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The Honolulu Advertiser
Posted on: Monday, July 9, 2007

Public comment period on Jones Act rule changes affecting 3 Hawaii cruise ships expires on July 23

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By Dennis Camire
Advertiser Washington Bureau

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http://dms.dot.gov, Department of Transportation site with access to the new Coast Guard rule change. To find it, click on "Simple Search" and enter 27761 as the document number. Users may also add a comment by clicking on "Comment/Submissions."

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WASHINGTON — Time is running out to comment on a recent rule change that allows people who are not U.S. citizens or permanent U.S. residents to work as crew members on Norwegian Cruise Line's three U.S.-flagged cruise ships in Hawai'i.

Sen. Daniel K. Inouye and Rep. Neil Abercrombie, both Hawai'i Democrats, were key backers in getting the rule change, which the company said will help address crew shortages and turnover.

But opponents say the change weakens the federal law, called the Jones Act, which preserves jobs on U.S.-flagged vessels for American crews. Cruise ships that sail from one U.S. port directly to another U.S. port must be U.S.-flagged and built under the Jones Act.

Miami-based NCL Corp. has been operating in Hawai'i under an exemption to federal law, allowing up to one-quarter of its crews to be permanent U.S. residents, or green card holders, and the remainder U.S. citizens.

The change, which only affects Norwegian Cruise Line's U.S.-flagged ships, allows one-quarter of the crew to hold other types of U.S. visas. They could only work in the ship's hotel departments and would not have navigation, technical, safety or security positions.

Crew members without green cards also must undergo Coast Guard and State Department background checks and can only work aboard U.S.-flagged vessels for up to three years.

The Coast Guard estimates it will authorize 600 to 800 non-U.S. resident crew members this year and 900 to 1,200 next year.

The rule went into effect April 24 with a 90-day comment period that closes July 23.

Coast Guard Lt. Derek D'Orazio said only two comments have been received.

Paul F. Beglane, a member of the International Organization of Masters, Mates and Pilots, wrote to the Coast Guard that the change is "another shamefully obvious attempt to use cheap labor of questionable origin to weaken" Jones Act protections.

"There is a more than ample supply of American citizens and currently-qualified resident aliens holding entry-level merchant mariner documents authorizing them to work in the steward's department aboard U.S.-flag merchant ships," he said.

But Timothy A. Brown, president of the International Organization of Masters, Mates and Pilots, said Beglane was commenting as a private individual and the union has no official comment.

"It doesn't affect us so we didn't get involved in this issue," he said.

Anthony Poplawski, president of the Marine Firemen's Union in San Francisco, said Norwegian Cruise Line's crew problems should not be used "as an excuse to expand the documented mariner pool to include non-resident aliens." Instead, the Labor Department should investigate NCL's high turnover rate among mariners working as hospitality staff, Poplawski said.

Susan Robison, spokeswoman for NCL in Miami, said Friday the cruise line had turnover as high as 200 percent when it started up four years ago. "But now we're seeing it at about 100 percent," she said.

Robison said the new crew members under the rule change are required to have worked on NCL's international cruise ships for at least a year. They also will be paid the same as the U.S. crew members and be covered by U.S. labor laws, Robison said.

The company doesn't expect to save any payroll cost from the change, but will reduce overall staffing-related costs, Robison said. "With less turnover, there will not be as high a cost for recruitment, training or process," she said.

Inouye and Abercrombie pushed for the change in the defense authorization bill Congress approved last year. Both lawmakers said they sought it because of NCL's problems with high crew turnover and the high cost of training replacements.

"It adds tens of millions of dollars a year to the tourist revenue and strengthens the business stability of the state," Abercrombie said. "Anything we have to do to ensure that continues to progress, we're going to do."

Mike Yuen, spokesman for Inouye, said Inouye sought the change after NCL, at the request of the Seafarers International Union and the Marine Engineers' Beneficial Association. "NCL was having problems recruiting U.S. citizens and this expands the pool of non-U.S. citizens who can serve on the cruise ships," Yuen said.

NCL has been losing money and cited its Hawai'i operation as a key reason. It plans to shift its largest Hawai'i-based ship, the 2,466-passenger Pride of Hawai'i, to Europe next year to help stem losses, which were $60.8 million for the first quarter of this year.

Reach Dennis Camire at dcamire@gns.gannett.com.