Investigation of the Waterfront Commission of New York Harbor

II. BACKGROUNDHistoryIn the early 1950s, corruption plagued the piers of New York Harbor: members oforganized crime controlled the docks and the unions; longshoremen were regularlyrequired to pay kickbacks to obtain employment; payoffs on the piers were considered apart of doing business; and, theft of cargo was common and went uninvestigated.To combat corruption on the piers, the New York State Crime Commission andthe New Jersey Law Enforcement Council held a series of public hearings. As a result,New York and New Jersey enacted a compact, the Waterfront Commission Act (“theCompact”), to form the Waterfront Commission of New York Harbor, a bi-state entitymandated to “investigate, deter, combat, and remedy criminal activity and influence inthe Port of New York and New Jersey and to ensure fair hiring and employmentpractices, so that the Port region can grow and prosper.” As required under federal law,the bi-state Compact was approved by the United States Congress on August 12, 1953.Organizational StructureThe Waterfront Commission currently is headquartered in Manhattan at 39Broadway, with field offices in Brooklyn, New York, and Port Newark, New Jersey. TheCommission also operates a “hiring hall” for dock workers in Edison, New Jersey. TheCommission currently licenses 53 companies to operate on the Waterfront, and maintainsa registry of 6,452 longshoremen and other waterfront employees. The Commissionemploys approximately 100 in staff, and has an annual budget in excess of $11 million.Two part-time commissioners of the Waterfront Commission serve terms of threeyears. The Governors of New York and New Jersey each appoint a commissioner, withthe advice and consent of the respective state senates. The commissioners receive asalary of $43,500 per year for their service. The Commission holds regular meetingsapproximately every two weeks, and the commissioners may otherwise speak on an asneededbasis. Typically at their bi-weekly meetings the commissioners address hiringand terminating employees, discipline of employees, issuing licenses to stevedoringcompanies, issuing notices of hearings, and whether to accept or reject findings fromhearings. Because there are only two commissioners, both must agree to a resolution forit to be adopted. 4 During the period covered by this investigation, CommissionersMichael Madonna of New Jersey and Michael Axelrod of New York governed theCommission. Upon the expiration of Axelrod’s term, Ronald Goldstock was appointedby New York Governor David A. Paterson as New York’s Commissioner and, on July 2,2008, was confirmed by the Senate and assumed his duties. After the presentation of theInspector General’s findings to staff members of New Jersey Governor Jon S. Corzine,4 Although the two commissioner structure has led to stalemates and inaction, any change to thecomposition of the Commission requires legislation in New York and New Jersey followed by ratificationby the United States Congress.6