AWSC: Legislation And Regulation In The Shipyard Industry
Herman J. Molzahn Vice President, Operations The American Waterways Shipyard Conference (AWSC) is the national trade association for the small and medium-sized commercial shipbuilding industry. These yards build and repair the barges, tugboats, and towboats for the fuel-efficient domestic water transportation industry, as well as the supply boats, crewboats and other specialized vessels for the offshore service industry and a wide variety of fishing vessels.
The AWSC has just completed its annual shipyard survey which is designed to develop an accurate profile of the industry which then can be used to identify industry trends for use in the legislative and regulatory areas and which are also useful to the industry.
The 1983 survey indicates that the number of second-tier shipyards has dropped from slightly over 300 to about 250 establishments.
This is not surprising when construction statistics are examined (see Table I).
Of major importance to the shipyard industry is the Jones Act— the singular law responsible for the creation of the inland and coastal barge and towing industry and the offshore service industry.
This nation has long benefitted from these industries which provide low cost water transportation and an offshore service industry which assures our energy independence.
The Jones Act gave rise to a shipbuilding industry which, in our free enterprise system, is efficient, cost-effective, and technologically advanced. In the peak years it has given direct employment to 50,000 people and because of the ripple effect on steel producers, equipment suppliers and various other service industries, it has provided additional employment opportunities for 175,000 people. Every legislative or regulatory attempt to admit foreign built vessels in contravention to the Jones Act, does nothing but weaken the Act's principles and eventually could cause its demise.
The AWSC and its member companies are supportive and dependent on the integrity of the Act, and will continue to vigorously defend it.
On another issue, reform of the Longshoremen's Act may become a reality in 1984. Both the Senate and the House have passed versions of the Longshore Reform Bill, and the differences must now go to Conference Committee. House and Senate staffers are diligently trying to arrive at reasonable compromises.
There are, however, many areas where the bills agree and which go to the heart of the economic problems caused by the 1972 amendments to the Act. Areas of agreement include: a) 5% cap on the annual benefit escalator; b) Repeal of the unrelated death benefit provision; c) A cap on death benefits at 200% of the national average weekly wage conforming it to disability benefits; d) Codification of the Supreme Court's Hillyer decision, precluding fringe benefits from wages in calculating an employee's average weekly wage; e) Imposes an offset for any other worker's compensation or Jones Act benefits received; f) Debarment of medical providers and claim representatives for fraud, raises the penalty for misrepresentation from a misdemeanor to a felony, requires semi-annual reports of outside earnings, and authorizes for filing a fradulent claim; g) Preventing deputy commissioners from speculating on future losses of wage earning capacity; h) Expediting settlements allowing automatic approval of settlement agreements within 30 days where the employee is represented by counsel; i) Prohibiting employees in shipyards from suing their employers in court on some dual capacity theory; j) Excluding clerical, secretarial, data processing and security personnel from the Acts' coverage.
The two most important differences between the House and Senate bills involve jurisdiction and occupational disease. The AWSC has long fought for excluding small shipyards from Longshore Act coverage.
The second tier shipyards are not able to use their facilities for non-maritime construction because the high rates of the Longshore Act make them non-competitive with other steel fabricators.
Highway and bridge construction have increased over 70% in the last year, since the 59c fuel tax came into effect. However small shipyards have not been able to participate in that business or in many other non-maritime steel fabrication jobs because of the Act.
In addition, many shipyards could also become steel service centers if they were not burdened by the Act. Progress is being made prior to conference to find a way to exclude the shops and building areas in shipyards from maritime coverage so that the facilities can be more fully utilized. In addition, progress is also being made on resolving the occupational disease issues. With the difficult issues out of the way, it is hoped that a bill will be passed before Congress adjourns in October 1984.
Longshore Reform will provide shipyards with greater cost control and more flexibility to use their facilities.
Progress is also being made on the development of a vertical standard for the shipbuilding industry.
Two years ago Phase I of the project was completed when OSHA consolidated the three shipyards standards—ship building, shiprepairing, and shipbreaking— into one single standard. The second phase is nearly complete where the appropriate general industry standards will be combined with the shipyard standards thereby producing a vertical standard which contains all the regulations that a shipyard must comply with. Finally, the third and most difficult phase is the revision of the vertical standard so that all regulations will be appropriate for the shipyard environment. This will be undertaken on a section-by-section basis under a review schedule established by OSHA.
