Marine Engineers’ Beneficial
Association (AFL-CIO)
444 N. Capitol Street, N.W., Suite 800
Washington, DC 20001-1570
Hot Off the Press
TEL: (202) 257-2825
To: All Ports
From: Marco Cannistraro
FAX: (202) 638-5369
Total Pages Including Cover: 5
Date: 10/9/14
Telex Times
#41
E-Mail: marco@MEBAunion.org
w
MARINE ENGINEERS’ BENEFICIAL ASSOCIATION (AFL-CIO)
“On Watch in Peace and War Since 1875”
M.E.B.A. TELEX TIMES
The Official Union Newsletter
NUMBER 41
OCTOBER 9, 2014
In
this issue…Halls closed for Columbus Day…Mediation Boosts POID
Workers…M.E.B.A./MM&P Hawaii Ferry Conference Success…New Rep. in
Charleston…Preliminary Lump Sum Factors…Govt. Fleet Assistance…Liberty Suit Update…
HALLS & OFFICES SHUTTERED MONDAY FOR COLUMBUS DAY
M.E.B.A. halls and offices will be closed on Monday in observance of Columbus Day and the
original Admiral of the Ocean Seas - Christopher Columbus. As noted in a past Telex Times, it
was in August of 1492 that Cristoforo Colombo stepped aboard the SANTA MARIA with 90
men and sailed west accompanied by the NIÑA and the PINTA. Funded by Spain’s King
Ferdinand and Queen Isabella, Columbus was seeking a new route to Asia and India. He was
mercilessly mocked by naysayers who believed his ship would be swallowed by monsters or that
it would fall off the edge of the world. After two months of sailing while trying to keep a
disgruntled crew in check, Columbus was able to stave off a potential mutiny when the crew
finally spotted land on October 11, 1492. He made stops on several islands including the
Bahamas which he claimed for Spain. He also landed in Cuba and Hispaniola before the SANTA
MARIA was wrecked on Christmas Eve of that year. He made three more voyages through 1502
with varying degrees of success. Columbus didn’t realize he never actually set foot in the islands
near India and believed his version of reality until his dying day in 1506. Columbus has been
described as a visionary who opened up the New World and conversely as a greedy imperialist
who signaled the beginning of the end for the indigenous peoples of the Americas. Happy
Columbus Day!
BACK PAY, WAGE INCREASES SECURED
FOR POID UNIT FOLLOWING MEDIATION
M.E.B.A.’s follow-through on behalf of our shoreside members working for American President
Lines has resulted in gains for our hardworking POID unit. As detailed in a recent Telex Times,
the Union went to arbitration with APL seeking remuneration after APL closed up its Denver
Division and shifted those operations to Nashville at drastically reduced wages. The move to a
right-to-work state was accompanied with a feeble APL relocation offer to longtime Denver
POID workers. M.E.B.A. POID Representative April Fleischer and Oakland Representative
Dave Nolan worked tirelessly to prove that the APL-imposed wages were grossly wrong and that
the Nashville members deserved fair compensation.
An Arbitration went well and led to mediation which took place on September 30th and October
1st. With further assistance from M.E.B.A. Executive V.P. Adam Vokac as well as Counsel
George Davies and Richard Rouco, the Union was successful in obtaining almost a 30% increase
in wages in addition to 50% back pay for the Nashville members. In addition, the Union secured
a $5,000 relocation package for the members who moved from Denver to Nashville.
M.E.B.A. continued to argue that the Nashville relocation offer letters issued to the Denver
employees in January 2014 violated the collective bargaining agreement as wages had not yet
been agreed upon. Each of the 131 impacted members still in employment in Denver at the time
-1-
of closure will receive an additional $1000 as well as the supplemental unemployment benefit
(severance) and additional insurance coverage provided for in the existing contract. The CBA
remains status quo and will be renegotiated in May of 2016 when it is due to expire. To date,
approximately 75% of the new Nashville employees have decided to join the Union so far.
The M.E.B.A. POID members benefited from their Union representation and the advantages that
come with it. Our newly hired members have already experienced higher wages, better health
insurance benefits, and job security. Our negotiated contract provides our members with security
and certainty and provides a solid ground for employee rights in the workplace. Holidays,
vacation, and sick time are provided per the contract to all our members. The M.E.B.A. POID
bargaining unit, like other unions, has for years negotiated these benefits. It’s tough to convince
those in a right to work state that the solidarity of employees belonging to a union make higher
wages, have better medical insurance, pensions, and grievance procedures which allow them to
speak freely about their jobs. The M.E.B.A. POID group in Nashville is quickly learning there is
strength in numbers as the unit continues to grow and membership is on the rise.
