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New Report Finds Retail Prices in Puerto Rico Are Not Affected by the Jones

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New Report Finds Retail Prices in Puerto Rico Are Not Affected by the Jones Organized 1885 Official Organ of the Sailors’ Union of the Pacific Volume LXXXI No. 8 SAN FRANCISCO, CALIFORNIA Friday, August 23, 2018 New report finds retail bigmericans win want for strong isorganized clear: When we see an op - laborThe Koch brothers in andmo oth- prices in Puerto Rico are not Unions. That’s the mes- portunity to use our political er conservative campaign Asage from polling that voice to give workers a more donors have provided lavish shows more than 60% of voters level playing field, we will seize funding for this war on orga- nationwide approve of orga- it with overwhelming passion nized labor. In state after state, affected by the Jones Act nized labor. And that’s certainly and determination. Tonight is when Koch-sponsored, corpo- conomists from Bos- consumers by evaluating the the message from Missouri, the latest act of working people rate-friendly governors have ton-based Reeve & Asso- competitiveness of freight rates where voters on August 7, changing a rigged system that taken charge –Scott Walker ciates and San Juan-based in the United States/Puerto overturned the state’s so-called for decades has been favoring in Wisconsin, Rick Snyder in E “right-to-work” law by an over- Estudios Técnicos, Inc. last Rico market, the quality of corporations, the mega wealthy Michigan, Mitch Daniels in Indi- month released a joint report, service provided by the Jones whelming margin. and the privileged few. ana, Eric Greitens in Missouri– “The Impact of the Jones Act on Act carriers, and the impact of The Missouri result offers a When we see an opportunity they have signed so-called right- Puerto Rico,” that concluded the the carriers’ freight rates on the reminder of what happens when to use our political voice to give to-work legislation into law. Jones Act has no impact on either prices of goods shipped between the people –as opposed to corpo- workers a more level playing Designed to undermine the retail prices or the cost of living the United States mainland and rate-friendly Republican gover- field, we will seize it with over- ability of Unions to organize in Puerto Rico. In addition, the Puerto Rico. nors and legislators– are given whelming passion and determi- workers, to collectively bargain report found that the state of the “There has been much debate a chance to decide whether they nation,” stated Trumka. and to engage in politics on want a muscular labor movement art maritime technology, Puer- about the impact of the Jones Trumka’s point is a vital one. behalf of economic and social to fight for better wages and to-Rico focused investments, Act on Puerto Rico, particularly The August 7 voting saw a justice, right-to-work measures benefits, and for fairness in the and dedicated closed-loop ser- following Hurricane Maria,” number of labor allies –such as are really “right-to-work-for-less” workplace and society. vice offered by Jones Act carriers said John Reeve, the principal in Kansas Democratic congres- laws. According to the Economic provide a significant positive Reeve & Associates and the lead In a state where Republicans sional candidate James Thomp- Policy Institute, “These bills economic impact to the island, economist on the study. “The have won the last five presiden- son– win key primaries. It also won’t lead to more manufacturing at freight rates lower or compa- findings of our analysis show tial elections and where the GOP saw labor-backed Democrat plants or better jobs or anything now controls the executive and good. They lead only to weaker rable to similar services to other that reliable, efficient, and reg- Danny O’Connor finish within legislative branches of state gov- Unions, less bargaining power Caribbean Islands. ular Jones Act services benefit a whisker of his Republican ernment, 65% of the Missourians for [workers], and lower wages. In the first comprehensive re- consumers and businesses on the rival in a special election to fill who cast ballots voted to scrap Wages are 3.1% lower in so-called port on the impact of the Jones island, and no evidence suggests a historically Republican Ohio the “right-to-work” measure that congressional seat. ‘right to work’ (RTW) states, for Act in Puerto Rico following that exempting Puerto Rico from was enacted just months after a Union and nonunion workers Hurricane Maria last year, the the Jones Act would reduce con- But the Missouri win was corporate-aligned Republican alike, after correctly accounting authors analyzed the econom- the sweetest result for a Union sumer prices in Puerto Rico. On grabbed the governorship from for differences in cost of living, ic impact of the Jones Act –a movement that has been under