A Statement from Metal Trades Department, AFL-CIO President James Hart on the Importance of Investing in U.S. Shipbuilding

A Statement from Metal Trades Department, AFL-CIO President James Hart on the Importance of Investing in U.S. Shipbuilding

Want to Make America Great Again? Invest in American Shipbuilding.

The time to Act is now. It’s time to SAVE THE PHILLY SHIPYARD. It’s time to revitalize the American shipbuilding industry, build the TANKERS needed to transport the energy we harvest throughout the United States and the world. It’s time for the United States to re-enter the recreation and cruise ship industry and most importantly it’s vital that we ensure that America has a merchant fleet capable of building a steel bridge to deliver American fighting men and women the equipment necessary to counter foreign aggression anywhere in the world.

I am sick and tired of American ship builders being forced to fend for themselves while their foreign competition soaks up billions of dollars in government support payments and subsidies.

I’m sick and tired of the American Maritime worker and their families taking in on the chin, losing their pensions and healthcare all in the name of irresponsible corporate greed and government policies. It’s long past time for the President to take the steadfast advice of his top economic and trade advisors at Commerce and Transportation and begin to reinvest in the Jones Act Shipbuilding Industry that is so vital to our nation’s national security.

Our merchant fleet is virtually depleted. Heavily subsidized foreign flagged vessels are feasting at the expense of the American worker and consumer, our manufacturing infrastructure is virtually decimated to the point that even though our cities and states face daunting new infrastructure rebuilds throughout the nation, we are forced to turn to foreign nations to meet our fabrication and material needs.

Ronald Reagan was wrong in eliminating government subsidies to American shipbuilding, and President Trump needs to correct that inequity or at the very least level the playing field and not allow any foreign vessel that receives government subsidies to load or unload at US ports.

# # #

The Metal Trades Department is a trade department of the AFL-CIO. It was chartered in 1908 to coordinate negotiating, organizing and legislative efforts of affiliated metalworking and related crafts and trade unions. Seventeen national and international unions are affiliated with the MTD today. More than 100,000 workers in private industry and federal establishments work under contracts negotiated by MTD Councils. Workers retain membership in their own trade unions.

MTD Supports the Energizing American Shipbuilding Act

MTD Supports the Energizing American Shipbuilding Act

The Metal Trades Department, AFL-CIO strongly supports the Energizing American Shipbuilding Act. We urge Congress to move forward on Congressman John Garamendi’s legislation.

View Rep. Garamendi’s whitepaper on “The Energizing American Shipbuilding Act: A Plan to Create Good Middle Class Jobs, Maintain Critical National Security Assets, Enhance Public Safety, and Strengthen the American Shipbuilding Industry” to learn more.


From the Whitepaper: The U.S. Merchant Marine and shipbuilding industries are strategic national assets critical to national security, with the Department of Defense relying on our U.S.-flag fleet and its pool of trained and credentialed mariners for over 95 percent of national sealift needs in times of war or emergency. Yet this fleet is in a state of precipitous decline: the number of privately-owned U.S.-flag vessels engaged in foreign trade has dropped from 249 in the 1980s to just 78 as of October 1, 2016.

This signals not only the erosion of our sealift capabilities, but also the outsourcing of security and control over the supply chain that underpins our entire economy. The world relies on maritime transportation to move ninety percent of its global trade, but very little of that travels on U.S.-flag ships. Of the 1.4 billion tons of goods that are imported and exported through U.S. ports each year, 98 percent travel on foreign-flag vessels operated by foreign mariners.

The erosion of our ability to build and operate ocean-going vessels at competitive rates is also a threat to our industrial base. Good manufacturing jobs in shipyards and shipbuilding supplier companies have been outsourced oversees at alarming rates, and with them the invaluable technical skill and shipyard infrastructure that once kept costs down for both commercial and naval shipbuilding.

