Capt. William T. Dannheim Named MSCPAC Commander

Official Publication of the Seafarers International Union • Atlantic, Guff, Lakes and Inland Waters District • AFL·CIO Vol. 48 No. 9 September 1986 New Rule Allows Foreign Flags All Roads DOD Fires on Cargo Preference Law Lead to ... What began as a squabble between bid for cargo is higher than foreign mine if the costs are excessive and Diego 1 a small U.S. carrier, the Department rates, the Navy will determine it is then waive cargo preference. 1 · of Defense and Iceland could open the "excessive." No one in the industry · "It could be applied any time you J ~iiiii8' doors of $1.8 billion in guaranteed denies foreign-flag shipping is cheaper. have some bureaucrat who simply ar ~;;:;;;- U.S. cargo to foreign ships. ''Sure foreign-flag ships charge bitrarily says your rates are excessive, The Department of Defense has pro cheaper rates. They pay their crews without knowing what your costs are,'' posed a rule to allow foreign-flag ships less, their ships cost less, they have said Albert E. May, executive vice into a trade that since 1904 has been fewer safety and other regulations to president of the Council of American reserved for U .S.-flag ships (see edi follow and they receive backing from Flag Ship Operators. torial page 23). The Navy coordinates their governments. But then nobody While some claim this move is an all military shipments. ever called the Liberian-flag fleet effort to cut costs, most industry ob Currently the 1904 Military Cargo 'America's Fourth Arm of Defense' servers say the new rule is an attempt Preference Act requires that I 00 per either," said SIU President Frank to appease the government of Iceland. cent of all military cargo be shipped Drozak. For many years, supplies to a U.S. on American vessels, unless the cost Air Force and Navy base were trans is excessive and then 50 percent of Now when the DOT attempts to ported by three small Icelandic ships, the cargo may be shipped foreign. The determine.if an American shipping firm because no U.S. carrier was in the Department of Transportation (DOT) is charging excessive costs, the basis trade. However, in 1985 Rainbow has the final say if the cost is excessive. is ''whether the costs or the profits to Navigation, Inc. was founded and Under the DOD proposal, the entire the operator are excessive or other claimed they had rights to the cargo amount of military cargo could be wise unreasonable and not whether under the 1904 Cargo Preference Act. opened to foreign shippers, and the the cost is excessive to the govern Rainbow won the cargo but the gov Navy would be the group which de ment," said Jim J. Marquez, the de ernment of Iceland put pressure on termines if the rates are excessive. partment's general counsel. the U.S. to return the business, or at The fear expressed by opponents to The DOD proposal would give a Pages 12 & 13 the action is that any time an American contracting officer the right to deter- (Continued on Page 24.) Well Bless My Sole New Bedford Fishing Fleet Gathers for Blessing HEN Herman Melville wrote up from the sea so much did the air Today, New Bedford is a major still watch quietly from the docks for W Moby Dick, he gave mention to hold the taste of salt, so much did fishing port and houses the largest their husbands' return from the sea. the whaling port of New Bedford, generations pass on the whaling trade assemblage of fishing boats anywhere The most recent wave of immigra Mass. settled in 1640. It seemed to and sermons at Seamen's Bethel on on the East Coast. The pulpit at Sea tion brought Portuguese fishermen and him the sturdy, small houses and flower Johnny Cake Hill offered up prayers men's Bethel is carved into the shape their families here. Many belong to beds had all been harpooned and pulled for a successful voyage. of a ship's prow. Fishermen's wives the SIU. And each year in August the Portuguese community and all of New Bedford tum out to take part in the Feast of the Blessed Sacrament and (Continued on Page 16.) Bob Vahey Dead Page 3 • President's Column: SIU-NMU Merger, 'Pattern of Approval' Page 2 • Page 24 The procession of New Bedford fishing vessels makes its way to the Coast Guard cutter and the blessing. roza Reagan Aide Misinforms HIS Union is in excellent shape. T We have jobs for our member ship, and they are goodjobs. We have Senate On Ship Crew training programs which are providing our members with the skills to handle Manning Issue these new jobs responsibly and effi ciently. And, as we continue to expand the job opportunities for this member (See President's Report this page.) ship, we continue to grow as an or ganization. EXECUTIVE