AMO Currents - A strong year sets the course for the future of AMO

AMO Currents - Posted: December 4, 2013

A strong year sets the course for the future of AMO

By Tom Bethel
National President

This year opened with the announcement of construction orders for new ships to be operated under contract with American Maritime Officers. The year draws to a close on the same note - more contracts for the construction of new ships, and new long-term jobs on the near horizon for the membership of AMO.

This theme played across the months between in 2013. The construction contracts announced this year alone will equate to as many as 22 new Jones Act ships entering commercial service over the next few years - all of them to be manned by AMO officers. Add to these the upcoming delivery of the M/V Marjorie C, and the order placed by TOTE at the close of 2012 for two LNG-powered 3,100 TEU ships for the Puerto Rico trade, with options for three more vessels to provide additional domestic service.

These commercial orders collectively amount to a powerful resurgence in U.S. shipbuilding and a strong and secure future for the nation's largest union of U.S. merchant marine officers.

Looking back over 2013, there have been many positive developments to focus upon, and there remains much to look forward to in the months and years ahead. Together we have also faced challenges and setbacks during the year, circumstances that can often arise in our extremely competitive industry.

The most disturbing of these was Military Sealift Command's award of the operating contract for the eight Watson Class LMSRs to Patriot Contract Services. The contract award underscores the competitive and unpredictable - and in this case incomprehensible - nature of military and government contracting, something AMO must frequently grapple with as the dominant U.S. officers' union in seagoing government program work.

As of this writing, the contract award is under protest by the incumbent operator, Ocean Ships, Inc., and AMO officers are onboard the ships under a short-term extension of the current contract. Even under this dark cloud, the professionalism of the AMO membership shines brightly, as the AMO officers working in the Watson Class fleet continue to apply characteristic dedication and skill to the job at hand in order to sustain the superior service provided to the Armed Forces by these crucial LMSRs since they were brought out of the yard.

This remarkable attitude - typical of the membership this union's National Executive Board is privileged to represent - was again apparent as the Ocean Giant was turned over at the beginning of November after being chartered to a non-AMO company. The ship's master, Captain Tim Adams, reported that he and his crew - including Chief Engineer Brian Davis, Chief Mate Christopher Holmgren, First Assistant Engineer Igor Lucarevskiy, Second Mate David Vela, Second Assistant Engineer Frank Altomare, Third Mate Robert Sandner III, and Third Assistant Engineer Matthew Gonzalez - ensured a smooth transition and turned over the ship in the same manner they would like to have a ship turned over to them.

Captain Adams made note of the gratitude expressed by representatives of ship's owner and her operator for the professional and thorough approach of the AMO officers to handing the ship over, and of the gratitude and perhaps shock evident in the representatives of the other officers' unions and the officers coming onboard the ship during a three-day overlap.

The conduct of the AMO officers on the Ocean Giant was not shocking to me, nor would it be a surprise to any of our contracted employers in the U.S. and international fleets. The professionalism of the membership is the strength of AMO. It distinguishes us in the maritime industry and makes all things possible for our union.

Foremost among the returns are new jobs and ever expanding opportunity for AMO members. In the coming months, we are looking forward to the christening of the second mobile landing platform, USNS John Glenn, at General Dynamics NASSCO, as well as the delivery of the Marjorie C - Pasha Hawaii's combination container and roll-on/roll-off ship under construction at VT Halter Marine in Mississippi.

Similarly, 2013 opened for AMO with the christening of a new ship, the Florida - the second of two Jones Act tankers Crowley Maritime Corporation purchased from Aker Philadelphia Shipyard in 2012. The first is the Pennsylvania.

Additionally, January of 2013 brought with it the implementation of substantial improvements to the AMO Defined Contribution Plan instituted by the plan's joint union-employer trustees. The DC Plan trustees had voted to both establish a minimum 6 percent contribution rate and to increase by 25 percent contributions directed from the Master Operating Trust to the individual accounts of DC Plan participants. The trustees continue to examine all options for responsibly accelerating the rehabilitation plan for the defined benefit AMO Pension Plan so the DC Plan's contribution rates under Schedule 2.1 can be implemented.

