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CONGRESSIONAL RECORD— Extensions of Remarks E663 HON May 1, 2014 CONGRESSIONAL RECORD — Extensions of Remarks E663 are almost exclusively bilateral. As such, Today, in light of NAI’s application for a EU Open Skies Agreement in a productive they reflect a balance of benefits for the U.S. foreign air operator’s certificate, as well as and responsible manner. and our trade partner, often with in-country the plethora of public comments that the With this background, I believe that this is and beyond operating rights, and they are DOT has received on this application, I be- an important inflection point for how we as overseen by the Departments of State, lieve that the inclusion of Article 17 bis and a nation project and secure America’s role in Transportation, and Justice, rather than the the concerns that led to its inclusion were the global aviation marketplace. The nego- United States Trade Representative. Given particularly prescient. tiators for both sides in the U.S.-EU Open the complexity and size of the U.S. aviation Mr. Secretary, you and the DOT Inter- Skies Agreement negotiations understood market—which accounts for over half of the national policy staff are familiar with the the risks and adverse consequences that irre- world’s aviation marketplace—retention of details of NAI’s application and business sponsible liberalization could pose to the air- this model is necessary to ensure that the model, but key facts are worth repeating: line industries and workforces on both sides exchange in air traffic rights is done in a NAI is a subsidiary of Norwegian Air Shuttle of the Atlantic. They resisted deliberate ef- way that promotes strong safety, labor and (NAS), a low-cost European carrier based out forts to dismantle the U.S. ownership and working condition standards, while also en- of Norway. When Norway became a signatory control and cabotage laws, and they in- suring an equitable competitive environment of the U.S.-EU Open Skies Agreement in cluded, for the first time ever, a labor article for U.S. airlines. Critical to achieving this 2011, NAS was afforded the same access to air in the final agreement. In doing so, they goal has long been the continued enforce- traffic rights under that agreement as other made an unmistakable statement that the ment of U.S. foreign ownership and control EU carriers. Rather than expand its oper- terms of competition must not be set by and cabotage laws, along with strong U.S. ations with its existing corporate structure, those who would seek to gain an unfair ad- DOT and DOJ regulatory oversight. its workforce and collective bargaining vantage at the expense of quality jobs and The negotiation of the U.S.-EU Open Skies agreements, NAS created NAI and proceeded high labor standards. agreement, which began in the middle of the to register its long-haul aircraft in Ireland The Department should implement the last decade, presented many unique chal- and obtain an Irish Air Operator’s Certifi- Agreement in the spirit of Article 17 bis and lenges. While the European Union is an eco- cate—effectively becoming an Irish airline concern for both fair competition and bal- nomic and political union of 28 member despite the fact that it has no announced anced trade benefits. Were NAI to be allowed states, each of these states has retained its plans to operate in Ireland. to operate as proposed, the dynamic of trans- This move allowed NAS to expand its long- respective governmental aviation regulatory atlantic aviation competition will be haul operations through NAI, but also to es- authority. Therefore, rather than dealing changed for the worse, creating a situation cape Norway’s social laws and to evade exist- with a single aviation regulatory body and where Flags of Convenience become the ing collective bargaining agreements with one set of labor and social laws as we had norm, not the exception. its Norwegian pilots and flight attendants. with previous agreements, we were dealing I urge you to reject the NAT application, For example, NAI’s pilots are based in Thai- with multiple aviation regulatory authori- and thereby uphold the spirit and intent of land and employed under individual employ- ties and sets of labor and social laws. While the U.S.