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R E P O R T 1997 - 2011." d Retrospective Chairman's Remarks When the United States Maritime Alhance, Ltd was established m 1997, it was based on the philosophy that MaIlagement and the Longshore industry were best served when the carriers, direct employers, and the port associations worked together as a team It is that founding principal on which USMX has operated and will continue to operate. Fur- thermore, it is just that spirit ot cooperation and teamwork that has guided the organiza- tion through contracts and extensions that have been successfully negotiated over the last 14 years As we look ahead, the challenges we lace are clear. The ILA will have a change in leader- ship at its July convention, and how that change might aftect its operating philosophy is unla~al at this time It is important that we continue the positive relationship with our counterparts in the ILA as we begin Master Contract negotiations. We must protect any savings we have achieved through negotia- tions, while at the same time, protect our right to make whatever changes are required to reduce costs and improve productivity and e~ficieney It is paramount for us to be able to convince the ILA that a more productive and e~ficient Longshore industry will benetit both Management and the ILA m the years ahead¸ It has been my privilege to serve as your Chairman and CEO, and I look forward to continuing our work with the directors and membership to achieve our goals and to pro- tect our interests¸ The Evolution of United States Maritime Alliance, Ltd. (USMX) In 1996, recognizing that the time had passed for baying a separate carrier association to parhcipate m negotiation of the Master Con- tract, the consensus ot USMX members was that there should be a single management as- sociation to negotiate and administer the Master Contract. One orgamzation represent- ing all sectors of the membership was the best way to meet future challenges presented by the ILA, as well as to ensure that all USMX members would continue to receive the savings provided by the Master Contract It would be the first time that all tftree enti- tles: carriers, port associations, and direct employers participated m and agreed to be bound by the terms and conditions ot the re- sultant Master Contract. M E R G E R O F C C C A N D U S M X The Directors of the Carriers Container Council, Inc (CCC) and the Dtrectors of USMX agree to take the necessary corporate action to action to (1) desigIlate USMX as the sole collective bargaining agent for carriers, terminal operators, stevedores, and port as- sociations; (2) sunset CCC's authority to rep- resent carriers during negotiations; and (3) create a new corporation to carry out the ad- ministrative functions for the industry that CCC had previously performed A C I I O N S 1 A K E N On November 13, 2001, the USMX Directors uIlanimously approved a plan of restructur- tng to achieve the goal of making USMX the single bargaining representative On Decem- ber 6, 2001, the CCC Dtrectors unanimously approved plans to transfer CCC's responsi- bilities to USMX and to cease CCC's opera- tlons USMX and CCC planned to take the tollowing actions: Transfer CCC's assets to USMX Transfer CCC's 3 regional offiees to USMX Transfer CCC's bargaining authority to USMX

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