M.E.B.A. Marine Engineers’ Beneficial Association (AFL-CIO) Second Quarter 2014 Spotlight on Jones Act Tankers – OSG & ATC Patriot/M.E.B.A. Take Over MSC Watson-Class LMSRs Faces around the Fleet Aboard the HORIZON SPIRIT are (l-r) Sherman Frett (Electrician), Kings Point cadets Bailey and Dominic, and Chief Engineer Joe Shea. M.E.B.A. continues to support the last two operational WWII Liberty vessels. Aboard the JEREMIAH O’BRIEN in San Francisco are M.E.B.A. engineer Jim Rowe with MM&P Pacific Coast Agent Jeremy Hope. The other working Liberty ship is the JOHN W. BROWN in M.E.B.A. officers onboard the YORKTOWN EXPRESS (MTL). From left to Baltimore, MD. Both vessels right are Chief Mate Edward Figelski, Second Mate Wesley Kuhns, C/E are doing day cruises Kealokia Peltier, 2nd A/E Ben Ganser, 1st A/E Matthew MacNeil, 3rd A/E this summer. Check their Michael Coggio, Capt. Luke Catarius and Third Mate Michael Carr. websites to book your voyage today. In this issue we focus on two of our contracted companies operating tankers in the Jones Act trade - OSG and ATC. At top left is ATC’s ALASKAN EXPLORER. OSG’s OVERSEAS LONG BEACH is seen at top right. In addition, On the Cover: Patriot Contract Services has assumed control of eight Watson Class LMSRs. The USNS RED CLOUD, seen on the cover, and the other seven vessels are all crewed with M.E.B.A. officers in their engine rooms. Marine Officer The Marine Officer (ISSN No. 10759069) is Periodicals Postage Paid at The Marine Engineers’ Beneficial Association (M.E.B.A.) published quarterly by District No. 1-PCD, Washington, DC is the nation’s oldest maritime labor union established Marine Engineers’ Beneficial Association POSTMASTER: in 1875. We represent licensed engine and deck officers (AFL-CIO). Send address changes to the aboard seagoing vessels, ferries, LNG and government- Tel: (202) 638-5355 Marine Officer contracted ships. Our members also serve on tugs and Fax: (202) 638-5369 444 N. Capitol Street, NW, Suite 800 barges, cruise ships, Great Lakes vessels, drillships and in Marco Cannistraro Washington, DC 20001-1570 various capacities in the shoreside industries. Special Projects Visit the M.E.B.A. website at In times of military contingency, our members sail into (202) 257-2825 www.mebaunion.org war zones to deliver critical defense cargo to our fighting [email protected] forces. M.E.B.A.’s expertise and proven track record of readiness, safety and loyalty in answering America’s call to action is unrivaled in the world. Message from the President Maritime Security Program = National Sealift Capability = US Flag Vessels = Active Mariner Job Base How is it at a time when most in our industry are focusing on short and long term maritime strategies and policy, there are also those in Congress and special interests intent on dismantling programs that maintain US flags on our merchant vessels? Each US flag commercial ship directly translates into jobs which maintain an active mariner base. This is not the first time in history there has been total disregard for our Fourth Arm of Defense, it has happened time and again in the past and always at the end of conflicts overseas. There are those who have chosen to ignore the accomplishments of our Merchant Marine in recent years and the fact our US flag fleet is once again at a critical crossroads, in dire need for a strategic long term maritime policy. Integral in this need is not only immediate action in the short term but also a long term commitment which will enable those in the commercial maritime sector to make long term capital investment decisions with confidence. This in turn will support employment in the industry for years to come. Without investment in the maritime industry, the US flag fleet will continue its decline and active mariners will disappear as jobs are lost. It was recommended recently by a Congressional appropriations committee that the MSP budget be reduced by $20 million dollars. At $186 million dollar per year funding for 60 commercial vessels, $20 million represents an approximate loss of 6-7 vessels. Taking into account the economic environment and budget pressures, the MSP funded at $186 million is essentially peanuts in the scheme of things especially given its value to National security. As an example; in 1984 I worked on shipyard contracts for three SL-7 container ships, which were converted to strategic sealift vessels. All in, including the vessel purchase cost, contract conversion and growth, four of these vessels cost in 1984 dollars approximately what the MSP funding is today in 2014 dollars. Another simple comparison is the MSP cost is approximately the same as three F-18 