Transcript Document

GOVERNING MEMBERSHIP
MEETING
Thursday, October 10, 2013
9:00 AM – 12:00 PM
JEFFREY COLEMAN
Chairman, IAM Executive Committee
President, Coleman World Group
Governing Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada
Meeting Agenda
• Call to Order
• IAM Programs Update
• Roll Call of the
Governing Membership
• President’s Report
• Review and Approval of
Minutes
• Proposed IAM By-Laws
Revisions/Amendments
• Chairman’s Report
• General Counsel
Emeritus’ Report
• Reports of Standing
Committees
• Unfinished or Old
Business
• Governing Member
Elections
• New Business &
Discussion Topics
• Government & Military
Relations
• Announcement of
Election Results
• Closing
ROLL CALL
DISTRIBUTION OF
ELECTION BALLOTS
REVIEW AND APPROVAL
OF MINUTES
CHAIRMAN’S REPORT
Presented by:
Jeffery Coleman
REPORTS OF
STANDING COMMITTEES
ACCESSORIAL SERVICES
Presented by:
Tim Helenthal
CARRIER RELATIONS
Presented by:
Mike Richardson
CONGRESSIONAL /
GOVERNMENT AFFAIRS
Presented by:
Peg Wilken
CLAIMS
Presented by:
Rick Curry
TECHNOLOGY AND
COMMUNICATIONS
Presented by:
Brandon Day
COMMERCIAL AFFAIRS
Presented by:
Doug Finke
CORE MEMBERS
REPRESENTATIVE
Presented by:
Jackie Agner
GOVERNING MEMBER
ELECTIONS
Governing Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada
Slate of Candidates
Chair:
Member At Large:
Jeffery Coleman
Richard W. Curry
Coleman World Group
Gateways International Inc.
Vice Chair:
Brandon Day
Margaret “Peg” Wilken
Daycos
Stevens Forwarders Inc.
Tim Helenthal
National Van Lines, Inc
Michael Richardson
Senate Forwarding, Inc
GOVERNMENT AND MILITARY
RELATIONS
CHARLES WHITE
Director, Government & Military Relations
International Association of Movers
Discussion Topics
• DOD Budget Issues/Government Shutdown
• TSP Qualification Rules
• What did SDDC do next?
• Open Season - Implementation Timeline
• Requalification/“Right-Sizing”
• DPS Issues
• 2013 Peak Season
• Regionalization
• Agent Issues:
• DP3 – Phase III, NTS Electronic Billing & Payment, New
Agent Advisory Committee
DOD Budget Issues
• DOD - $500 Billion in cuts over the next 10 years,
doubled when Sequestration hit
• PCS moves exempt from sequestration for
uniformed personnel...but not civilians
• Civilian Furloughs – July 8 – Mid Aug. Original
estimate 22 days, then 11 eventually only 6.
• DOD - cost cutting in a number of ways:
• Troop/personnel reductions of 100,000+
• Longer dwells at a station
• Another round of BRAC? “Joint Basing”
• Pivot to the Pacific
- Guam, Korea, Australia, Philippines and Hawaii
DOD Budget Issues, cont.
• Currently DOD averages between 500,000 – 550,000
moves per year…(approx 170,000 May 15 – Aug 31)
Includes Domestic HHG, International HHG, UAB
(Air), NTS (long term storage), DPM, Local Moves
• May see a short term rise in shipment volumes over
next two years, but a significant drop is imminent
• “Leaner” & more Mobile force will eventually equate
to a smaller number of HHG moves
• FED GOVERNMENT SHUTDOWN
• SDDC remains open….for now
• JPPSOs/PPSOs – civilian personnel furloughed
…invoice approvals, preapprovals problematic
• Civilian moves will may be affected
Qualifications Rules – Pam 55-4
• First PAM 55-4 Draft released in early December,
2012
• Comment Period closed January 18, 2013
• Changes influenced by IAM / AMSA / Industry:
• Audited vs. Reviewed Financials
• New entrants – Experience… 5 years vs. 3 years
• Key Personnel – “employee responsible for rates”
• Quick Ratio 1.2:1 changed from 1:1
• Cargo Liability Aggregate - $150,000 to $500,000
• Performance Bonds increased 500%
• International $100,000 to
$500,000....$150,000
• Domestic $50,000 to $250,000
Qualifications Rules – Pam 55-4, cont.
