550 California Street

San Francisco, CA 94104-1006

Re: Letter of Understanding on Port Security

Dear Mr. Miniace:

The Parties agree that the Pacific Coast longshore industry must expand port security measures to address the new threats of terrorism arising from the tragic events of September 11, 2001. The Parties recognize that though many port security provisions may eventually be mandated by law, the Coast Parties must act responsibly and proactively, utilizing their expertise in port operations, to have in place immediate security measures for the protection of port workers and communities. Accordingly, this will confirm that the Parties have agreed to implement under the Pacific Coast Longshore and Clerks Agreement (PCL&CA) the following port security measures and to work together to lobby the federal government to adopt laws and regulations that are consistent with these provisions:

1) Any work and functions covered by section 1 of the PCL&CA that are to be performed as part of any port security measures that may be mandated by law or regulation shall be performed by ILWU bargaining unit members.

2) The Union and the Employers pledge to work together in good faith to assess and address the safety of waterfront personnel and the security of operations covered by the PCL&CA with respect to the threat of terrorist attacks. The Union and Employers also agree to work together in good faith in implementing any security procedures that may be required by law.

3) The Union and the Employers, through the CLRC and the JPLRC’s, will jointly develop a security plan for each port area as well as security plans for each marine facility covered by the PCL&CA. These plans shall, among other things, contain procedures for:

a) the identification, assessment, prevention and response to security breaches, emergencies, hazards to health and safety, and threatened and actual terrorist acts;

b) notifying waterfront personnel of emergencies and hazards, for evacuating and otherwise protecting personnel from such dangers, and for determining that personnel may be returned to the area without danger to their health and safety;

c) marine terminal operators to confirm that complete and adequate documentation as to contents, ownership, transportation itinerary and other necessary information, are on the site and accompany each container and cargo before entering such facility and vessels;

d) appropriate training of waterfront personnel as to the provisions of local security plans and procedures.

4) The following security procedures shall be implemented at each facility covered by the PCL&CA:

a) Persons entering or exiting secured, restricted, or controlled access areas shall undergo physical screening that includes in-person verification of identity and of any requisite licenses and certifications for truck drivers, crewmen, vendors and all others entering any port or port facility;

b) All vessels shall undergo pre-entry screening that includes verification as to the identity of the vessel’s owners, operators, charterers, ship agents, manning agents, in-person identification of ship officers and crew, as well as a list of all ports-of–call for the last three (3) months;

c) Outside seals on all containers shall be inspected in designated staging or holding areas of the marine terminal facility to confirm their integrity and proper identification before they are moved into other areas of the facility;

d) The interior of all containers designated as “empty” shall be inspected in designated staging or holding areas of the marine terminal facility to confirm their integrity and absence of any hazards before they are moved into other areas of the facility;

5) The JPLRC’s shall provide alternative security arrangements as may be permitted by law for continued employment of any worker who may be disqualified from any position arising from any legally required background or security check.

6) Any information as to the content or results of any background or security check of any worker conducted by the government shall be treated with full confidentiality and shall not be used for any purpose except as may be absolutely required by law.

7) The Joint Pacific Coast Marine Safety Committee and the Joint Labor Relations Committees shall have ongoing responsibility for the development and maintenance of all security, health and safety plans, programs, initiatives and issues.

8) Any conflicting law or regulation shall supersede any contractual provision regarding port security and related health and safety issues; however, these contractual provisions may expand any legal obligations in this area unless specifically prohibited by law or regulation.

Please confirm your agreement by signing below.

Yours truly,

James Spinosa

International President

Understanding Confirmed:

____________________________

Joseph Miniace,

President and CEO

Pacific Maritime Association

RAM/CWA39521