1. PORT OF TACOMA ILWU 22 PORT EMPLOYEES 2008-2010 COLLECTIVE BARGAINING AGREEMENT

2. PORT OF TACOMA 2 REQUEST FOR AUTHORIZATION The Commission authorize the Executive Director or delegate, on behalf of the Port of Tacoma, to enter into a three- year collective bargaining agreement with ILWU 22 Port Employees, effective April 1, 2008 and ending March 31, 2010.

3. PORT OF TACOMA 3 PORT OF TACOMA and ILWU LOCAL 22 PORT EMPLOYEES  Overview  Background  Costs  Interest-based Bargaining  Management / ILWU 22 Interests  Significant Changes  ILWU Local 22 Contributions

4. PORT OF TACOMA 4 OVERVIEW This Collective Bargaining Agreement covers 95 Port employees:  11Office Staff  5Freight Coordinators  3Inspectors  72Maintenance  4Rail Car Coordinators

5. PORT OF TACOMA 5 BACKGROUND  Current Agreement expired March 31, 2008.  Discussions began in December 2007 on format of negotiations.  Local 22 and Port management agreed to engage in Interest-based Bargaining.  Negotiations commenced on January 9, 2008.  The negotiating team reached a tentative agreement on August 26, 2008.  Local 22 membership voted and approved tentative agreement on September 3, 2008.

6. PORT OF TACOMA 6 C O S T S Estimated cost over the life of the contract:: Total 2005-2007Total 2008-2010  Wages$ 21,663,000$ 23,291,000+7.5%  Benefits $ 9,502,000$ 10,217,000+7.5%  Total$ 31,165,000$ 33,508,000+7.5%

7. PORT OF TACOMA 7 INTEREST-BASED BARGAINING The Port of Tacoma’s 2008 Collective Bargaining Team included:  Louis Cooper, Carol Mitchell and John Bush * representing management interests  Mark Beckham, Dave Fjeld and William (Bull) Durham representing Local 22 interests  Loni Shorten, Scribe In Interest-based bargaining, both parties present the objectives (or interests) they would like to achieve in the negotiation. The parties work together to arrive at the best solution to meeting those interests. The team completed two days of Interest-based Bargaining training provided by the Personnel Employer Relations Commission (PERC), and the first few sessions of bargaining were facilitated by a PERC representative. * Deceased

8. PORT OF TACOMA 8 INTEREST BASED BARGAINING Continued…… Advantages:  Enhanced and more cooperative relationship between the parties;  Heightened respect and trust during conflict; and;  More satisfying solutions to the needs of the parties and their long-term relationship.

9. PORT OF TACOMA 9 MANAGEMENT/ILWU LOCAL 22 INTERESTS  Contract length  Wage increases/cost of living adjustment  Benefits  Performance standards  Maintaining job security for Local 22 members while providing a competitive working Port  Taking care of our customers  Clarity of language in contract and alignment of language to meet Federal and State Laws and Port Resolutions  Flexibility in scheduling for Maintenance staff  Career development for office staff

10. PORT OF TACOMA 10 SIGNIFICANT CHANGES  Performance Measurements/Evaluations  Continuity of Existing Benefits  Flexibility in Scheduling  Career Development for Office Staff  Cost of Living Adjustment

11. PORT OF TACOMA 11 ILWU LOCAL 22 Contributions  ILWU 22 is a service organization.  Provides 24/7 operations to our customers Port-wide.  Includes Rail, Truckers, Customer Service, Human Resources, Finance, Construction and Maintenance  “On Site, On Time, Every Time, and Work Is Guaranteed”  Provides “outstanding customer service” to the entire terminal community.  Maintenance holds the highest reliability rating for uptime on equipment at 99.6% for the industry in this area.  ILWU 22 Port employees take great pride in their work.

12. PORT OF TACOMA 12 ACTION REQUESTED The Commission authorize the Executive Director or delegate, on behalf of the Port of Tacoma, to enter into a three-year collective bargaining agreement with ILWU 22 Port Employees effective April 1, 2008.