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4 2 0 1 5 A N N U A L R E P O R T As our implementation of the latest Master Contract be tween USMX and the ILA continued in 2015, the issues facing the labor relations de- partment were challenging but not entirely unexpected. Local bargaining, chassis, South Atlantic maintenance and repair, and implementation of new technology in USMX member ports continue as our main topics of focus. PORT UPDATES Boston • During the last round of bargaining, the new local collective bargaining agreement included a production incentive agreement that was designed to increase productivity in the Port of Boston (for further details, please see Port Association Summaries, Page 26). New York/New Jersey • Productivity in the Port of New York and New Jersey is slowly coming up and improvements can be seen. In 2015, the labor force was bolstered to a level where basic programs to improve operations were able to be imple - mented (for further details, please see Port Association Summaries, Page 28). • New technology continues to be implemented by our terminal operator members in the Port of NY/NJ. • Implementation of the "gray pool" chassis concept is still under discussion in 2015, with no resolution as 2016 approaches. Philadelphia • Manhours increased in contract year 2015, initiating a need for addi- tional trained and skilled labor, and resulting in roughly 300 physicals for new employees (for further details, please see Port Association Summaries, Page 30). • Proposed implementation of new gate technology was announced, result - ing in a union request for a visit by the ILA-USMX Joint Technology Com- mittee. As of the end of 2015, no committee visit had taken place. • A jurisdiction issue involving deep sea workers vs. warehouse workers was raised by the union in late 2015, but the matter had not been heard by the ILA-USMX Joint Jurisdiction Committee by year's end. Baltimore • The Port's local contract was ratified in March of 2015. • 2015 was a record year for containers handled at the public marine termi- nals in Baltimore (for further details, please see Port Association Summaries, Page 32). Baltimore (continued) • The trusteeship of Local 333 imposed by the ILA International in 2014, helped bring labor stability to the Port in 2015. • The ILA-USMX Joint Jurisdiction Committee was dispatched to investigate possible violations of a committee ruling regarding maintenance and repair issues. Norfolk • In 2015, the Port of Hampton Roads saw a 1.8% increase in manhours (for further details, please see Port Association Summaries, Page 34). • Infrastructure technology improvements, including a new motor carrier gate and rail improvements, have been implemented to increase access and velocity of rail cargo. Wilmington, NC • Container traffic in the Port of Wilmington, NC continues to grow. Charleston • In local negotiations in the the Port of Charleston, a Saturday gate was negotiated to allow for continued operations from 0600 to 1300 (for further details, please see Port Association Summaries, Page 36). • Strike threats by Locals in Charleston over containerized and RO-RO cargo resulted in a two-day arbitration. The arbitrator ruled in favor of management and made it clear that with a ratified Master Contract, its "no-strike" clause was enforceable on a local level, regardless of the lack of a local agreement. Savannah • The Port of Savannah's Garden City Terminal handled 3.7 million TEUs during fiscal year 2015, representing a 17% increase over 2014 (for further details, please see Port Association Summaries, Page 38). • The union claimed that major damage and minor damage containers that were not being segregated and being loaded to a vessel was a violation of damage jurisdiction. The grievance was not heard during 2015. LABOR RELATIONS UPDATE

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