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R E P O R T PA G E 6 Management-ILA Managed Healthcare Trust Fund Update During Calendar Year 2009, the industry experienced a significant reduction in tonnage, resulting in a decrease in overall manhours. This reduction led to an 18% decline in revenue to MILA; however, as a result of a tightly-monitored benefits program and better than antici- pated returns on its investments, MILA was still able to contribute positively to its reserves. The recent Contract Extension provided the industry with the ability to decrease the amount of contributions made to MILA to help weather the current economic storm. Based on a recent review of the first quar- ter of 2010, it appears that with a reasonable return on its investments, and tonnage and manhours continuing at first quarter levels, MILA will be able to continue operating at a fully funded level. We are all aware of the fact that providing affordable healthcare is one of the most serious problems our country faces today. In the collective bargaining arena, it is always one of the primary considerations on both sides. MILA, since its inception, has provided high quality care for its ILA members while controlling costs to the i n d u s t r y. Civil RICO Case Criminal Investigation in Port of New York & New Jersey The longshore industry is the subject of intense scrutiny by a task force of federal and state law enforcement agencies. Two grand juries have been empanel- led: one by the United States Attorney for the Eastern District of New York and the other by the Attorney General of the State of New Jersey. In addition, the Waterfront Commission has embarked on its own widespread investigation that seems to be coordinated with the two grand- jury investigations. After months of rumors swirling around the Port of New York and New Jersey that the government was about to hand up indictments concerning payoffs related to container royalty benefits, on April 22, 2010, five individuals were arrested in connection with an ongoing investigation by the New Jersey Division of Criminal Justice and the Waterfront Commission of NY Harbor. The five individuals, who include the secretary-treasurer of ILA Warehouse Local 1478-2 in Newark, a chief timekeeper, and two checkers, are charged with extortion and commercial bribery. According to the Government, ILA members working at piers in New Jersey were required to make cash payments each Christmas out of their Container Royalty benefits to get better shifts, more overtime or higher paying jobs. An alleged captain in the Genovese family has been indicted in the federal court in the Eastern District of NY. Government papers filed in support of his arrest warrant accused him of being the mastermind of the container- royalty racket. The investiga- tions are ongoing. Longshore workers, hiring agents and shop stewards are being subpoenaed almost daily. More indictments are expected. Despite the passage of another year, there is no new news. As we reported in 2008, Judge I. Leo Glasser is still considering MILA's motion filed on 2-11-08, to dismiss the Government's complaint against MILA with prejudice, since MILA did not share in any way in the purposes of the alleged RICO Waterfront Enterprise. We are at a loss to explain why Judge Glasser has allowed almost two years to lapse in deciding the motion. The reason for the delay may lie in the Government's failure to adhere to Glasser's 2007 decision dismissing the first complaint in which the judge strongly intimated that MILA and the other institutional defendants should be dismissed. Another possible reason for the delay may be the ongoing criminal investigations in the Port of New York and New Jersey.

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