Port of Seattle Strengthens Code of Conduct

By Mark Edward Nero

In a unanimous vote, the Port of Seattle Commission on Feb. 7 approved a motion strengthening the transparency and accountability elements in the port’s Code of Ethics and Workplace Conduct.

The Commission amended the code of conduct to require that any changes to the code be made in consultation with the Port of Seattle Commission.

The Commission amended the “Exceptions to $50 Limit on Gifts” to its pre-April 2015 status by eliminating an exception for the cost of admission to a performance or event where attendance by the senior manager is related to the performance of official duties.

The Commission also added an accountability measure. When potential conflicts of interest, reported concerns, or alleged violations of the Port’s Workplace Responsibility policies pertain to the CEO, the Port shall report those matters to the President of the Commission. The President of the Commission shall have the discretion to refer such matters to an outside party.

The changes were made in the wake of the resignation of former port head Ted Fick, who resigned Feb. 1, about two-and-a-half years into a three-year contract.

His resignation came the same day that Washington State Auditor’s Office publicly disclosed that it has challenged a one-time payment that the Port of Seattle made to about 640 exempt employees in December 2015 at Fick’s behest, saying that the lump-sum $4.7 million in one-time retention bonuses, which was approved in December 2015, was illegal since it wasn’t tied to merit or performance goals.

The Port Commission responded to the Auditor’s Office findings on Feb. 7, releasing a statement declaring that the port had “a legitimate business rationale” for making the payment, and that it was appropriate as a business need, due in part to concerns raised by employees after Seattle joined with the Port of Tacoma to form the Northwest Seaport Alliance joint maritime operating agreement.

“In response to employee concerns, the port determined that a one-time payment, versus more costly permanent wage increases, was the best option to achieve our business rationale of retaining our highly-skilled and experienced workforce while limiting the financial impact,” the port stated.

Seattle Port Payments Challenged by State Auditor

By Mark Edward Nero

The Washington State Auditor’s Office has challenged a one-time payment that the Port of Seattle made to exempt employees in December 2015 at the behest of recently-resigned CEO Ted Fick.

The Port Commission authorized the payment to address widespread negative reactions following a series of large-scale organizational changes, moving to a common performance review date and increasing the standard work week from 37.5 hours to 40 hours.

The Auditor’s Office revealed its finding during a regularly scheduled accountability audit on Feb. 1. The audit is still in progress.

“We believe that the one-time payment achieved the intended effect of supporting employee retention and addressing employee concerns,” Port Commission President Tom Albro said in a statement provided to Pacific Maritime Magazine Online. “We have conveyed to the State Auditor’s Office our belief that the port has a strong legal basis for taking this action.”

“We respect the State Auditor’s Office’s process and accountability to the public, and are working collaboratively with them to expedite completion and public release of the audit with all of the facts and circumstances and the port’s full response.,” Albro said.

Albro also addressed the recent administrative leave and subsequent resignation of ex-port CEO Tom Fick, who departed the port Feb. 1.

Albro said the Port Commission had raised multiple personnel issues with Fick during a recent performance review, but that he wasn’t placed on administrative leave as a result of the audit.

The performance review, an electronic version of which was provided to Pacific Maritime, praised his leadership in some areas, but gave him low marks in the areas of CEO-Port Commission relations and integrity.

In the review, one of the five commissioners said that Fick “needs to internalize that leading a public agency is living in a fish bowl,” and another commented on Fick’s April 2016 arrest on charges of driving under the influence.

“The Commission is not as concerned as much as Ted’s DUI as it was about his thinking on how to deal with the issue… It took a lot of Commission effort to convince him that he needed to tell his staff and make a public statement right away,” the unidentified Commissioner said.

Port of Seattle CEO Fick Resigns

By Mark Edward Nero

Port of Seattle CEO Ted Fick suddenly resigned from the position on Feb. 1 after less than two-and-a-half years on the job, and nearly eight months before his three-year contract was set to expire.

“I have come to realize that my talents and strengths are best suited to the private sector, where I plan to return,” Fick stated in his resignation letter.

Fick’s departure came days after he was placed on administrative leave while undergoing a performance review by the five-member Port of Seattle Commission. Neither the impetus for the review or details of it have been publicly stated.

During a special Feb. 2 meeting, the Port Commission accepted Fick’s resignation and appointed Chief Operating Officer Dave Soike interim CEO.

“We accept the resignation of Ted Fick, and acknowledge his desire to return to the private sector,” Commission President Tom Albro said in a prepared statement. “We are currently working through the details of his departure and will defer further comment until those details are resolved.”

Fick came to the port in September 2014 after he was hired to replace outgoing CEO Tay Yoshitani, who was retiring from the job after being with the port since 2007.

Prior to the Port of Seattle, Fick spent many years working in the Puget Sound region’s manufacturing and industrial community, beginning at his family’s Tacoma-based company, Fick Foundry, from 1977 to 1983. Then, from 1983 to 2000 he worked for PACCAR, one of the Pacific Northwest’s primary manufacturers, and held leadership positions within both PACCAR and its Kenworth division.

He’s also been employed by Ingersoll Rand Ltd. (2004-2007) and Polar Corp. Inc. (2009-2013), among other companies.