In 1980, the AWSC was the recipient of an OSHA New Directions grant. In 1981, the AWSC published the new Employees Safety Training Program, a slide cassette presentation. The funds raised through the sale of the Safety Training Program have enabled the AWSC to become financially self-sufficient to produce additional programs. The AWSC Shipyard Safety Committee will soon embark on the development of a Supervisors Safety Training Program. These programs are wise investments that anticipate recovery in the shipyard industry, and that will be in place once the recovery occurs.
The American Waterways Operators, Inc., and the AWSC, represent a rare alliance for an industry trade association because it combines both the manufacturers and the operators of the equipment.
This coalition reflects the true nature of the maritime industry which is an integrated system composed of several distinct and essential parts: vessel operators, ports and terminals and shipyards.
Other stories from August 1984 issue
- Captain Osborne Joins Port of San Francisco page: 6
- ASNE Northern New England Tours BIW Repair Facility page: 7
- Dockmaster's Training Seminar To Be Held Dec. 11-14, 1984 In San Diego, Calif. page: 7
- NMEA Names Gutman President, And Carney Executive Director page: 7
- ASMAR Delivers Dona Eugenia page: 7
- Lockheed Launches U.S. Navy Dock Landing Ship 'Germantown' Ahead Of Schedule page: 8
- Nav-Com Introduces New Complete Shipboard Communications Package page: 8
- AWO Elects Creelman Chairman Of The Board page: 9
- Eastern Marine Delivers Passenger Launch P.C.C. Colibri To Panama Canal Commission page: 10
- Two Smit Tak Tugs Tow Concrete Island Drilling System From Japan To Alaska's North Coast page: 10
- New Airfoil Design Makes Wind-Powered Ships Viable For Commercial Shipping page: 10
- Boghammar Marine Delivers Light-Alloy Pilot Boat page: 10
- New Members Elected To Norshipco Board page: 11
- Organizational Changes Are Announced By Newport News Shipbuilding page: 11
- First Of Four Lauritzen Reefers Launched At Hyundai's Ulsan Yard —Two Bulkers Delivered To Apex page: 12
- New Dry Dock Delivered To Southwest Marine page: 12
- North American Marine Jet Purchases Jacuzzi Marine Jet Line page: 12
- Crude Oil Tanker Exxon Baytown Christened At Avondale Shipyards page: 13
- First of Three Fast Sealift Ships Delivered page: 14
- RFD-Elliot Offers Catalogs Describing Elliot Product Line page: 14
- Edwards Will Succeed Stonebreaker As President Of Halter Marine page: 14
- Mirrlees Offers Brochure On Its K&KV Major Mk3 Diesel Engine Range page: 14
- ASMAR Of Chile In Joint Venture To Build $13-Million Shipyard page: 15
- SEACOR Wins Contracts Worth $8.4 Million page: 15
- Mississippi Marine Proves Its Strength On Mammoth Repair Job page: 16
- Verolme Botlek Awarded Contract For Rig Modification page: 16
- Flexaust Announces A Major Improvement In Its Product Line page: 16
- Seaworthy And Bethlehem Steel Offer An Innovative 1,500-TEU Class Convertible Container Carrier page: 16
- A New Fireboat For Seattle page: 17
- Blount Delivers 425-Passenger Dinner Cruise Vessel 'Riveranda' page: 17
- Literature Available On Clemlite Heavy Duty Abrasive Blast Nozzle page: 17
- Tyne Shiprepair Wins Contract To Rebuild The Sir Tristram page: 17
- Ingram Barge Company Names New President page: 17
- Fagerstrom New President Of Alfa-Laval, Inc. (U.S.) page: 18
- Orange Shipbuilding Signs Contract For Push Boat page: 18
- McDermott Announces Transfer Of Two Senior Managers page: 18
- AWO — A Legislative Report page: 20
- NAVY WORK IN PRIVATE U.S. YARDS page: 20