On that note, the financial standing of the defined benefit AMO Pension Plan rose from the "red zone" and "critical status" as defined by the Pension Protection Act for the first time since 2009. Horizon Actuarial Services reported this year the plan had reached the law's less difficult "yellow zone" and "endangered status" on December 28, 2012. The improvement in the plan's standing is the result of favorable investment performance, the rehabilitation strategy adopted by the trustees in 2009 and additional measures applied by the trustees in consultation with Horizon.

Also in January, the U.S.-flag fleet marked a major policy victory when the President signed into law legislation renewing the Maritime Security Program through 2025. Although AMO continues to work with maritime labor, our contracted employers and key members of Congress to secure a full appropriation for the balance of fiscal year 2014, the 10-year reauthorization provides a stable foundation for program's 60-ship fleet during these extremely difficult political times. At present, the program is fully funded through January 15, 2014 under a short-term continuing resolution.

In March, the Navy christened the USNS Montford Point, the first mobile landing platform to be built by NASSCO. Ocean Ships is operating the MLP for MSC and the AMO officers onboard have consistently earned high praise for their performance and dedication as this new vessel successfully advanced through a series of trials and evaluations.

In the same month, the Navy christened the USNS Maury (T-AGS 66) at VT Halter Marine in Mississippi. The USNS Maury will become the seventh vessel in the T-AGS fleet operated by Maersk Line, Limited subsidiary 3PSC and manned by AMO in all licensed positions.

In May, AMO participated in the christening of Seabulk Towing's new harbor tug, M/V Athena. AMO represents all officers and crew members in the company's docking and towing fleets operating from three ports in Florida.

In June, another significant political victory for the U.S.-flag fleet was achieved as the House of Representatives voted 203-220 to defeat a legislative amendment that would have imposed radical changes sought by the Obama administration to PL-480 Title II Food for Peace. The battle to sustain the Food for Peace program continues this month during the House-Senate conference on legislation known as the farm bill.

Also in June, a series of construction orders for new ships commenced with the announcement that American Petroleum Tankers had ordered four product carriers from NASSCO with options for four additional tankers. AMO represents all licensed officers aboard the five State Class tankers operated for APT by Intrepid Personnel and Provisioning.

In August, Crowley announced construction orders for up to eight Jones Act tankers at Aker Philadelphia. AMO will also represent all licensed officers on these ships.

In September, Seabulk Tankers announced a contract for the construction of two Jones Act tankers at NASSCO. In November, the company expanded its order to a total of three tankers with the option for a fourth.

As new construction orders were being announced, the container feeder ship M/V Marstan was re-flagged and entered service under U.S. registry in a run similar to that previously served by the APL Balboa. The Marstan is operated by Osprey Ship Management, and I am pleased AMO members will continue to work in this important trade.

AMO is prepared to meet the demands presented by all of the new commercial work now in the pipeline. Working proactively, AMO has fostered several initiatives as practical and promising solutions to ensure the manpower needs of our contracted operating companies will be met going forward. These initiatives include The Engineering Candidate Hawsepipe (TECH) Program, a stipend program for maritime academy cadets, AMO's targeted military recruiting program and a streamlined 30-day program for earning the Tankerman PIC endorsement.

Combined with the professionalism and dedication of the AMO membership and the premier training provided by STAR Center, I am confident these initiatives will contribute to sustaining AMO's status for years to come as the largest and strongest union of U.S. merchant marine officers.

Many of the developments this year provide everyone in our union with much to celebrate during the holiday season. In that spirit, and on behalf of the AMO National Executive Board, I thank AMO members everywhere for their continued support, and I extend best wishes to all AMO families for happy and healthy holidays and a prosperous New Year.