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REPORT PAGE2 Jurisdiction and Technology Updates J u r i s d i c t i o n I s s u e s the issues were either resolved The USMX-ILA Jurisdiction Committee has been very active since the recent Master Contract extension was implemented. During the extension negotiations a commitment was made for the joint Committee to visit any port where resolution of jurisdictional issues had not been successful. Language was written into the extension agreement that strengthened the power of the Committee and acknowledgment that the decision of the Committee was final and binding and enforceable in a Court of Law. The Committee recently visited Mobile, Baltimore, Hampton Roads, Philadelphia and Savaimah. With the exception of Hampton Roads, by the Committee or the local parties (Management and Labor) reached an agreement on their own. The Hampton Roads case is a little more complex. The Juris- diction Committee visited Hampton Roads to hear issues involving clerical jurisdiction, maintenance and major damage, and maiming levels on a dom- estic barge operation. After the meeting was in progress for approximately one hour, the local Management group re- quested a caucus. Upon their return, the Management group requested a 30-day morator- ium so the local parties could enter negotiations to reach agreement on the issues by themselves. As of this writing, the parties have met several times and have not been able Port of Discovery Arbitration Update from Counsel On 5-20-09, US District Judge Faith S. Hochberg granted NYSA's motion to vacate the 4-16-08 Arbitration Award by Arbitrator John E. Sands that had held Article IX of the Master Contract of USMX and the ILA applies to loaded containers with major damage. As a result of Judge Hochberg's decision, loaded containers are proceeding without delay in accordance with their bills of lading and pursuant to an industry practice that has been in effect for over 20 years. Management had also sought a declaratol~ judgment that the liquidated-damages provision ($1,000 or $2,000, depending upon willfulness) in Article IX, section 4 of the Master ConU-act is an invalid, unenforceable penalty that is contrary to public policy. Since the parties disputed a number of material facts with respect to these two conditions, the court found NYSA's second cause of action unsuitable for summary judgment at that time. On 6-2-09, Local 1804-1 filed a motion for an order directing entry of final judgment as to NYSA's first cause of action vacating the Arbitration Award, so that it couldpurs~ its appeal of Judge Hochb~'s (see PORT OF DISCOVERY, Page 3) to reach an agreement. It is our understanding that the joint Committee will be returning to Hampton Roads in the very near future and will stay until all issues are resolved. Technology Issues USMX participated as an observer during the Hanjin/ ILA meetings concerning the proposed Hanjin automated facility in Jacksonville. The first meeting was held in Houston in August of 2009 and a two-day follow-up meeting was held in Holly- wood, Florida in January of this year. In the January meeting, the parties agreed to a maiming level for the new facility. It was understood by both parties that this tentative agreement would be put in writing by the attorneys for Hanjin and the ILA. It was also understood that the legal agreement would have to be approved by the District, Local Jacksonville Unions, and the Hanjin Board. That process is underway as of this date. We remind all USMX Members that we are avail- able to work with you and act as a sounding board for all of your technology projects.

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