TWENTY-SIXTH ANNUAL REPORT - National Labor Relations Board

Jurisdiction of the Board 25
case Both concerned the operation of Caribbean cruise ships under
foreign registry with clews composed pi 'manly of nonresident aliens
These vessels °pet ated regularly between Miami, Florida, where the
passengers weie taken aboard and retuined, and various foreign ports,
but never in the waters of the countaies of their iegistry In one
case," a ship under Liberian registry was owned by a Libman corpoiation,
chartered baieboat to anothet Liberian corporation, and operated
under time subchartei by an American col poi ation which had
oiganized, and still owned, both Libman corporations The Board,
one Member dissenting," found the situation substantially the same
as that in West India, above, and asserted jurisdiction It noted that
the -.4melican corporation had full cont. ol of the vessel, was its
beneficial owner and the employer of the crew, and that "the foreign
incorporation of the nominal ownet and opeiator of a vessel [could
not] bar the jurisdiction of the Act over an operation otherwise
within the coverage of its provisions"
In the other case," a ship of Panamanian iegiktiy was owned and
°pet ated by a Panamanian col potation, which had conti acted to have
an Ametican cot poration act as its exclusive agent in the United
States to handle matters concerning passengers and cal go, the sale of
passenger tickets and sales promotion, i epairs and piovisiomng of
the ship, and related matters The Panamanian owner-operator
tetamed direct control over hit ing and othei dealings with shipboard
pet sonnel, and determined what voyages to make But the business
of the vessel was handled mainly out of the office of the American
cot potation in Miami, Florida, where the vessel was pi imatily berthed
and her voyages begun and terminated The vessel's gloss annual
earnings were about $700,000, some 95 percent of its ptthsengers and
about 85 percent of its cargo originating in the United States
Futther, about 95 percent of its annual expenditures of about $200,000
weie made in the United States The Board majority 18 found that
both corporations were engaged in a single mtegtated enterprise
which was essentially a domestic operation having a continuing and
substantial impact on the domestic and foteign commeice of the
United States, and asserted juiisdiction Although, unlike the West
India situation, the shipownei and employer of the crew was a
foreign corporation, the majotity neve' theless found that this maiitime
operation possessed "those substantial United States contacts"
winch, under the West India decision, bi ought it within the act's
jurisdiction and noted, "It is not necessaiy that all the signifi-
'5 Peninsular et Occidental SteamshIp Co, 132 NLRB No 1 (July 10, 1961)
le Member Rodgers
11 Ras ft; n num.:nil Corp. 112 NLRB No 72 (August 10, 1961)
'5 Member Rodgers dissenting