Benefits of the New PNW Labor Contract Prepared by Shawn Campbell, Assistant Director West Coast Office US Wheat Associates

The New Contract Is Signed PNGHA A final deal was ratified on August 27. This deal followed:  Twenty-four months of negotiations.  Over 70 separate negotiation sessions.  A 19 month lock-out at United Grain.  A 17 month lock-out at Columbia Grain. The new contract was ratified by 88% of the voting union membership. The new contract will expire May 31, 2018.

What Does It Mean To The Buyer?? Every grain terminal in the Pacific Northwest is now running under very similar contracts to the infamous EGT contract. “This is the largest change to grain terminal labor in eighty years.” “This agreement paves the way for grain loading in the Pacific Northwest to move into the 21st century.” “The new agreement will have a greater impact on Pacific Northwest grain exports than the construction of EGT.” Temco LLC

Changing How Labor Is Assigned Union Hall Under the old contract all hiring was done through the union hall. Who reported to work depended on a number of factors:  Seniority.  Availability of jobs that day.  Availability of better jobs.  Who reported to the union hall. Result was a large variation in who showed up each day and the skill level of the work force. Loss of both time and money training and re-training the highly variable work force.

Changing How Labor Is Assigned Under the new contract labor is chosen from a steady crew list. The same workers will report to the terminals each day for work. The new steady crew work force:  Greater expertise.  Easier adoption of newer and better technologies.  Easier adoption of more complicated and technical processes. This will result in a significant increase in terminal operation efficiency, resulting in lower costs and faster load times.

Re-Assigning Labor Union Hall Under the old contract labor could not be re-assigned from one task to another. A new worker had to be brought in. With the new steady crew list, a worker can be re-assigned to any task in the terminal. The only caveat is that workers on the dock cannot be moved into the terminal. This results in significant labor cost savings for the terminals.

Selecting Who Works At The Terminals Under the old contract the exporters had little control over who worked at their terminals. It was extremely difficult to get rid of bad workers. Under the new contract the union and exporters work together to form the steady crew list. New additions to the steady crew list have a 90 day probationary period. In case of problems the arbitration process has been stream-lined and accelerated.

Control Room and Docks Under the old contract personnel in the terminal control room were union members. With the new contract personnel in the control room will work directly for the exporters. Management will now also oversee ship loading operations out on the dock. The number of workers on the dock have been reduced from eight to four.

Set Number of Workers Under the old contract the exporters called for workers from the hiring hall on an as needed basis. The number of workers called for was dependent on how busy the exporters were. Under the new contract the exporters must guarantee a set number of jobs for a set number of hours year round. This creates incentive for the exporters to load a larger number of ships and to keep the terminals as active as possible throughout the year. Day 1Day 2 Day 1Day 2 Old Contract: New Contract:

Other Changes Exporters are now allowed to go to court to end work stoppages immediately. Supervisors are now allowed to perform work during health and safety disputes. Union members received a moderate pay increase.

So What About The Buyers?? The changes to the grain terminals labor contract will result in:  Increased use of newer and more complex technology and techniques.  More efficient terminal operations.  Significant cost savings.  Steadier work for union members that work at the terminals. Due to recent construction and modifications there is a high degree of competition amongst PNW elevators. Cost savings will be used by terminals to make them more competitive in both the PNW and world markets.

Thank you for your time and attention. Questions?