• “Affiliations” – new term for CFAC...but much more
encompassing
• Old CFAC rules said…“may but do not always result
in CFAC.” New rules no such caveat
• New rule….
• Family relationships
• Owning another company
• Owning stock in another company
• Making loans to another company
• Managing another company
• Any of these relationships CANNOT file rates in the
same channel and code of service
What did SDDC do next?
• “New”... set of draft rules released on March 29, 2013
and a few more edits on April 12
• What’s New
• “Outsourcing TSP Responsibilities,” i.e., Move
Management – “Outsourcing of all TSP operations
is not allowed in DP3.”
• CFAC….It’s back!
• Require “Proof” of experience for approval in a
Market.
• What was this all about? Open Season & Eventual
Reduction of the Number of TSPs
OPEN SEASON
• Officially began July 19 and closed August 2 for NEW
applicants – must submit pre-screening questionnaire
and other required documentation (Pam 55-4)
• Current TSPs have until October 31 to apply for
expansion of Scope.
• New applicants must pass the initial paperwork
review and then go through a face to face interview at
SDDC. Those interviews ended September 6.
• Approx 50 new approved TSPs – mostly Domestic
• If an applicant was: Van line agent, DOD hauler, SIT
or NTS service provider, Ever “touched” a DOD
shipment in any way…..
• NO INTERVIEW!!!!!! NO APPROVAL!!!!!!
Requalification/“Right-Sizing”
• SDDC plans are to ….. Take a two-phased approach
• Phase I – Open Season for 2014
• Phase II – Re-qualify ALL TSP for 2015/16
• HOW …… “RIGHT-SIZING”
• What the heck is “RIGHT-SIZING”? International?
• Reduce the number of “turns at the wheel”/SCACs
based on a “groups” volume of shipments moved
….over what time period?
• Does hauling count or only booked shipments?
• What about “managed” Carriers?
• They have tried….Domestic CFAC, Affiliations &
Scoping…will this work? To be discussed Oct 29 PPF
DPS Issues
• DPS Release 1.6 on Friday August 30 – since that
release we have seen nothing but problems
• Invoicing issues – rating, transmission & PPSOs
• Agent User Role disappears
• New Country Codes
• DPS instability/not loading completely
• What was SUPPOSED to be in the Release?
• Domestic Peak and Non-Peak Rate Filing……rate
baseline changes in 2014. No Peak Season 10%
bump
• OTO moves to DPS – Why? Many moves to State
• New DPS Contract award was supposed to occur
October 1….now on hold through the Shutdown
………….what does a new contract mean?
2013 Peak Season
• 2013 - Least number of issues since DP3
implemented.
• Why?
• TSPs and Agents understand how to work the
system.
• Better Blackout granularity for domestic (not so for
International) and Shipment Refusals
• Possible - Refusals may be year round in 2014!
• 10% less traffic than in 2012 but about the same
as 2011.
• DPS stability for most of the Peak – added no
new functionality….until August 30 (new contract
looming)
• Code 2 flat – only 2-3% of Domestic Volume
• Short Fuse criteria change….good for who?
Regionalization
OSD initiative originally to be completed by the end of 2016
• But Air Force in “STRATEGIC PAUSE” - Now FULLY
completed end of 2018?
• 7 CONUS JPPSOs –
• JPPSO-MA (VA),
• JPPSO-NE (MA)
• JPPSO-SC (TX)
• JPPSO-NW (WA)
• JPPSO-NC (CO)
• JPPSO-SE (FL)
• JPPSO-SW (CA)
• OCONUS – Japan (Yokosuka), Korea (Yongsan), Europe
(WKAS), JPPSO-HI and a few other smaller more isolated
booking offices.
• Navy mostly finished with their part
• Army….long way to go….only Presidio in 2014.