Inertia and bad public policy precipitated this decline, but Congress can turn the ship around by passing the Energizing American Shipbuilding Act.

Contact Congress and tell them to move on the Energizing American Shipbuilding Act

Contact Congress today and tell them to move on H.R. 1240, the Energizing American Maritime Act. Unless Congress takes action, ALL exported American crude oil and LNG traveling by ship will go on foreign-built and foreign-flag vessels operated by foreign crews, outsourcing ALL of the associated jobs and technical skills to foreign competitors. This bill would expand our U.S.-flag fleet, create over 2,000 new mariner jobs, and create thousands of additional jobs in shipyards and throughout the shipbuilding supply chain. I hope we can count on your support.

The Act Will Support Good Middle Class Jobs

Tens of thousands of American mariner and manufacturing jobs aboard vessels, in shipyards, and throughout the U.S. supply chain depend on the strength of the maritime industry. There are currently 117 active shipyards in the U.S. spread across 26 states, and another 200 shipyards engaged in repairs or capable of building ships. In 2011, the U.S. private shipbuilding and repair industry directly provided 107,240 jobs, $7.9 billion in labor income, and $9.8 billion in gross domestic product to the national economy. Including direct, indirect, and induced impacts, on a nationwide basis, total economic activity associated with the industry reached 402,010 jobs across all 50 states, $23.9 billion of labor income, and $36 billion in GDP in 2011. Each job in the private shipbuilding and repair industry supports another 2.7 jobs nationally, including increased revenue for small – businesses serving maritime workers and their families. Each dollar of labor income in the shipyard sector leads to another $2.03 in labor income in other parts of the economy.

The Energizing American Shipbuilding Act would:

  • Immediately launch an LNG shipbuilding program in the U.S., ramping up over time so that by 2040, 15% of exported American LNG travels on U.S.-built and –flagged vessels;
  • Immediately launch a crude oil shipbuilding program in the U.S., ramping up over time so that by 2032, 10% of exported crude oil travels on U.S.-built and –flagged vessels;
  • Require that a significant portion of the iron, steel, and manufactured components be U.S.-sourced and U.S.-constructed, good U.S. manufacturing jobs in addition to mariner jobs;
  • Require that exporters immediately create training opportunities for American mariners aboard export vessels so they can earn the credentialing required to assume these jobs.
Union Members Host Pro-Jones Act Demonstration

Union Members Host Pro-Jones Act Demonstration

April 17, 2018
Contact: Jennifer Blatus, 914-755-1954 // Jennifer@TheAdvanceGroup.com
Union Members Host Pro-Jones Act Demonstration
Fight for American Jobs and National Security via The Jones Act
Washington D.C. – Today, Jimmy Hart, President of The Metal Trades Department, AFL-CIO , Dan Duncan, Secretary-Treasurer of The Maritime Trades Department, AFL-CIO , and their members joined together to call on members of Congress to renew their support of The Jones Act.
With the Capital building setting the stage, members of both organizations pointed to the benefits of the language included in the Merchant Marine Act of 1920. The Jones Act regulates maritime commerce in the United States by requiring goods shipped between U.S. ports to be transported on ships that are built, owned, flagged, and operated by U.S. citizens or permanent residents. The law contributes nearly $100 billion annually to the national economy.

Caption: Jimmy Hart, President of The Metal Trades Department, AFL-CIO, calls on member of Congress to renew their support of The Jones Act.