Soike, who had already been running the port while Fick was on administrative leave, has been with the port in various roles since 1980, beginning as a junior engineer. Just this past March, he had been named by Fick to the newly-created position of Chief Operating Officer.

Seattle Port Undergoes Organizational Realignment

By Mark Edward Nero

On Feb. 24, Port of Seattle CEO Ted Fick presented to his port commission a series of organizational changes that he said are part of the initial phase of a series of measures to help aid the port’s growth strategy.

“During my first five months on the job I’ve recognized that we have many opportunities to grow our already significant impact on the region’s economy, to increase revenue, and to boost our operational excellence and effectiveness,” Fick said.

The announced realignment aims to grow operations and increase jobs throughout the region and state by promoting economic development, Fick said, as well as advancing the port’s Century Agenda, a 25-year strategy for building a sustainable regional economy through targeted business initiatives and partnerships with public and private sectors.

Organizational changes include the creation of an Office for Strategic Initiatives to provide a launch pad for good ideas and process improvements; a new Economic Development office that will encompass a number of existing functions such as Real Estate, Office of Social Responsibility, Tourism Development; and a new small business ‘incubator’ to become a primary economic growth driver for the port.

Also, a new Maritime Division will include all remaining water-borne businesses – cruise, fishing, and recreational boating. There will be an increased number of executive staff reporting directly to the CEO, including Labor Relations. Seattle’s Airport Division will remain structured as-is.

“By flattening the organization, it will give me a more focused opportunity to make a direct impact on the organization, such as Labor Relations and Economic Development,” Fick said. “This is just the first phase of a reorganization that will continue for a couple of years as we grow the business.”

Seattle Commission Formally Appoints Port CEO

By Mark Edward Nero

The Port of Seattle Commission on Sept. 11 voted to formally appoint Ted J. Fick as the port’s new Chief Executive Officer; his selection was announced in August. Fick officially takes over for the retiring Tay Yoshitani on Sept. 29.

“I am ready to dig in to the complex competitive challenges facing the port – and to working with such a skilled team of commissioners, executives and staff. I look forward to all that we will accomplish together,” Fick said.

Fick has over 25 years of leadership experience in major manufacturing and transportation organizations – including oversight of international operations. He spent many years working in the Puget Sound region’s manufacturing and industrial community, beginning at his family’s Tacoma-based company, Fick Foundry. He then spent many years with one of the Pacific Northwest’s primary manufacturers, PACCAR, holding leadership positions in both PACCAR and their Kenworth division.

He left the Pacific Northwest in 2000, and has since held multiple leadership positions in transportation and manufacturing companies. Most recently, he served as CEO of Polar Corp., a $475 million trailer and component parts manufacturer in Minnesota. In that job, he oversaw three operating divisions, multiple manufacturing plants and a workforce of over 2,000 represented and non-represented employees.

Commissioners said they were excited to see how his expertise in successfully guiding organizations through changing competitive environments will bring new ideas and energy to the port.

“Ted understands and appreciates the challenges facing the port,” Commission Co-President Courtney Gregoire said. “He also immediately demonstrated to us where he saw opportunities within those challenges, opportunities for making the port stronger and more competitive and for generating new jobs and growth for our region.”

Seattle Port Picks Next CEO

By Mark Edward Nero

The Port of Seattle Commission has selected the port’s next CEO. Ted Fick, a Tacoma native with decades of experience leading manufacturing organizations across the country, was chosen to take the helm when current CEO Tay Yoshitani retires next month.

“Ted has the right combination of skills and dynamic leadership to help the Port of Seattle thrive in the globally competitive environment ports face today,” Port Commission Co-President Courtney Gregoire said in a statement announcing the move. “He brings the fresh perspective and breadth of experience we need to help our region generate new jobs and economic growth.”

Fick has over 25 years of leadership experience in major manufacturing and transportation organizations – including oversight of international operations. He spent many years working in the Puget Sound region’s manufacturing and industrial community, beginning at his family’s Tacoma-based company, Fick Foundry. He then spent many years at PACCAR, one of the Pacific Northwest’s primary manufacturers holding leadership positions in both PACCAR and their division Kenworth.

He left the Pacific Northwest in 2000, and has since held multiple leadership positions in transportation and manufacturing companies. Most recently, he served as CEO of Polar Corp., a $475 million trailer and component parts manufacturer in Minnesota. In that job, he oversaw three operating divisions, multiple manufacturing plants and a workforce of over 2,000 represented and non-represented employees.

“Ted’s experience across multiple facets of the supply chain, coupled with an ability to manage organizations through growth and change, make him the right leader at the right time,” Commission Co-President Stephanie Bowman said.

Commissioners must vote on Fick’s appointment in public session; the vote’s scheduled for their next meeting, on Sept. 11, when Fick will be introduced to the community.

Fick is expected to begin work at the port Sept. 29, 2014.

“I am honored to join the Port of Seattle, an organization I’ve depended on, worked with and admired throughout my career,” Fick said in a statement. “I am grateful for the opportunity to lead the highly-skilled team of people that keep the port humming every day, and I can’t wait to join them as we work together to generate 100,000 more jobs for the Puget Sound region.”

The Commission began a nationwide search for a new CEO in early 2014. Current CEO Tay Yoshitani, who joined the port in 2007, retires Sept. 30, 2014.​