May-June 2012 - The International Organization of Masters, Mates ...

New MM&P Jobs With APL
news briefs
MM&P is pleased to announce that there will be new jobs for MM&P members at American President Lines (APL). Over the course of
the next six months, this long-time MM&P employer will be replacing its four U.S.-flag C-10 Class vessels with four newer S-12 Class
vessels as part of its Maritime Security Program
(MSP) fleet.
Two of the four S-12 Class vessels are currently
under contract with the American Maritime
Officers. These vessels, the MV Cyprine and the
MV Pearl, will join the MV Agate and the
MV Coral under MM&P contract. The transfer of
MSP vessels and the resulting terms of employment
are in accordance with the existing collective
bargaining agreement between MM&P and
APL.
Although the C-10 Class ships—MV President
Adams, MV President Jackson, MV President
Polk and MV President Truman—will be leaving
the MSP program, they are slated to remain
in U.S.-flag operation under the terms of the
MM&P-APL collective bargaining agreement for
non-MSP vessels. These developments will result
in a net gain of two ships under contract and will
safeguard the jobs of all MM&P members currently
employed aboard the vessels.
APL President Truman. Although the C-10 Class ships will be leaving the MSP program, they
are slated to remain under U.S.-flag operation under the terms of the MM&P-APL collective
bargaining agreement for non-MSP vessels.
Puerto Rico Has Jones Act to Thank
For 20,000 Maritime Jobs, MM&P Tells GAO
Representatives of MM&P met in San Juan in April with officials
of the U.S. Government Accountability Office (GAO), a research
arm of the federal government. Participants in the meeting
included MM&P Pilot Group member Capt. Roberto Candelario,
MM&P Puerto Rico Representative Eduardo Iglesias and MM&P
International Counsel Gab Terrasa.
The meeting took place in the context of a study requested by
a politician, Puerto Rico Resident Commissioner Pedro Pierluisi,
who has asked the GAO to examine “the impact of the Jones Act
on the economy of Puerto Rico.” The Jones Act is the body of law
that requires that ships in America’s domestic trades be built in
U.S. shipyards, crewed by U.S.-citizen mariners and operated by
U.S. companies. Pierluisi says his goal is “to determine once and
for all the impact the Jones Act has on our economy… [because]
a broad array of economists in Puerto Rico have expressed concern
that the Jones Act hinders the island’s economic growth…”
First off, the MM&P representatives told GAO that the
Jones Act guarantees thousands of well-paying maritime jobs
to residents of Puerto Rico. Candelario, who is president of
the San Juan Pilots Association, also underlined the fact that
only American maritime workers are subject to Department of
Homeland Security background and security checks. He pointed
out that exempting Puerto Rico from the Jones Act would give
access to the island’s waterways and ports to foreign companies
and foreign maritime workers not subject to U.S. background
and security checks.
Transportation costs of Jones Act ships do not have a significant
influence on the final market price of goods in Puerto Rico,
the three MM&P representatives told GAO. In the U.S. Virgin
Islands, for example, market prices of U.S. manufactured goods
are comparable to or higher than those in Puerto Rico. The
Virgin Islands, which are part of the United States and in close
proximity to Puerto Rico, are outside the Jones Act and completely
open to foreign-flag ships.
Candelario, Iglesias and Terrasa told the GAO officials that
higher market prices in Puerto Rico and the Virgin Islands
compared to mainland U.S. prices are due to a lack of economy
of scale in the distribution system and control of the distribution
system by a limited number of suppliers.
“We don’t believe the final market prices of goods going into
or out of Puerto Rico would be significantly changed if U.S.
ships were replaced by foreign-flagged ships,” Candelario said.
“The major impact would be to shift wages, profits, taxes and
the economic contributions of U.S. jobs into the hands of foreign
interests—to the detriment of the U.S. economy and U.S. jobs.”
The Master, Mate & Pilot - 1 - May - June 2012