AFL-CIO Metal Trades Dept. Seeks Ruling for Jones Act

Friday, May 19, 2006
The AFL-CIO Metal Trades Department (MTD), representing workers at Aker Shipyard in Philadelphia, has urged the U.S. Coast Guard to investigate the yard's "partnership" with South Korea's Hyundai Mipo Dockyard to determine whether ships Aker is building, specifically a series of ten Veteran Class MT-46 Product Tankers, comply with the requirements of the Jones Act. The Department has also held discussions with key members of Congress to start inquiries on the Hill. The Jones Act and other maritime laws require that shippers use vessels built in the United States and owned by United States citizens to haul commodities between U.S. ports. MTD maintains that Aker's relationship with Hyundai violates the terms of the Jones Act. Aker is importing prefabricated steel bulbous bows and stern tubes directly from Hyundai. In addition, Aker is importing pre-assembled equipment modules and other components from HMD and other South Korean companies for the construction of double hull tankers that Aker intends to be used in the Jones Act market.

"Congress passed the Jones Act to protect the United States shipbuilding industry so that, in times of emergency, our country has the facilities and the employees to produce vessels. The MTD believes that Aker's practices undermine the Jones Act by allowing important components of these vessels to be prefabricated or preassembled overseas rather than in the United States generally, or at the Philadelphia Shipyard in particular," declared MTD President Ron Ault. "We have it on good authority that the ship Aker is now building comes right out of boxes brought in from South Korea," he added. Ault charged that Aker is also violating the terms of the partnership agreement with the city of Philadelphia and the state of Pennsylvania that brought them into the Philadelphia Shipyard in the first place. "This is little more than a 'paint by numbers' prefabricated South Korean 'Kit' ship," Ault said. "We are talking about over 300 shipping containers of pre-assembled ship modules and components from South Korea and Germany. It isn't like we can't do this work. We built the first four ships for Matson Lines, proving we can build American Jones Act ships in Philadelphia. Now, they are bringing in everything already pre-assembled right down to things as simple as ladders and piping." Aker's forerunner, Kvaerner Shipbuilding, was granted subsidies worth over $500 million to bring commercial shipbuilding back to the Philadelphia region. The pact includes a $1 per-year lease on the old Philadelphia shipyard grounds. Under the terms of that deal, the company agreed to rehire shipyard workers displaced with the shutdown of the Navy Shipyard and to set up apprenticeship programs to train local workers. Leaders of the Philadelphia Metal Trades Council say that Kvaerner has brought in foreign shipyard workers to "train" U.S. workers in how to bolt and weld together the pre-fabricated parts. However these foreign workers usually are given a section of the ship to complete at the Philadelphia yard without any U.S. workers being assigned to that project.

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Zvezda Shipyard Comes Up Despite Western Sanctions

German and Finnish partners continue to build Russia’s Far Eastern “Zvezda” shipyard for Arctic oil exploration ships, in spite of Western sanctions, reports Sputnik.

Zamakona Yards' Commitment to Well-being

Recently employees of Zamakona Yards participated in a training course for maintaining Health, Safety and Environment (HSE). The theoretical practice focused on working at heights,

Ferus Smit to Launch Newbuild Bulker

Ferus Smit will launch newbuild bulk carrier Arklow Breeze on Friday, March 20 at Westerbroek.   Arklow Breeze is the sixth and last vessel of a series to be

Passenger Vessels

British Queen to Name New Ship

Queen Elizabeth II will christen P&O Cruises’ new flagship Britannia in Southampton, England, on March 10. She will be accompanied by her husband, Prince Philip, the Duke of Edinburgh.

Drowning at Castaway Cay

Police are investigating the apparent drowning of an American cruise ship passenger off at Disney’s private island in the Bahamas - Castaway Cay in the Abacos.

Great Lakes Shipping Worries about Tough Spring

Ice conditions have been causing concern for Great Lakes shipping industry. The satellite images show that the Great Lakes once again almost entirely covered in ice.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4764 sec (2 req/sec)