• DP3 Phase III
Agent Issues
• Business Rules posted – DPM rules still in flux
• Programming for DPS begins with new contract
• Don’t expect implementation for 2-3 years
• NTS electronic Billing & Payment
• Fully implemented and working fairly well – Oct payments
delayed due to shutdown
• Still working the backlog of old paper invoices
• DPM electronic payment process may be introduced in 2014
• Agent Advisory Committee (AAC)
• Started in late spring 2013
• Started to better understand and promote agent issues
• 10 committee members – falls under the auspices of the
Government & Congressional Affairs Committee
• Starting with US DOD agent issue and will eventually grow
to include OCONUS DOD and commercial agent issues.
Charles “Chuck” White
Director, Government & Military Relations
International Association of Movers (IAM)
Alexandria, VA
[email protected]
Follow Chuck on Twitter:
Tweet @IAMmilitaryguy
[email protected]
703-317-9950
www.IAMovers.org
IAM PROGRAMS UPDATE
BRIAN LIMPEROPULOS
Programs Manager
International Association of Movers
IAM Governing Members Meeting
IAM Programs
How IAM serves its Governing Membership:
•
Receivable Protection Program (RPP)
•
Invoice Dispute Resolution Process
•
IAM Code of Ethics
•
Global Accreditation of the Industry-Led Inventory Standard
•
IAM Shipper Guides
Customs and Government Updates
•
U.S. Customs Intensive Exams
•
Distribution of your client’s Personally Identifying Information
•
Federal Maritime Commission (FMC)
•
Federal Motor Carrier Safety Administration (FMCSA)
IAM Governing Members’ Meeting
IAM Receivable Protection Program (RPP)
How does the RPP work?
• IAM insures the commercial invoices of all IAM members.
• If an IAM member goes out of business, a claim can be submitted for
compensation.
• If all conditions are met, the claimant will receive reimbursement.
• At current participation levels, IAM can pay up to $4,000 USD per claim.
• If more members sign up, we can increase the amount of money that we
pay out per claim.
Have You Heard of the Invoice Dispute Resolution Process?
IAM Governing Members’ Meeting
Invoice Dispute Resolution Process
Use IAM to Recover Money!
• IAM will intervene on outstanding invoice(s) whether they are Commercial
or Military.
• This includes US Department of Defense work.
[email protected]
• Members who participate in the RPP can request IAM intervention on any
outstanding invoices provided they are at least 90 days old.
• If a company does not pay, they are placed on the IAM Alleged Debtor
List.
• Alleged Debtor List is only available to RPP Participating Companies and
is distributed monthly.
IAM Governing Members’ Meeting
IAM Receivable Protection Program (RPP)
Future Plans
• 152 Members Currently Enrolled – Unsustainable at that level
• Inclusion of RPP as an IAM Membership Benefit
• Bring all IAM Members into the Program
• More Members = Better and More Expansive Benefits!
• Potential inclusion of invoices stemming from U.S. Department of
Defense (DOD) Business?
• More robust Invoice Dispute Resolution Process
• Alleged Debtor List will become more valuable with more Members.
• Bigger Claims Payouts with more Members!
IAM Governing Members’ Meeting
IAM Code of Ethics
Ethics Council Established on January 1, 2012
• Ethics Council composed of IAM members from diverse regions and
industry sectors to provide balance.
• Council adjudicated its first complaint this year.
[email protected]
• Important precedent
set by Council on future complaints.
• Complaint will be used to educate members on ethical behavior.
• Provides IAM Members with an avenue for recourse if another member
had not acted ethically
IAM Governing Members’ Meeting
Industry-led Inventory Standards
Exactly What is in the Standards?
• First part codifies all data elements of a household goods shipment
• Second part provides the following:
1. A common format by which information is collected and transmitted
between two users.
2. An electronic link between two different digital systems
What is the Goal?