Union members in attendance shared the same bottom line: The Jones Act is necessary to protect 500,000 good-paying American jobs and the country’s national security.
“There has been a wave of misinformation told about The Jones Act. The elimination of this important law would be detrimental to the American economy and the safety of its residents. Keeping shipyards busy is vital to protecting the highly skilled labor jobs held by metal trades workers and encourages investments in the infrastructure needed to build and maintain military vessels used for national defense. We cannot fail these working families who depend on us to make sure their quality of life remains intact,”saidJimmy Hart, President of The Metal Trades Department.
“Our industry and our members will never stop promoting the truth: The Jones Act keeps our country strong by supporting good paying jobs on both land and sea. The Act is an essential component of protecting our nation’s national security. Flawed accusations have been used as a foundation to call for the weakening or elimination of the law. There is ample supply of Jones Act qualified vessels to reach every U.S. port. This is a critical maritime law that promotes industrial investment and skilled training that helps to support our national economy and defense,” saidDan W. Duncan, Secretary-Treasurer of The Maritime Trades Department.

Caption: Union members stand together to support the same bottom line: The Jones Act Protects 500,00 American Jobs and our National Defense.

“My sector commands American built, owned, operated, and crewed dredging vessels. My dredging companies spend billions of dollars in the United States recapitalizing their fleets in U.S. shipyards and purchasing U.S. equipment. And they employ and provide benefits for thousands of hard working American families,” said William P. Doyle, CEO & Executive Director of the Dredging Contractors of America. “Dredging companies, shipbuilders and their mariners are true patriots.”
The Metal Trades Department, AFL-CIO was founded in June 1908 and has a membership of 5 million in 14 AFL-CIO unions.
The Maritime Trades Department was created in 1946 and is composed of 22 International affiliated unions.
Support the Jones Act

Support the Jones Act

The Jones Act is the fundamental law of the American maritime industry.  This new national grassroots group was established to mobilize Jones Act supporters across the country to contact Members of Congress and others against attacks on this important law.  Please consider sending a message to your representatives saying that you support the Jones Act. 

Venerable Jones Act Provides An Important Barrier To Terrorist Infiltration Of The Homeland

Lexington Institute
March 24, 2016

The debate of enhancing U.S. border security has focused almost exclusively on illegal movement of people and drugs into the southern United States from Mexico. Yet, the southern border is actually the smallest at 1,989 miles. The U.S. border with Canada is almost three times longer at 5,525 miles.

All of this country’s land borders are dwarfed by the 95,000 miles of national shoreline. This includes the Pacific, Atlantic and Gulf coasts as well as the Great Lakes separating the United States from Canada. Along this shoreline are many of America’s greatest cities: Los Angeles, San Francisco, Portland, Seattle, Chicago, Boston, New York, Philadelphia, Charleston, Savannah, Miami and Tampa. Virtually all of these are associated with ports through which pass millions of cargo containers and hundreds of thousands of passengers.

Moreover, the United States is a nation of rivers. A ship entering the homeland through a coastal port such as New Orleans will have access to the deep interior. The inland waterways of the United States encompass over 25,000 miles of navigable waters, including the Intracoastal Waterway, a 3,000-mile waterway along the Atlantic and Gulf Coasts. This liquid highway touches most of America’s major eastern cities including Washington DC, Philadelphia, Baltimore, Chicago, New Orleans and Mobile. Inland and intracoastal waterways directly serve 38 states from the nation’s heartland to the Atlantic seaboard, Gulf Coast and Pacific Northwest.

A significant portion of the movement of ships in U.S. waters is governed by the Merchant Marine Act of 1920, also known as the Jones Act. Only vessels conforming to the provisions of the Jones Act are permitted to carry passengers or cargo between two U.S. ports, a process also termed “cabotage.” These vessels must be built in the United States, owned by U.S. citizens, and operated under the laws of the United States. In addition, all officers and 75 percent of the crews of vessels engaged in cabotage must be U.S. citizens, with the remainder being citizens or lawfully admitted aliens.

The Jones Act was meant to pursue a number of national objectives. The most obvious was to support a robust U.S. shipbuilding industry and merchant marine.  In addition, Jones Act ships provided an important logistics support capability for the U.S. Navy.

