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 Today

The Maritime Industry's original and most viewed E-News Service

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


BIMCO Signs New LNG And Shipbuilding Supervision Contracts

The twice yearly meeting of BIMCO’s Documentary Committee took place in Hamburg on 19 November. In his first meeting as Chairperson of the Committee, Belgium’s

Damen Marine Components Opens Jiangyin Plant

Damen Marine Components (DMC) is proud to announce the opening of its brand new facility in Jiangyin, China.Those present at the opening ceremony included CEO

Henriksen Unveils Strongest SOLAS Boat Lifting Hook

H Henriksen of Norway has received SOLAS certification for a new off-load single-point boat lifting hook capable of holding up to 22.5-tonnes. The quick release

Passenger Vessels

Extended Warranty from Yanmar for Sailboat Engines

Yanmar Marine International B.V. has introduced an extended 3 years’ period of YANMAR Limited Warranty for Sailboat Engine Models. This extended warranty of

Norwegian Escape with Biggest Scrubbers sets Sail

On a sunny October day in the German harbor-town of Hamburg, M/V Norwegian Escape, a brand new cruise ship, sets sail for the first time. On board are five Yara SOx scrubbers – one for each engine.

First Cruise Ships Dock at Abu Dhabi’s New Stopover

Abu Dhabi Ports─the master developer, operator and manager of ports and industrial zones in the Emirate―has started welcoming cruise liners at Sir Bani Yas Island,

Maritime Contracts Maritime Security Maritime Standards Navigation Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0722 sec (14 req/sec)