• ISO Accreditation as a Global Standard
1. Establishment of ISO Working Group
2. Global Standard could be attained by end of 2014
• Widespread Adoption of Standard by Industry
• Industry Response to Future Imposition on Household Goods’ Shippers by
Government and Customs Authorities
IAM Governing Members’ Meeting
IAM Shipper Guides
Shipper Guides provide country-specific customs information for more
than 185 countries and territories around the world:
• Documents needed for duty-free import
• Specific policies for the import and export of HHGs
All of these Guides have been Updated in the last year!
Big Resource for IAM Members and Consumers
IAM Governing Members’ Meeting
Customs and Security Issues
Distribution of Personally Identifying Information (PII)
• Short-term solution: Standardized Web Form on IAM website.
• Long-term solution: Blanket protection against this information being
distributed to Vessel Manifest Information Companies.
Intensive Exams at US Ports
• IAM Ongoing Data Collection to Gauge Member Experience
• Results indicate particular issues at the Port of Long Beach.
• While intensive exams still remain high, all other ports are in line
with shipping volumes.
Ongoing Efforts to Address These Issues With CBP
IAM Governing Members’ Meeting
Regulatory Issues
Federal Maritime Commission (FMC)
• OTI Registration – Recommendation from Fact Finding
Federal Motor Carrier Safety Administration
• MAP-21 Implementation
• Protect Your Move Campaign
HHG Working Group
• Industry Associations
• Federal Agencies
• State Agencies and Law Enforcement
Moving Fraud Summit
• How to best combat rogue operators?
IAM Governing Members’ Meeting
Take Advantage of This Information
Through the RPP, IAM gives you recourse to recover payments owed to
you.
A greater sense of security when trading with other IAM members because
of the RPP, the Invoice Dispute Resolution Process, and the Code of
Ethics.
The development of the Industry-Led Inventory Standards provides the
industry with a response to potential adverse customs policies.
The Shipper Guides provide easily- accessed comprehensive Customs
Information.
We are constantly working on your behalf to protect your businesses
through our government outreach and relations.
PRESIDENTS REPORT
TERRY R. HEAD
President
International Association of Movers
PROPOSED IAM BY-LAW
AMENDMENTS AND/OR
REVISIONS
Core Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada
Proposed IAM By-Law Amendments and/or
Revisions
Proposed for the consideration and approval of the Governing Members:
ITEM ONE
Subject: Evidence Considered for Membership Rejection and Expulsion
Amendment Proposer: IAM Executive Committee
Objective of Proposal: In recognition of the Association’s increased focus on
upholding ethics and values for the membership, it is proposed to add additional
language to the IAM By-Laws that will provide the IAM Executive Committee
with greater authority to reject a membership application if the applicant has not
conducted business previously in an ethical manner or expel a member if a
member has breached the IAM Code of Ethics.
Core Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada
Proposed IAM By-Law Amendments and/or
Revisions
Article IV, Section I (Fourth Paragraph) will be amended as follows:
(The underlined/italicized portions constitute the revisions):
“Notice of every application for Membership shall be given to each Governing, Core,
and Supplier Member, who shall have thirty (30) days from date of such notice
to submit evidence that the applicant is not creditworthy or has not conducted
business previously in an ethical manner.”
Article IV, Section 4 (First Paragraph)
“For good cause the Executive Committee may suspend or expel any member of
the Association, or take other appropriate action. Good cause includes, but is
not limited to, failure to pay dues or other obligations owed to the Association,
after proper notice as defined in Article V, Section 2; failure to maintain
qualifications for membership as set forth in Section 1 of this Article; failure to
comply with the terms and conditions of Membership; and failure to comply with
any standards of business conduct which may be adopted by the Association,
including the IAM Code of Ethics.”
GENERAL COUNSEL
EMERITUS’ REPORT
JEFFREY COLEMAN
Chairman, IAM Executive Committee
President, Coleman World Group
UNFINISHED OR
OLD BUSINESS
NEW BUSINESS &
DISCUSSION TOPICS
ANNOUNCEMENT OF
ELECTION RESULTS
JIM WISE & BRYAN VICKERS
PACE, LLP
2013 GOVERNMENT SHUTDOWN
OVERVIEW & IMPACT
Jim Wise & Bryan Vickers, Pace, LLP
International Association of
Movers (IAM) Annual Meeting
October 9, 2013
Vancouver, BC, Canada
TIMELINE OF EVENTS
• September 20th – U.S. House sends spending bill to
the Senate, funding the government through Dec. 15th,
with funding for the ACA significantly depleted.
