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2017 USMX ANNUAL REPORT

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4 2 0 1 7 A N N U A L R E P O R T MEMBER RELATIONS & GOVERNMENT AFFAIRS USMX MEMBER RELATIONS With a membership comprising various organizations that do business in ports along the Atlantic and Gulf coasts, it is vital that a common direction emanate from USMX and that items of strategic value be recognized and shared amongst the entities that comprise the membership. A strong and solid exchange of information and views amongst its members is necessary for USMX to operate successfully at a high level. To that end, several years ago, the USMX leadership made a decision to commence an outreach ini- tiative targeting its Port Association and Direct Employer members. This communication link has become a core component of USMX's mission to its constituents. Keeping its membership abreast of the latest issues within USMX and the maritime industry, maintaining alignment on the Master Contract and receiving input from its member organizations are viewed as essential components necessary to the success of USMX and its member organizations. COMMUNICATIONS LINK Communication is vital to the organization, with the backbone of the communications link being the day-to-day contact between the various departments of USMX and its members. Subjects discussed run the gamut from business area issues of the day to longer-term objectives. Regular meetings of the Port Association and Direct Employer members are rou- tinely held. These meetings take place in our members' various port cities, with agenda and discussion items being contributed by all parties. BARGAINING PREPARATION With the expiration of the current Master Contract coming up on Septem- ber 30, 2018, USMX utilized 2017 to prepare itself and its members for bargaining with the International Longshoreman's Association, AFL-CIO. USMX began its 2017 negotiations preparation with a Port Association/ Direct Employer meeting in December of 2016. At that meeting, all of the major topics expected to be discussed in bargaining on a Master Contract basis were on the agenda. Additionally, the local Port Associations put forward topics that were expected to be discussed on a local level so that all participants had an appreciation for the total scope of the upcoming labor talks. Subsequent meetings were scheduled throughout the balance of the year to keep membership abreast of the bargaining process and other organizational developments from the USMX perspective, as well as to re- ceive updates on the progress of local bargaining and other issues from the various regions of the enterprise. ANNUAL MEETING In July of 2017, USMX held its Annual Membership Meeting in Newark, NJ. A summary of the events of the past year, as well as a look ahead to the coming year, was presented to the membership. ADMINISTRATION INITIATIVES The administrative mission of USMX continued in full effect througout the year. Refined processes and procedures used in the administration of the various Master Contract funds were implemented. Initiatives were explored and put in place that improved the product that USMX delivers in line with the goals of its membership. These improvements were accomplished with the active dialogue, input and support of the USMX membership. During the year, the USMX Board of Directors met on a quarterly basis to ensure that the Board had a proactive role in governing the organization. Additional meetings and conference calls were held to enable timely dissemination of periodic updates to the Board on issues arising between the scheduled quarterly meetings. Our industry continues to consolidate and as it does USMX's membership makeup changes as well. USMX and its Board, on a timely basis, reviews its structure to ensure that the enterprise accurately reflects the repre- sentation, mission and goals of the organization. 2017 was the penultimate year of our labor agreement with the Inter- national Longshoreman's Association. The goal, established years earlier, of having an active, fully-informed membership at this stage of the negotiation process has been achieved. GOVERNMENT AFFAIRS The Trump Administration, which took office in January of 2017, head- lined Government Affairs in 2017. The effect on the maritime industry of healthcare and tax reform, the two major agenda items put forth by the Administration in 2017, can only be seen from a very broad perspective. Where more immediate impact has been found is in the Administration's desire to roll back regulations and in its nominees to the various government agencies. The Administration's withdrawal from the Trans Pacific Trade Agreement has had no significant impact, as of yet, on trading. Discussions on renegotiating the North American Free Trade Agreement remains a work in progress. The imposition of tariffs on steel, aluminum and other commodities has triggered a backlash from affected countries. There has been no action on the Administration's threatened border tax.

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