A less well-appreciated but ever more important service provided by the Jones Act is in the area of homeland security. Since 2011, the Departments of Defense and Homeland Security along with domestic law enforcement agencies at both the state and federal levels are expending enormous amounts of manpower and resources to secure the nation’s ports and waterways. Foreign owned and operated ships routinely enter U.S. ports. But their movements and those of their crews are subject to a variety of controls and restrictions. For example, without valid passports, foreign sailors are restricted to their ships and the immediate port area.

It is particularly important that those vessels and crews which routinely travel between U.S. ports and especially the inland waterways through America’s heartland pose no threat to the homeland. It is for this reason that the higher standards with respect to ownership and manning requirements for Jones Act ships are so significant.

The task of securing U.S. seaports and foreign cargoes is daunting by itself. It makes no sense to add to the burden facing domestic security agencies by allowing foreign-owned ships operated by foreign crews to move freely throughout America’s inland lakes, rivers and waterways. The requirement that all the officers and fully 75 percent of the crews of vessels engaged in cabotage be U.S. citizens goes a long way to reducing the risk that terrorists could get onboard or execute an attack on a U.S. target. In effect, there is a system of self-policing that reduces the requirement for law enforcement and homeland security organizations to expend time and effort to ensure that these vessels and crews are safe to traverse U.S. waters. Were the Jones Act not in existence, the Department of Homeland Security would be confronted by the difficult and very costly requirement of monitoring, regulating and overseeing foreign-controlled, foreign crewed vessels in coastal and internal U.S. waters.

– See more at: http://lexingtoninstitute.org/venerable-jones-act-provides-important-barrier-terrorist-infiltration-homeland/#sthash.cRuiHA94.dpuf

Coast Guard chief: Repealing Jones Act jeopardizes U.S. fleet

1/15/15 12:17 PM EST
The commandant of the Coast Guard waded into the congressional fight over the Jones Act on Thursday, arguing that repealing it would jeopardize the U.S. fleet of trade vessels.

“That for me is a real consequence, if we have foreign flagged vessels doing coastalized trade, what are the safety standards, what are the maritime pollution … standards, how are they in compliance with the same standards that we apply to our U.S. fleet?” Adm. Paul Zukunft said at the Surface Navy Association’s National Symposium in Crystal City, Va.

“I think, at the end of the day, it will put our entire U.S. fleet in jeopardy, where our fleet of roughly 80-plus international U.S.-flagged vessels will rapidly go to zero,” he said. “And then in a time of crisis, who are we going to charter to carry out our logistics? … Very difficult if we don’t have a U.S. flagged ship.”

Sen. John McCain (R-Ariz.) is seeking to attach an amendment to the Senate’s Keystone XL pipeline legislation that would repeal the Merchant Marine Act of 1920, known as the Jones Act, which requires that goods shipped between U.S. ports be carried by vessels built in the country and owned and operated by Americans.

The new Senate Armed Services chairman argued the policy is “antiquated,” and raises costs for U.S. consumers by placing unnecessary restrictions on trade vessels.

Zukunft didn’t hesitate to list what he viewed as negative consequences of repealing the policy, but he said he didn’t want to get in the middle of the congressional fight.

“We deal with the consequences of how these policies play out, and I’ve found it very prudent to just deal with the consequence and not find myself the salami between those two slices of bread on these policy decisions,” he said.

There are a number of stakeholders in the Jones Act battle, but first and foremost is the U.S. shipbuilding industry, Zukunft said.

Shipbuilding advocates are fighting back against McCain’s push, including the Navy League, which argued that repealing the Jones Act would lead to a reduction in the number of ships built in U.S. shipyards. The Navy League also said repealing the law would lead to increased costs for Navy and Coast Guard vessels, which are built in the United States where the trade protections mean shipyards have lower overhead costs.

There are now about 15 tanker ships under construction that will be U.S. flagged ships, increasing the fleet size by more than 20 percent, he said. And much of that increase is due to demand for U.S. export ships, which would decrease if the Jones Act is repealed, he said.