- Tipping Over The Pork Barrel page: 25
- AWO Regulatory Activity: A Review Of Problems — And Solutions — Currently Afloat page: 27
- AWSC: Legislation And Regulation In The Shipyard Industry page: 29
- Farrell Comments On Rail-Barge Merger page: 30
- it UNITED WE STAND 99 - A Call To Membership In The National Ocean Industries Association page: 31
- MonArk Boat Announces Promotions And Changes page: 32
- IMODCO Gets Contracts From Indonesia, India page: 32
- Dubai Drydocks Reports Successful First Year Of Operation page: 33
- Willem Pot B.V. Offers 44-Page Marine Equipment Stocklist And Catalog page: 33
- McDermott Delivers First Jumboized Crowley Barge — Gets Contract To "Stretch" Three Additional Units page: 34
- Todd Seattle A w a r d ed $500,000 Phase I Contract For LCAC Program page: 35
- Lykes A w a r d s $ 1 5 0 - M i l l i on C o n t r a c t To Build Four C o n t a i n e r s h i p s In Japan page: 35
- Hitachi Zosen Receives Jackup Drilling Rig Order From India page: 36
- 14 MarineSafety Training Courses Detailed In 12 Page Brochure page: 36
- ASTECH Offers Literature On Lightweight Steel Honeycomb Structures page: 36
- Lubritech Fuel Additive Lowers Maintenance Costs page: 37
- The Second Annual International Inland Waterways Conference & Trade Show page: 38
- OUTSTANDING WARSHIP DESIGNS page: 38
- U.S. NAVY SHIPBUILDING PROGRAM page: 44
- Literature Available On New Mechanical Pump Seals From Drew page: 46
- Midland Enterprises' President Geary Speaks Against CSX/ACBL Merger page: 46
- Krupp Atlas Has Major Orders For Atlas Polarfix — Literature Available page: 48
- New Brochure Available From American Standard Heat Exchanger Repair page: 48
- Fram Offers 20-Page Color Brochure On Its CPS-3 Marine Separator page: 48
- Aqua-Dyne Offers Brochure On Jet-Blasting Equipment page: 48
- Ferrous Announces FMS, System For Administering Catalyst Into Fuel Oil — Literature Available page: 49
- Philip Burguieres Named National Ocean Industries Association Chairman page: 49
- UNIPAR Offers Literature On Diesel Power Packs, Parts And Components page: 49
- Dillingham Delivers Massive Bridge Construction Materials To Alaska By Tandem Barge Tow page: 51
- M a c G r e g o r - N a v i re President Hanson Dies Suddenly page: 51
- Navidyne Study Shows New Satcom Antennas Save Shipowners Money page: 51
- Ferrous Offers Literature On Catalyst Proportioning Pump And Depulsing Unit page: 51
- St. Augustine Shipbuilding Vessel For Caribbean Service Designed By DeJong & Lebet page: 52
- CIME Technical Seminar Hosted By Vancouver, B.C. Branch page: 52
- NMEA Annual Meeting Set For Oct. 14-16 In Boston page: 52
- Bowditch Introduces New Navigation And Piloting Aid page: 52
- Danos & Curole Christen Jackup Barge Alyce Danos page: 52
- AVONDALE DELIVERS FAST SEALIFT SHIP USNS ANTARES TO MSC page: 53
- Dahl To Market New Improved Racor Replacement Elements page: 53
- Baatservice Building Big Catamaran Survey Vessel page: 53
- TEP 3000 Turbocharger Injector Pump Extends Turbocharger Life — Literature Available page: 54
- McDermott-Built Barge Uses Markey Machinery Windlass And Capstans page: 54
- PRC Reports On Navy Use Of PRORECO III Deck System page: 54
- New IMA Report Available Analyzing U.S. Navy Overhaul Market page: 55
- Renk Opens New Plant In South Carolina — Literature Available page: 55
- Coflexip Flexible Pipe Riser Used In Test Program By Navy page: 57
- Meyer Werft Delivers Gas Carrier And Gets Contract For Cruise Liner page: 58
- NABRICO Constructing 45 Barges For N.Y. City Department of Sanitation page: 61
- Rauma-Repola Delivers 225-Foot Salvage Tug To Soviet Union page: 62