fighter jets. The point is the MSP is extremely cost effective for the access it provides to an existing maritime intermodal transportation system without requiring our government to make capital investment in the same. The MSP, which has been cited by the OMB as a highly effective program, is an obvious win-win at a time when money is scarce and everyone is looking to maximize return on investment. Those of us in the commercial industry and especially those in the military are very aware of the leveraging or multiplying effect the $186 million dollar MSP funding has when it comes to maintaining these commercially viable and militarily useful cargo ships, without the government having to build a fleet of their own. This funding not only provides access to the 60 commercial cargo vessels but the intermodal transportation infrastructure these vessels utilize daily. This access provides the Department of Defense with the necessary logistics network required to support, project and protect our military overseas during war, crisis or emergencies. With respect to the current MSP funding and proposed cuts; taking into consideration current market conditions, the restoration of full MSP funding, along with a review of the apparent need for increases in annual payments should be obvious actions at this point in time. The cost of replicating the access the MSP provides is unfathomable and needs to be considered in any decision making process. It is time for those in the Department of Defense and the military, who have acknowledged the accomplishments of our US Merchant Marine in past and recent conflicts, to speak up and join forces with the commercial maritime industry and labor unions along with the Maritime Administration (MarAd) and the Military Sealift Command (MSC). If our Government actually wants a US Merchant Marine in the future that is capable of continuing to respond in times of peace and war, then it needs to take action now. MSC Watson Class Turnover Patriot Contract Services (PCS) has added eight Watson Class LMSRs to their fleet and employment for numerous M.E.B.A. continued on page 2 Marine Officer 1 Message from the President continued from page 1 members. These are very good jobs on MSC FOS vessels. The vessel turnovers have been completed and from all reports went smoothly and were highly praised by both PCS and the Military Sealift Command. I want to personally congratulate everyone involved in the Watson Class turnover process as it was another major achievement that we in the industry, specifically M.E.B.A., do without hesitation. Large scale operations such as turnovers or re-flags are extremely labor intensive. These are no small feats but may appear to be so because they are not always front and center, many times occurring overseas far from the scrutiny of most. There are many long days and nights which can drag on into months depending on vessel condition and resources provided. With the small crews employed, these accomplishments should not be minimized by anyone. I believe M.E.B.A. members have once again proven that we practice “professionalism” above all else. All mariners, regardless of union affiliation or rank, are responsible for operating, maintaining and repairing, both critical and costly machinery and equipment. It is what we do and we are professionals because there are a select few in the world who have the qualifications to do so. At the end of the day, what ultimately is accomplished is a direct reflection on you, the individual and our Union. There is absolutely no reason not to take pride in accomplishments such as these. M.E.B.A. Jones Act Tanker Companies OSG and ATC The M.E.B.A. has always had a variety of jobs to choose from and I’ve always said our members will find their niche and gravitate to the work or locale that suits them most. In this edition of the Marine Officer we’ve decided to put the spotlight on two of our Jones Act tanker employers who, among others, provide stable employment and job security. OSG and ATC provide for numerous jobs within the M.E.B.A., both with relatively new fleets of tankers in the Jones Act trade. Since January we have worked together with both companies to determine better ways to consistently provide and build on a more experienced M.E.B.A. member base which will enjoy returning to work for both companies. We have also talked with a number of our contracted companies over the past several months concerning retention of mariners and what both the M.E.B.A. and the companies can do to improve our individual situations. I believe we have agreed on a number of ways to accomplish this which involves effort from both the M.E.B.A.