Pacific Maritime Association

3 P A C I F I C M A R I T I M E A S S O C I A T I O N 2014 Annual Report Pacific Maritime Association The 2014-15 contract negotiations between the ILWU and PMA had far-reaching impacts beyond the waterfront. During nine months of bargaining, the Pacific Maritime Association was mindful of these impacts, and sought to mitigate them. Both parties have recently ratified a five-year contract agreement, providing labor certainty through 2019. Yet this agreement is just the beginning. We now turn our attention to the future – and to restoring the trust of our customers, stakeholders and the public. While challenging, these negotiations served as a bookend to the 2002 and 2008 contract talks that began to reshape the waterfront. Those agreements gave employers the right to bring technology and automation to West Coast ports – essential tools to innovate, and to keep pace with competition from other ports. The latest contract will enable us to solidify those gains by providing a clear path forward for automation projects, as the result of a new waterfront arbitration system. By providing certainty to employers, the new system will foster the continued investment of billions of dollars on the waterfront – dollars that will pave the way toward more productive and efficient ports. Already, West Coast ports are a huge economic engine, supporting 9 million jobs nationwide – including more than 4 million in California, Oregon and Washington. We intend to protect and expand this engine, delivering benefits to communities throughout the United States. Again, we recognize that the recently concluded contract negotiations had ripple effects far beyond the bargaining table. It has always been the intent of the PMA to minimize those impacts, while paving the way for a bright future on the West Coast waterfront. Looking ahead, we will do our part – for the waterfront, and beyond. Sincerely, James C. McKenna To Our Stakeholders: James C. McKenna President and CEO

• Cover