August 26, 2008
From the Metal Trades Department (AFL-CIO)
Metal Trades Department President Ron Ault issued the following comments following the decision by U.S. District Court Judge Gene Pratter in the Metal Trades Department’s suit against the U.S. Coast Guard:
The Metal Trades Department is disappointed in the decision of District Court Judge Gene E. K. Pratter, finding that the Coast Guard’s acted “reasonably” in its determination permitting Aker Philadelphia Shipyard to construct foreign kit ships. We have asked our attorneys to analyze the decision to see if there are adequate grounds for a reversal on appeal.
On the other hand, we are encouraged to see in Judge Pratter’s decision an allusion to the fact that there can be “reasonable” interpretations other than the one at issue here, given the same facts.
We maintain that the practice of allowing foreign shipbuilders to manufacture, assemble and transport massive segments of a vessel for final assembly in the United States is a blatant violation of the intent of the Jones Act. We will continue to pursue justice through the courts and will certainly press Congress to close off this loophole.
We assert, once again, that the U.S. shipbuilding industry cannot survive continued encroachment by foreign competitors unless the law is on our side. Our interest in pursuing these issues is dictated by what we see as the inevitable loss of hundreds of thousands of skilled jobs in shipyards and related enterprises. In this case, the Coast Guard holds an extremely limited scope of what exactly constitutes the shipbuilding industry—ignoring the essential supply chain of enterprises that provide a wide range of products that go into the construction of a seaworthy vessel.
Ironically, because of the depressed state of the economy and the weak dollar, the U.S. could soon find itself in the position of enjoying a competitive advantage in the price of commodities essential to shipbuilding—including steel—relative to the world market. And, because of the long-term decline in shipbuilding, we now see some shipbuilders claim that they must resort to hiring foreign workers on H2B visas to fill their manpower needs.
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Metal Trades Department, AFL-CiO • 815 16th Street, NW •Washington, DC 20006
Phone: 202-508-3705 • Fax: 202-508-3706 • email: metaltradesweb@gmail.com
