MARINE ENGINEERS' BENEFICIAL ASSOCIATION (AFL-CIO)
         "On Watch in Peace and War Since 1875"

MEBA TELEX TIMES       DECEMBER 21, 2007

The Official Union Newsletter

NUMBER 51

In this issue...
P.A.F. successes on Hill...Good news for Short Sea Shipping...Bad news for Tonnage Tax haters...New jobs for members...All tied up with a nautical bow, big news comes in a small package as we remove the red tape and take the wraps off another issue. Give us a fair shake and tear open our latest blue ribbon edition - it's the maritime thoughts that count! God's gift to newsletter-lovers, we present the Telex Times -- It's just what you always wanted!

CONGRESS DEPARTS FOR THE YEAR LEAVING PLENTY OF PRESENTS UNDER THE TREE FOR MARITIME
Congress left Washington this week after passing a variety of legislation benefiting the Merchant Marine. Included in the gift basket was full funding for the Maritime Security Program, language creating a short sea shipping program within the Department of Transportation, and funding for a variety of other important maritime programs including TWIC, Title XI, Port Security grants and the Maritime Administration.

The President signed H.R. 6, the Energy Independence and Security Act, into law on December 19th. Included in the provisions of this bill was authority granted to the Department of Transportation to create a short sea shipping program, promote the program, encourage federal agencies to use short sea shipping wherever possible, and other incentives designed to expand what MarAd has called "America's Marine Highway". A federal board will be established to identify and seek solutions to impediments hindering effective use of short sea transportation. Members of the board will include representatives from the U.S. Department of Transportation, U.S. Environmental Protection Agency and other federal, state, and local governmental entities as well as private sector entities.

Research on short sea transportation will be pursued regarding the environmental and transportation benefits to be derived from short sea transportation alternatives for other forms of transportation. Research areas will include technology, vessel design, and other improvements that would reduce emissions, increase fuel economy, and lower costs of short sea transportation and increase the efficiency of intermodal transfers; and solutions to impediments to short sea transportation projects designated. A report on the short sea transportation program must be submitted to Congress within 1 year. It will include a description of the activities conducted under the program, and any recommendations for further legislative or administrative action that are considered appropriate.

This represents the first major action on the part of Congress to promote short sea shipping since the industry began its push for increased Congressional support. It is hoped that the increased authority given to DOT by the new law will allow MarAd to work with industry, labor and state and local governments in much the same way that they have with the LNG sector. MarAd, under the helm of Administrator Sean Connaughton, has been very successful in promoting the employment of Americans aboard LNG vessels and it is hoped that he will have the same success with short sea shipping under the authorities granted by this new law. Also included in the law are provisions that will allow companies engaged in short sea shipping to use their tax free capital construction fund money on short-sea capable vessels.

The House and Senate were also successful in passing an Omnibus Appropriations Act this week. The bill, which provides $566 billion in spending, was a conglomeration of a number of appropriations bills that had not made it through the perils of the legislative process. These bills included the Transportation Appropriations bill, which includes MSP, Maritime Administration, Title XI and a variety of other maritime related funding. Thanks to lobbying efforts by maritime labor, funding from the MSP was increased from the $154.5 million requested by the President in his budget request to the fully authorized level of $156 million. This was a major victory for maritime, especially given the major restraints placed on spending increases in the 110th Congress, and paves the way for a significant increase next year for MSP. The bill also includes $400 million in port security grants and $8.1 million for a TWIC card reader pilot program, both of which have the support of the industry. Title XI received $5 million in appropriations, which was an increase over last year's appropriation. The Omnibus bill is expected to be signed by the President this week.

Successes like this on Capitol Hill are made possible in part by a strong Political Action Fund. Continue to support M.E.B.A.'s P.A.F. and it, in turn, will continue to work for you. Following is another article which further proves the point:

CONGRESS HALTS EFFORT TO WEAKEN TONNAGE TAX
The efforts of the M.E.B.A., American Maritime Congress and a maritime labor coalition were rewarded this week as Members of Congress chose to strike out a provision in a bill passed that would have repealed the tonnage tax in the Puerto Rico trades. M.E.B.A. fought the inclusion of this provision within the Technical Corrections Act and was aided by the U.S. Chamber of Commerce which denounced the provision saying it would make American ships less competitive in the trade. The Chamber pointed out, "At the very moment we need to help make U.S. carriers more competitive in the global marketplace this tax plan is not only penalizing our own shipping companies it is doing so retroactively breaking the legal and financial arrangements the Congress put in place and making it harder for American companies to expand, grow and plan for the future." The Chamber's opposition helped but the energy the M.E.B.A./AMC/ Maritime Labor Coalition put in to dissuade Congress from pursuing that path was crucial toward the final result. In addition, M.E.B.A.-contracted Horizon Lines was relentless in criticizing the anti-tonnage tax provision saying that it would, "reinstitute a high tax regime for U.S.-flag vessel operators in the Puerto Rico trade while they are facing increased competition from foreign-flag carriers - operating under low tax regimes - carrying goods sourced in other countries. The resulting financial blow to Horizon Lines, which operates only U.S.-flag, U.S. citizen crewed vessels, including in that trade lane, will adversely impact the company's ability to offer and expand competitive service. A loss of hundreds of current and future jobs can be readily envisioned."

Horizon issued a statement after it was learned that the provision would not be pursued saying that this success was achieved, "in no small part due to the active support of our maritime unions, the U.S. Chamber of Commerce and the government of Puerto Rico."

In their statement they praised the creation of the tonnage tax and mentioned that this important law has been enabling the company to "begin serious exploration into initiating short sea shipping operations on the east coast of the United States."

They hailed the passage of legislation (detailed in the first article in today's Telex) that will provide a boost to short sea shipping. "The recent focus on Congressional action relating to the tonnage tax has overshadowed additional and significant progress toward enabling short sea shipping activity and other progress for the U.S.-flag maritime industry. Contained in the omnibus appropriations legislation passed by Congress is $5 million in new funds for the Title XI ship building program. The program has a 20-1 guarantee structure that will effectively provide $100 million in loan guarantees for new ship construction. This represents a reinstitution of funding for the title XI program after years of zero funding and bodes well for the future. In addition, included in the energy legislation already signed into law are reforms to the Capital Construction Fund (CCF) that will allow CCF vessels to operate in coastwise trade. When combined with pending legislation that would provide Harbor Maintenance Tax relief for coastwise trade, we believe that the outlook for short sea shipping, and the accompanying job creation and environmental relief, is very positive and deserves the attention of the maritime and environmental community. Horizon Lines will continue to work aggressively with our maritime unions and the broader business community to secure final passage of this remaining short sea shipping agenda and to make coastwise trade a reality."

M.E.B.A. CONTRACTED ASM/PATRIOT WINS MSC BID FOR TWO SPECIAL MISSION SHIPS
Patriot Contract Services, a subsidiary of M.E.B.A.-contracted American Ship Management has been informed by the Military Sealift Command that they are the apparent winner of an MSC bid for two Special Mission Ships. The announcement was made last week but five days are allowed for potential protests to "small business set aside" contract awards. As of press time, there had been no indication that the award would be protested.

The USNS WATERS is a Hydrographic Survey Ship built in 1993 that supports missile range instrumentation and submarine navigation research missions. The USNS HAYES, "the quietest research ship in the world," was converted into an Acoustic Research vessel in 1992. The new contract is scheduled to go into effect in late January. The M.E.B.A. is gearing up to serve in the engine room of the vessels with MM&P officers prowling the deck. The ships had been managed by 3PSC, a non-M.E.B.A. company, which had taken over the ships in January 2003.

SOMEONE LEFT THEIR MERCHANT MARINE MEDALS AT THE SCHOOL
One of our members apparently left their Merchant Marine Expeditionary Medals at the Calhoon M.E.B.A. Engineering School. Was it you? Well, if it was, you should contact Lisa McNeal at the School by calling (410) 822-9600, ext. 322 or email her at lmcneal@mebaschool.org 

GHOST FLEET IS SHORT FIVE RUSTBUCKETS
MarAd announced that it has swung deals to rid the National Defense Reserve Fleet of five obsolete vessels including four from the James River (Newport News, VA) and one from the NDRF fleet in Beaumont, TX.

The four from the James River Reserve Fleet had previously been under a contract with North American Ship Recycling of Sparrows Point, Md., which ceased operations before it could take possession of the ships. Three ships from the James River fleet, PRIDE, SCAN, and CAPE CHARLES will be dismantled at the Marine Metals, Inc. facility in Brownsville, Texas, under the terms of three contracts worth a total of more than $1.4 million. The SOUTHERN CROSS, also a James River ship originally awarded to the Sparrows Point firm, will be dismantled at the Esco Marine facility in Brownsville, Texas under the terms of a contract for $617,600. BANNER, which is currently at the Beaumont fleet site, will also be dismantled at Esco, under the terms of  a contract for $532,726.