-EU Open Skies Agreement and Arti- ment contracts that are covered by the laws there are base standards for safety and labor cle 17 bis. Thank you for your consideration of Singapore. These pilots are then con- laws, the individual nation-state laws still of my views on this vital international avia- tracted to NAI. The individual employment differ widely. tion policy issue. Given the unique nature of negotiating contracts prevent collective bargaining, and Sincerely, with the EU, many of my colleagues and I allow NAI to drastically reduce labor costs JIM OBERSTAR, M.C. were concerned about proposed changes in and gain an unfair competitive advantage regulatory structure that would allow any over U.S. and European carriers who cur- f EU airline to operate from any point in the rently operate in the transatlantic market. OUR UNCONSCIONABLE NATIONAL EU to any point in the U.S. and to establish The workforce arrangement for flight at- subsidiaries in other EU states. Despite this tendants is still evolving, but what I have DEBT ‘‘European status’’ for operating and cor- learned is that NAI is hiring and basing its porate rights, there was no EU-wide law that cabin crewmembers outside of its home HON. MIKE COFFMAN governed key labor-management relations country in what is clearly a plan to secure OF COLORADO aspects of these airlines. Instead, these as- substandard wages and working conditions pects—such as selection of bargaining rep- and to blatantly evade its collective bar- IN THE HOUSE OF REPRESENTATIVES resentatives and contract negotiations— gaining obligations in Norway. NAI is pur- Thursday, May 1, 2014 were, and continue to be, subject to the na- suing, quite simply, what in maritime law is tional labor laws of the respective European called a ‘‘Flag of Convenience’’ strategy. Mr. COFFMAN. Mr. Speaker, on January countries. NAI has not denied that it registered in 20, 2009, the day President Obama took of- During the negotiations, EU representa- Ireland to avoid the application of Nor- fice, the national debt was tives expressed concern that such an ar- wegian labor laws to its crews. Other eco- $10,626,877,048,913.08. rangement could lead to ‘‘forum shopping’’ nomic justifications presented for selecting Today, it is $17,447,321,527,551.15. We’ve where European airlines would seek to oper- Ireland over other possible places to incor- added $6,820,444,478,638.07 to our debt in 5 ate out of countries with less robust labor porate, the validity of which also have been and social laws. This could allow airlines to effectively rebutted by several opponents, years. This is over $6.8 trillion in debt our na- seek the lowest common denominator in appear to be intended to distract from this tion, our economy, and our children could terms of labor and regulatory standards central and undisputed motivation. The com- have avoided with a balanced budget amend- thereby lowering their own operating costs pany is thus taking advantage of the oppor- ment. but driving down standards throughout the tunities provided by the U.S.-EU Open Skies f EU. In other words, the EU was concerned Agreement in order to lower its own labor that new airlines could be launched using a costs and undercut the competition, the very HONORING CARMEN VELASQUEZ NAI-like business model. scenario that EU negotiators feared when OF CHICAGO FOR HER LIFETIME This concern led negotiators to include in Article 17 bis was included in the U.S.-EU OF SERVICE TO THE UNDER- the agreement Article 17 bis (‘‘Social Dimen- agreement. SERVED LATINO COMMUNITY IN sion’’), which states that ‘‘the opportunities I believe that the evidence and arguments created by the Agreement are not intended submitted in the public docket provide the CHICAGO to undermine labour standards or the labour- Department with ample justification to deny related rights and principles contained in the the application. HON. RAUL RUIZ Parties’ respective laws.’’ It further states During my years of service on the House OF CALIFORNIA that ‘‘the principles in paragraph 1 shall Committee on Transportation and Infra- guide the Parties as they implement the structure, conducting vigorous oversight of IN THE HOUSE OF REPRESENTATIVES Agreement.’’ The fact that there was no international aviation trade, I learned that Thursday, May 1, 2014 equivalent to Article 17 bis in any of the pre- liberalization and market expansion could vious Open Skies agreements with EU mem- provide numerous benefits to consumers, Mr. RUIZ. Mr. Speaker, I would like to rec- ber states is a direct acknowledgement of open business opportunities for U.S. carriers ognize a dear friend of mine, Carmen the challenges posed by the regulatory and and create jobs. But I also observed that ef- Velasquez of Chicago as she retires from her legal arrangement within the EU. fective market expansion required the position of executive director at Alivio Medical Article 17 bis was a critical factor in the thoughtful and careful approach of balancing Center, for her incredible dedication to the ‘‘Agreement’’. I applauded its inclusion as an reduced trade barriers with the assurance of medical community and the underserved important and necessary step in protecting fair competition and the public interest. We against the use of market-opening aviation understand the strategic and economic sig- Latino community of Chicago. trade agreements to lower labor standards nificance of the U.S.
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