• September 24th – Sen. Ted Cruz (R-TX) and other
Republican Senators give speeches on Senate floor
against Healthcare Law.
• September 30th – House and Senate volley legislation
back and forth – no agreement is reached.
• October 1st – Shutdown begins at Midnight –
Healthcare exchanges open at 8 am later that
morning.
Government Shutdown – What’s Next? Or Likely..
• Last night, the President agreed to hold formal negotiations with
Republicans on a short-term deal, should they agree to fund the
government and meet funding obligations (debt ceiling).
• Likely topics for discussion – 1-year delay of the individual
mandate (businesses were granted this), repeal of medical
device tax (est. to generate $30 billion over 10 years), removal of
health care subsidies for Members of Congress and staff,
tweaking of “full-time” employees under the ACA from 30 hours
per week to 40.
• Speaker Boehner has rejected this idea (so far) – situation is
fluid however, and may change if some concessions with ACA
are agreed to.
Government Impasse – Debt Ceiling Limit
• To be clear, the approaching deadline to increase nation’s debt
limit is done only to pay existing borrowing obligations – it by
itself begins no new spending measures.
• October 17th is deadline – Treasury Secy Jacob Lew says the
U.S. will have $30 billion on hand at that point – unable to meet
its roughly $60 billion in daily obligations.
• At stake – Administration officials and most financial analysts
forecast world markets dropping sharply, significant loss in
value of the USD, and sharp increases for U.S. borrowing costs.
Government Impasse – Debt Ceiling Limit
• Many Republican legislators insist that the October
17th deadline not as final as being made out by the
Administration.
• They believe with tax revenues coming in, key
obligations will be met, and payments made in order
of priority.
• This contrasting view on the breach of the debt
ceiling limit adds complications to the negotiations
and talks.
Stock Market Activity & Financial Impact
• Stock market took the government shutdown on October 1st in
stride.
• This has not been the case as the US pushes closer to breaching
the debt ceiling limit – Dow Jones down 500 points over the past
two weeks.
• Since Sept. 2012, the Federal Reserve has been buying $85
billion a month in bonds in an effort to keep longer term interest
rates down - Federal Vice Chair Janet Yellen to be nominated to
succeed Bernake – supporter of efforts to keep interest rates
low.
• While this program and buying power will be adjusted downward
– indications are it may be tapered, rather than drastically
altered.
Federal Agency Activity
• On a normal day, the collective Federal Agencies will
post 150-200 rulemakings, notices of action, request
for comments and various decisions in the Federal
Register.
• The past week has seen the number of postings and
related shrink to about 5 or 6 a day.
• Notices now being published are now only those
critical and relate to safety and security measures.
• Non-critical Agency meetings cancelled (i.e. next
week’s Defense Business Board meeting at Pentagon)
Federal Agency Activity - PCS
• Currently, only those who have PCS orders in hand,
prior to October 1st, will be allowed to proceed with
their PCS, since their move has been funded by the
FY-12 budget.
• All others, should continue with the PCS process, but
must wait for funding to be authenticated before they
are able to complete their move.
• PCS orders coded “A” for accession and “S” for
separation are authorized to continue.
Federal Maritime Commission
Due to the Shutdown, the FMC is not not accepting online filings
or applications through its website for the following:
• Service contracts through SERVCON
• Ocean Transportation Intermediary (OTI) applications through
the Automated OTI Application (FMC-18)
The Commission’s online
databases will not be updated (and most inaccessible) until
Agency funding has resumed.
• The Commission will not accept or act on complaints, requests
for dispute resolution services, nor ombudsman services.
• Tariff Registration Forms (FMC-1)
Questions?
GOVERNING MEMBERSHIP
MEETING
Thursday, October 10, 2013
9:00 AM – 12:00 PM