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Deal" Members, After several daj's o[ inlenSe negotiations in June, the industq' and the [In ex(ended the M~ter Conlr, tct for another thee ~ars. The ¢ontr~t h:~s been in place on the Atlantic and Gulf coasts since 1996. Tbe new ngreemem, whkh expires on September 30, 2004, modestly incrmlses iongshore ~tges ~md benefits, atd eoJninits Ibe IIA to greater prothtctMty through rigorous h~dning and safety programs coaslWide. Further, we fully imgletlletlied fltl Janua~,' 1, 2000, a Management-Ilk (Mffk) gea]th care plan that has i~'cei~d Ibe plaudits of the IIA rang-and file and ils leadership The plan improves ILA henefits ,'ltld sharply curtails thee+ costs, a singular achievement in ml era of nmawap medicat inflation In the single }'ear that the MID. pbm has been ftflly in place, die inthtste/I1~ ~tved ;m estimated $35 to $40 nlRgon in indMdual port costs. Rowe~ er, it has ftecome starkly ,'lpparenl tha about $200 miUion in surplus ~ elfat e funds contributed prPl~arilp 0~' ocean ca~Jiera [lave accrtted over the i'~t rs Jn certain North and South AgaulJc port p]aJlS. We are ~e~ [oCtlsel[ on ireso[vthg ties major JS~lle ill the near let'111. Wgh the Occnpationai S:ffety & Hea]lh kdminislmtion (OSHA), we dex eloped a progrmn to help indi'eidual longshoremen operate powered indnsirbd Irucks (PIT) safely aud more eRtcienl[}~ That p+~gmnb now being pnt into pbtce up and down the Agantie and Gt~lf coasts, uses the rltoSt modem conlpuler, alldJO-~Sua] and lextual [tills ~wai]a hie. It,~ ]eallers thlly supported the training pt'ogl~m+ and urged Longshoremen to embrace it Espe eiall}, eEleOtlragJng, the leadePa' withngness to Cooperate with management eXtellded Io working ~th us to resolve difl)culffes in the colleeP~ barg,'thling relatiotls[dp. ~lllal goodwill bem'een the parties ermftled the ioint Jurisdiction CommRtee to re+oge a number of vet7 couientious i~ucs of tradgional CL~ft jtn'isdiction, and the Inthlsir~, Appe]lale Comnfltee Io t egn[x'e other Master CO]ItI~It'L griexallees. I + + S l m e + a l l y e m ; o u r a g i n g , t h e I L A l e a d e r s ' w i l l i . g n e s s t o cooperate with illa41ageinenl extentded to win,Ring with tns to resolve, difl]cttlties in the. c o l l e c l i v e I ) a r g a i n i . g t ' e l a t i o n s h i p . Chaitman's Report

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