SC International Trade Conference James A. Capo ChairmanCEO

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SC InternationalTrade ConferenceJames A.
CapoChairman/CEO
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Bargaining History on the East and Gulf Coasts

• In 1957 North Atlantic Ports agree to Contract
  with ILA covering Five Issues
  
• Wages
• Hours
• Pension Contributions
• Welfare Contributions
• Term of Agreement
• ILA wants all ports covered from Maine to Texas

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Period from 1957 to 1977CHAOTIC!

• Different Management groups NYSA, CONASA, etc.
• South Atlantic and West Gulf dontparticipate
• NLRB Charges
• Strikes-different ports, different duration
• Taft Hartley injunctions

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Period from 1977 to 1990

• Things begin to level out
• Containerization agreement
• Jurisdiction
• JSP
• Carriers become more of a force

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1990 - 1997

• 1990 - Carriers Container Council, Inc. assumes
  role as lead negotiator for Management. All
  management groups are still not bound
  
• 1996 All management groups agree to participate
  and agree to be bound by terms and conditions
  (informal alliance)
  
• 1997 United States Maritime Alliance, Ltd.
  (USMX) incorporated. Formal organization of
  Carriers, Stevedores, Terminal Operators and
  Port Associations

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Current Master Contract

• Covers every ILA Port from Maine to Texas
• 95 of containerized cargo handled by USMX
  carriers and terminal operators in Master
  Contract ports
  
• Over 100 million tons handled in most recent
  Master Contract year
  

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Current Master Contractcontinued

• National Health Care Plan (MILA) offers uniform
  benefits to 60,000 longshore employees,
  dependents, and retirees
  
• Master Contract allocates container royalty
  benefits among ILA ports to protect benefits in
  every port
  
• Covers almost every major contract term for all
  ILA crafts
  
• Determines amount of contributions to local funds

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Objectives of USMX

• Determine all questions of basic policy with
  respect to negotiation, implementation, and
  administration of the terms and conditions of
  collective bargaining agreements with the ILA
• Determine all questions of basic policy with
  respect to the administration of employee benefit
  funds which are funded by members of USMX
  
• Act as Chief Management Representative in Master
  Contract bargaining

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USMX MembershipCarriers

• APL, Ltd.Atlantic Container LineCMA/CGM
  (America), Inc.CCNIChina Shipping (North
  America) Holding Co. Ltd.Columbia Coastal
  TransportCOSCO Container Lines Americas,
  Inc.Evergreen America Corporation
• Hamburg Sud North America, Inc.Hanjin Shipping
  Company, Ltd.

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Carriers continued

• Hapag-Lloyd (America), Inc.
• Horizon Lines, LLCItalia Marittima America
  CorporationK Line America, as agents for
  Kawasaki Kisen
  
• Kaisha, Ltd.Maersk, Inc.
• Mediterranean Shipping Company SA
• MOL (America) Inc.
• NYK Line (North America), Inc.

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Carriers continued

• OOCL (USA), Inc.Turkon America, Inc.United
  Arab Shipping Company
  
• Wallenius Wilhelmsen Lines AmericasYang Ming
  (America) Corp.Zim American Intergrated Shipping
  Services Co., Inc.

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Terminal Operators

• APM Terminals, Inc.
• Ceres Terminals Incorporated
• CPO, LLC
• Global Terminal Container Services, Inc.
• Maher Terminals, Inc.
• Marine Terminals Corporation East
• Ports America, Inc.
• R.O.White Co., Inc.
• SSA/Cooper, LLC

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Ports Associations

• Boston Shipping Association
• Georgia Stevedore Association
• Hampton Roads Shipping Association
• Jacksonville Maritime Association, Inc.
• Midgulf Association of Stevedores, Inc.
• New York Shipping Association, Inc.
• Ports of Delaware River Marine Trade Association
• South Carolina Stevedores Association
• Southeast Florida Employers Port Association,
  Inc.
  
• Steamship Trade Association of Baltimore, Inc.
• West Gulf Maritime Association

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USMX

• Headquarters in Iselin, New Jersey
• Six employees in New Jersey location
• Two employees in regional office in Savannah,
  Georgia
  
• Funded by carrier assessment of five cents per
  ton. Ports Associations and Terminal Operators
  pay an annual stipend of 5000

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Interaction between USMX and ILA

• Serve as trustees on a number of jointly
  administered fundsManaged Care Health Care
  Fund (MILA)
  
• Container Freight Station FundCarrier-ILA
  Container Royalty Fund
  
• Industry Resource Committee (IRC)
• Established in 1994
• Top representatives from each side
• Meet regularly throughout the year
• Discuss wide range of issues of interest to both
  partiesProblem solvingSounding board
  

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Next Contract

• Current contract expires in 2010
• Recent history of mutual interest rather than
  confrontational bargaining
  
• Result has been long term labor stability
• Look to continue with the same approach going
  forward
  

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Charlestons Future

• Good water access
• Convenient rail and highway access
• Growing population centersAtlantaCharlotte
• Room for expansion

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Charlestons FutureContinued

• Dependent on the ability of all the various
  segments of the private and public partnership to
  work together.