OFFICE OF THE But-this maritime industry is in PRESIDENT terrible shape. It is in the worst shape OFFICE OF MANAGEMENT AND BUDGET that I have seen it in all of my years WASHINGTON, D.C. 20803 as a seaman and as a Union official. The last of the liner companies, Far Honorable Ted Stevens rell, Lykes and U.S. Lines, are all in Chairman bad financial shape. Sea-Land, an un Subcommittee on Merchant Marine subsidized company, an innovative Committee on Commerce, Science, leader in the industry worldwide, and security of SIU members or the safety and Transportation for many years a financially stable of the ships. United States Senate organization, today is losing millions We have been effecting these crew Washington, D.C. 20510 of dollars each quarter. Waterman, reductions wherever we can to do our August 16, 1986 which astounded the industry by re part in making the U.S.-ftag competi covering from bankruptcy, is facing tive. But, we can't do it all, and we Dear Ted: new difficulties because the Maritime can go no further alone. Thank you for your recent letter concerning S. 2662, legislation Administration is letting other ship We would hope that other unions designed to reform the Operating Differential Subsidy (ODS) program. ping companies into their trade routes. would begin to take a look at their The administration recognizes the need for meaningful ODS reform The Reagan administration contin manning requirements in light of the and would be pleased to explore with you ways to achieve a consensus ues to steer a ruinous "free trade" reality of the shipping world as it is on both the substance and cost of such a legislative package. S. 2662 course despite all of the warning sig today, and to take positive actions already includes several reforms that the administration believes are nals. Efforts by some segments of our within their organizations so that we important, such as authority for subsidized U.S.-flag operators to industry to make the U.S.-flag com can work together to save this indus construct or acquire vessels at world market prices and increased petitive on the high seas are ignored try. If we can do this together, we can operating flexibility necessary to respond more efficiently to market deliberately. In a recent letter to Sen. together per uade Congress that what conditions. Ted Stevens, chairman of the Senate's ever form of operating subsidie are I believe, however, that S. 2662 must go much further in Subcommittee on Merchant Marine, then necessary to keep our industry restructuring the existing ODS program in order for it to be a the director of Reagan's Office of Man viable and our nation's defense needs meaningful reform package. Among other things, the administration is agement and Budget urged the senator secure should be forthcoming. particularly concerned about the lack of change in the areas of crew to drydock any operating subsidy pro * * * size and wages, both of which need to be restructured to improve the gram because of "the lack of change long-term competitiveness of the U.S.-flag fleet. in the areas of crew size and wages ... ' ' Speaking of working together, this Cost is also a critical area. I agree with your assessment that (See the full text of this letter published membership is well aware that we have S. 2662 has significant budgetary problems and believe that its on this page.) been working toward the merger of cost needs to be brought in line with the cost of the existing The fact is that the SIU has substan maritime labor organizations. We feel ODS program. Crew size and wage reforms will help achieve tially restructured crew size and crew that the unity of common efforts to this goal as well as a hard look at the number of ships eligible responsibilities which have resulted in ward common goals is both necessary for subsidy and the need for grants to the small operators. significant savings to its contracted op and proper. We have had many dis With the end of this Congress quickly approaching, I can understand erators. And this has been done without cussions about merger in the past 25 your sense of urgency in seeking early Senate action on S. 2662. On compromising the job security of this years. Just recently, at my request, the other hand, I believe the substantive and budgetary problems Union's membership. AFL-CIO President Lane Kirkland sent associated with S. 2662 are too significant to await conference for Let me give you an example. When letters to all of the maritime unions resolution. Instead, I urge you to address these problems before Sea-Land designed and put into serv with a copy of our merger proposals.

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