All five ships were built in the 1960s. The CAPE CHARLES, a freighter launched in 1963, was constructed at the Bethlehem Steel shipyard at Sparrows Point. PRIDE, SOUTHERN CROSS, and SCAN were built for the Moore-McCormack Company as combination freight and passenger vessels. The freighter BANNER was built in 1961 as the EXPORT BANNER at the NASSCO shipyard in California.

GREEK TANKER COMPANY WITH SOMETHING TO HIDE IS FINED
Ionia Management, a Greek company that manages a fleet of tanker vessels, has been sentenced for its role in falsifying records to conceal the overboard dumping of waste oil and for its efforts to impede the investigation of the U.S. Coast Guard.

U.S. District Judge Janet Bond Arterton for the District of Connecticut fined Ionia $4.9 million and appointed a Special Master to oversee the company's recordkeeping. As part of the sentence, the Special Master will hold hearings every 6 months to review the company's records. Also as part of the sentence, no ships owned by Ionia Management will be permitted into U.S. ports without first installing special monitoring equipment.

Ionia Management was convicted on Sept. 6, 2007, on 13 counts of violating the Act to Prevent Pollution from Ships, three counts of falsifying records in a federal investigation, one count of obstruction of justice, and one count of conspiracy.

From at least Jan. 1, 2006, to March 20, 2007, crew members aboard Iona's  M/T KRITON made false entries in the ship's oil record book indicating that they had regularly used the ship's oil pollution prevention equipment. Evidence at trial proved that the equipment was rarely, if ever, used and, instead, crew members pumped the ship's oil-contaminated wastes and sludge directly from the ship into the ocean using a rubber hose. At least 968 tons of oil-contaminated waste was unaccounted for in the KRITON's oil record books. In addition to falsifying oil record books, Ionia Management submitted false statements in environmental compliance checklists that it was required to submit to the U.S. Coast Guard as part of its probation from the 2004 conviction in the Eastern District of New York. After the Coast Guard investigation of the KRITON began in March 2007, the ship's Chief Engineer and Second Engineer destroyed the rubber hose used to pump waste to the ocean. Chief Engineer Petros Renieris pleaded guilty and was sentenced on Dec. 3, 2007. Second Engineer Edgardo Mercurio pleaded guilty and was sentenced on Oct. 12, 2007.

L.A. COAST GUARD OPENS NEW COMMAND CENTER
Congresswoman Jane Harman (D-CA-36) and Coast Guard Rear Admiral Craig Bone were in attendance this week as the Coast Guard opened up its new $2.8 million, 6,000 sq. ft, Los Angeles-Long Beach command center. The command center will operate 24-hours a day keeping the watch over 320 miles of coastline from San Luis Obispo County to Orange County, including the Ports of Los Angeles and Long Beach. It is located at 1001. S. Seaside Ave Bldg 20, San Pedro, CA.

VACATION BENEFITS - 2007 YEAR END CLOSING
Apply for Vacation and Port Relief Benefits early to avoid the year-end rush.
- OUTPORTS: The deadline for issuing checks dated in 2007 in the Outport offices is Thursday, December 27, 2007 at 2:00 p.m. EST.

- BALTIMORE PLAN OFFICE: The deadline for issuing checks at the Plan Office in Baltimore is Thursday, December 27, 2007 at 5:00 p.m. EST.

Any member who requires that his/her check be dated in 2007 must file before these deadlines. Remember, December 25, 2007 and January 1, 2008 are holidays and the outports and the Plan Office will be closed. It is always wise to plan ahead, so you may want to verify your specific outport holiday schedule with the plan office representative.

Split Your Vacation Payments Between 2007 and 2008
You can submit an Application for Vacation Pay prior to the end of the year and request that the payment of your vacation benefits be split. Two checks will be issued to you, one in 2007 and a second in 2008. The vacation benefits paid in this manner MUST be a continuous vacation period.

Please contact the Vacation Plan staff in Baltimore at 800-811-6322 or 410-547-9111 if you have any questions.

REGULAR MONTHLY MEETINGS
Monday, January 7 - Boston, Seattle;
Tuesday, January 8 - Baltimore, Houston, Jacksonville; San Francisco;
Wednesday, January 9 - Calhoon School, Charleston, New Orleans, Portland;
Thursday, January 10 - L.A., New York, Norfolk, Tampa;
Friday, January 11 - Honolulu.

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