METAL TRADES

IN THE NEWS

MTD IN THE NEWS | August 15, 2022

FROM THE DESK OF METAL TRADES DEPARTMENT PRESIDENT JAMES HART

Upgrading, renewing, and expanding the Jones Act fleet is the next huge shipbuilding opportunity in the world today. 

It has been more than three decades since America held the number one position in worldwide tonnage production. In the intervening 30 plus years Germany, the Netherlands, Japan, Korea, and now China have ascended to the top of the worldwide shipbuilding industry, building large fleets of new marine assets for the global economy. Today foreign yards are sold out through 2027.

Now it is time for the United States’ shipyards to shift into high gear to repeat our unmatched WWII producing record of more than 5,000 marine assets in a little over three years. Today, we estimate that we will need over 10,000 new marine assets to fulfill our needs over the next ten years, including hundreds of multipurpose container and offshore wind feeders, cable layers, new barges, thousands of fishing vessels, a fleet of new high-powered tugs to handle the new fleet of VLCVs (Very Large Container Vessels) and the list goes on and on.

A few of the benefits of new modern marine assets:

• The ability to standardize vessels built in series, lowering construction costs
• New marine assets operate for less; new technology is simply more efficient
• Standardized vessels can be and are operated by interchangeable crews, just like airplanes
• New vessels are more fuel efficient and environmentally friendly than old technologies
• New marine assets have lower repair and maintenance costs as standard parts are available
• New vessels will comply with IMO and new environmental standards
•  Modern vessels are insurable
• New vessels can be financed at lower rates in today’s low interest environment
• New Jones Act assets are subject to ten-year depreciation schedules and are eligible for tax credits
• And the list goes on and on and on…………………

Meeting our nation’s present and future commercial maritime needs is a Herculean task. We can and we must succeed as renewing and expanding our Jones Act fleets are essential for our nation’s economic and national security future. However, history has taught us over and over again that with every every big idea there are huge opportunities and financial rewards for those willing to take the risk and challenge the status quo.

U.S. Supreme Court Strikes Down Workers’ Compensation Carve Out for Nuclear Workforce;

AG Ferguson Vows Workers will Remain Protected

The U.S. Supreme Court in June said the state of Washington could not in a 2018 law lower the bar for federal contractors who work at a decomissioned nuclear weapons plant to receive workers’ compensation benefits.

The decision by the court says the state could not single out the Hanford facility in the law because the federal government had not explicitly waived its typical immunity from discriminatory state laws with respect to workers’ compensation.

Washington Attorney General Bob Ferguson, who has been a champion for workers at Hanford, and was honored by the Metal Trades Department for his work in 2016, said the ruling will have little practical impact because of the recent amendments to the law.

“Hanford workers, and all others working with dangerous radioactive waste, remain protected,” Ferguson said.

MTD, Shipbuilding Partners Issue Whitepaper Calling for Policy Changes to Ease Supply Chain Distribution; Utilize American Green Marine Highway

Metal Trades Department, in collaboration with domestic and international entities recently produced a whitepaper outlining industry and policy changes that will help alleviate the debilitating stress endured by the current supply chain distribution system which will help eliminate congestion in our streets, and revitalizing our coastal and inland waterways and communities.

In the paper, the Metal Trades Department says “our stated goal is to build 200 Jones Act compliant small container (feeders) vessels economically for the American Green Marine Highway by 2030.”

It further calls for utilizing the American Green Marine Highway (AGMH) to transport containers, relieve gridlock, and erect offshore wind farms.

The Department believes its plan will create good-paying union jobs for all segments of the maritime and construction industry in the shipyards, terminals, and ports.

We were made aware recently that Eastern Gateway Community College (EGCC), the school where we have sent many of our Metal Trades union members and their family members since 2016, is being forced to suspend the Free College Program immediately. 

The Department of Education has made the determination that the program violates Title IV of the Higher Education Act of 1965, as amended, 20 U.S.C. 1070 et seq. (Title IV), which prohibits assessing charges to recipients eligible for Title IV financial assistance that are higher than those charges assessed to non-Title IV recipients and has notified EGCC to cease providing the benefit immediately.  We had no control over this decision and were disappointed to hear it.  EGCC disputes these charges, and you can read their response here: https://egcc.edu/press-release/.

We are working hard to get answers to all the questions raised by this decision. This decision not only affects our members but every other union that was offering this benefit.

Rest assured, all the unions engaged in this program are exploring every possible angle to find a way to continue some version of Free College for union members.

Puget Sound President Troy Andrews Retires

Puget Sound MTC President Troy Andrews with President Biden during a Shipyard visit

Troy Andrews has served on the Puget Sound Metal Trades Council in one capacity or another for more than a decade. Beginning in 2010 as a delegate, Andrews then became Trustee for the Council from 2015 to 2016 and Vice President from 2017 to 2020. In 2021, Andrews became president. And, on July 1, 2022, Andrews officially retired.

“Troy will be missed,” says Metal Trades Department President Jimmy Hart. “His hard work and

dedication to the members of Puget Sound Metal Trades Council has enriched the lives of so many. We wish him a long and happy retirement.”

A member of the Laborers’ International Union of North America (LIUNA) Local 252, Andrews began his career in 1980.

Since joining the union, Andrews has been active in Local 252 as a business manager and with the Pierce County Building Trades.

SMART Local 66 member Kal Rhode was elected president of the Council replacing Andrews. Steve Miller, IAMAW District Lodge 160, was elected as vice president.

Reminder: Metal Trades Department Annual Conference Registration is Open