be any better (for a work stoppage) than this month?"

The union also announced that its delegates had authorized its negotiating committee to seek a strike authorization vote by membership, rather than having to have the more than 80 delegates reconvene to seek such authority.

The delay in talks and the change in the strike authorization process was troubling to the Pacific Maritime Association, the management group that includes ship lines and port terminal operators.

"Delay will not bring us any closer to an agreement and resolution of issues addressing competitiveness and security of the waterfront," said a statement from PMA President Joseph Miniace. "It will only cause uncertainty for our economy and for the millions of U.S. workers whose jobs depend on West Coast trade. The delegation of authority to call a strike is a threat to an already fragile economy."

If there is a work stoppage it is expected to cost the U.S. economy an estimated $1 billion a day, and choke off much of the trade between the nation and its Asian trading partners.

Robin Lanier, executive director of the West Coast Waterfront Coalition, which represents major U.S. importers and exporters, said that the group is also disappointed by the break in talks.

"We're not terribly happy about the news. It seemed like they were actually making some progress when they were facing a deadline," she said. "The two sides are far apart on issues, but they're not as far apart as they were July 1. Taking a breather is very concerning. It just adds to the angst that folks have."

Lanier said the peak shipping season for goods needed for the holiday shipping season starts Aug. 1.

"I don't want to speculate on their motives," she said when asked if this was a move by the union to increase pressure on management. "But whatever the motivating factor, the fact is the farther you get into peak season, more people are concerned, especially when you don't see the two sides at table."

The two sides have not held talks since Sunday, when the union side recessed talks in order to hold a pre-scheduled caucus with more than 80 delegates who represent the 10,500 members. That caucus unanimously rejected management's most recent offer in a voice vote, but the vote was not a surprise, and management had assumed the two sides would be returning to the table either this weekend or early next week.

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Lanier said that as long as the two sides continue to delay the contract, she's hopeful there will be no disruption in the flow of freight across the docks.

The union has not struck since 1971, but during the last two contract talks, in 1996 and 1999, management charged that the union engaged in work slowdowns, a tactic that PMA officials refer to as "a strike with pay." The slowdown charge is denied by the union, but if the contract is allowed to expire, management's ability to contest any alleged slowdown through arbitration disappears.

Because of that, the PMA has vowed to lock out the union if it sees any evidence of slowdowns. If that happens, President Bush is expected to order the two sides back to work, but such an order is only in force for 80 days, and unlike the case of railroad or airline strikes, the federal government has no ability to impose a long-term solution to any labor dispute.