the contrary, such an action may the Democrats in 2016. demographics, and labor market critical economic and national well increase prices.” assault in recent years. “The defeat of this poisonous characteristics. The negative im- security law that ensures goods “The results were overwhelm- This landslide victory for labor anti-worker legislation is a vic- rights upsets the political calcu- pact of RTW laws translates to transported from U.S. port to ingly conclusive regarding the tory for all workers across the lus, and the spin, of the billion- $1,558 less a year in earnings for U.S. port be on vessels that are economic contributions of the country,” declared AFL-CIO aire class that has for decades a typical full-time worker.” American crewed, and Amer- Jones Act to Puerto Rico. Their President Richard Trumka as the promoted a nationwide drive to In Missouri, after Greitens (a ican built and owned. The detailed, fact-based analysis results came in. “The message use the power of government to scandal-plagued politician who report analyzed the impact on found that Puerto Rico received sent by every single person who weaken Unions. very similar or lower shipping worked to defeat Proposition A continued on page 3 freight rates when compared to neighboring islands and that the transportation costs have no impact on retail prices on the Challenges facing U.S. Merchant island,” said Matt Woodruff, Chairman of the American Mari- time Partnership. “Moreover, the Marine in new government report study found that prior claims and he U.S. Government Ac- flag operators, according to 40% in recent years, helping to press reports that questioned the countability Office (GAO) DOT’s Maritime Administration stabilize the financial situation value of the Jones Act to Puerto has released a new report (MarAd). MarAd officials told of participating operators, but Rico were erroneous and their T on the challenges facing the GAO that the difference in opex MarAd expects that rising opex validity completely undermined U.S.-flag deep sea fleet, includ- between a U.S.-flag ship and a will be a continuing challenge. when compared to the economic ing rising operating costs and a foreign-flag ship has risen from MSP offers significant advan- facts at hand.” declining number of qualified $4.5 million per year in 2009 tages for the federal government, In summary, the findings American mariners. GAO urged to as much as $6.5 million per according to MarAd and DOT. include: the Department of Transpor- year today. For 60 ships, this It is a low-cost way to procure Periodicals’ postage paid at San Francisco, CA (USPS 675-180) postage paid at San Francisco, CA Periodicals’ The Jones Act has no impact on tation (DOT) to formalize a additional expense is offset by U.S.-flag tonnage and to keep either retail prices or the cost national maritime strategy to the Maritime Security Program a young fleet, as the program is of living in Puerto Rico. respond to these challenges, as (MSP), which provides an limited to vessels of less than · The report found that ship- requested by Congress in 2014. annual subsidy of $5 million to 25 years of age. GAO found that ping costs between the mainland Rising costs enrolled U.S.-flag vessels. The over the last twelve years, oper- MSP appropriation has risen by continued on page 7 Costs are rising for U.S.- continued on page 9 SUP ELECTION NOTICE: PAGE 5 Page 2 WEST COAST SAILORS Friday, August 23, 2018 SUP Honor Roll California Labor Federation Voluntary contributions from the membership to the following funds: policy statement on maritime “California’s ports are the gateways for nearly 50% of all U.S. waterborne commerce. Organization/ Political Fund The ports link the state to the global economy and fuel economic growth. Ports and Wilfredo Aquino. 60.00 their intermodal goods-movement businesses support a high-wage workforce in the General Fund Ben Ashton. 50.00 highly Unionized transportation trades. The Federation supports releasing funds from the Harbor Maintenance Trust Fund for port infrastructure improvements and building. Ben Ashton. 50.00 Emo Aulelaua . 20.00 Antolin Avorque. 10.00 The Federation reiterates its support for federal statutes that ensure that vessels Chris Bartolo. 20.00 engaged in the coastwise and international trades are built and crewed by American West Coast Quentin Brown. .10.00 workers. The Jones Act, the Maritime Security Program, the Passenger Vessel Services Act, and U.S. cargo preference laws are critical in maintaining a viable American Chris Bunheirao. 50.00 Sailors Merchant Marine. Dave Connolly. 100.00 Archie Aki. 50.00 The Jones Act (Merchant Marine Act of 1920) stipulates that vessels that carry Robert Barbee. 25.00 Ian Donohue. 50.00 cargo between U.S. ports be built in the United States, owned by U.S. citizens and Archie Bickford. 25.00 Dale Gibson. 35.00 crewed by U.S.
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