M.E.B.A./MM&P CONFERENCE MAKES HEADWAY ON HAWAII INTER-ISLAND
FERRY DISCUSSION
Hundreds flocked to a Hawaiian Ferry conference this week organized jointly by the M.E.B.A.
and MM&P as efforts to outfit the Hawaiian Islands with a reliable ferry system are being
pursued. The conference took place on Monday at Pier 19 in Honolulu Harbor, the former
terminal of the old problem-plagued Hawaii Superferry – a project that resulted in a glorious
failure six years ago despite great initial hope. Though that initiative left investors in the lurch,
the Superferry fiasco revealed a wealth of “lessons learned” that will aid the establishment of a
realistic inter-island ferry system. M.E.B.A. Oakland Patrolman Christian Yuhas noted that the
Superferry’s 350-foot catamaran would make passengers seasick especially during the winter
months when the seas are rough. He advocated for bigger vessels that could carry plenty of
people and cargo with a smoother ride. At the event, Christian made note that Hawaii is the only
state in the union where the counties are surrounded by water, yet there is no ferry system. A
recent newspaper poll revealed that 87% of Hawaii voters believe the State needs an inter-island
ferry.
Several candidates for office in Hawaii have been vocal in support of such a service and a few of
them attended and spoke at Monday’s conference. The event received great press coverage as
well. This terrific event was a great first step to get the State moving toward the ferry system that
Hawaii needs and deserves.
HARRY TOLER TO SUCCEED M.E.B.A. VETERAN
JACK McGINNIS IN CHARLESTON
After holding down the fort at our Charleston Union hall for the last 20 years, M.E.B.A. stalwart
Jack McGinnis has handed over the keys to a new Representative. Jack joined the Union in 1968
and shipped out for well over 20 years before helping out the M.E.B.A. on the shoreside level.
He took over from Charleston Representative Ray Hill in 1993 and has been steadfast in his
support of the membership over the years. Jack decided it was time to enjoy the fruits of his
labors and he needs more free time to live the good life. Thank you Jack. 46 years after joining
the M.E.B.A., we wish you fair winds and following seas!
In his stead, retired member Harry Toler has come onboard to keep things humming at the hall.
Harry toiled in ship engine rooms for 18 years on a variety of vessels before hanging up his
-2-
boiler suit three years ago. He couldn’t stay away though, and he’s already hard at work in
Charleston. Come on by and he’ll hook you up with a shipping job. Welcome aboard!
M.E.B.A. PENSION TRUST – PRELIMINARY 2015 LUMP SUM FACTORS
The Plan Actuary has calculated 2015 PRELIMINARY lump sum factors using the segmented
interest rates corresponding to the month of August 2014 and the applicable mortality table. The
segmented interest rates for August 2014 are 1.24%, 3.86% and 4.96%.
The lump sum factors determined using the month of August currently result in the most
favorable lump sums for Plan Participants planning retirement during 2015. Unless the
segmented interest rates for September, October, November or December produce more
favorable lump sum factors, the Pension Plan’s 2015 lump sum factors will be based on those
corresponding to August 2014. These factors are applicable to Lump Sums calculated on benefit
accruals through December 31, 2011.
The following table shows the final lump sum factors currently in use for 2014 and the
preliminary lump sum factors for 2015 based on the August 2014 segmented interest rates.
*Note: Final Section 415 Annuity Limits for 2015 have not yet been published.
Age
Nearest
Retirement
75
74
73
72
71
70
69
68
67
66
65
64
63
62
61
60
59
58
57
56
55
54
53
52
51
50
2014
Final
Lump Sum
Factor
112.63
117.10
121.51
125.84
130.09
134.24
138.27
142.20
146.03
149.76
153.44
157.03
160.54
163.98
167.33
170.59
173.76
176.81
179.76
182.61
185.37
188.04
190.60
193.05
195.38
197.60
2015
Preliminary
Lump Sum
Factor
116.50
121.32
126.08
130.77
135.39
139.91
144.30
148.61
152.81
156.91
160.97
164.95
168.83
172.66
176.39
180.05
183.60
187.03
190.37
193.60
196.74
199.79
202.72
205.53
208.23
210.81
-3-
MEMBERS TO ASSIST GOVERNMENT FLEET EFFORTS
Two Norfolk-area members will be adding their expertise in assisting Representative Tracy
Burke in support of our Government fleet. Active members Jim Sullivan and Joe Muchulsky will
be called upon, on a rotational basis, to maximize our efforts on behalf of members sailing for
the Military Sealift Command, Army Corps of Engineers and the National Oceanographic and
Atmospheric Administration (NOAA). Both are active Chief Engineers with extensive sailing
experience on MSC vessels. As their time permits, they will be relied upon to help ease the
demanding workload in the Government fleet arena.
M.E.B.A. LAWSUIT AGAINST LIBERTY
On September 30, 2014, the U.S. District Court for the District of Columbia issued a decision
compelling Liberty Maritime Corp. to arbitrate grievances filed by the Union after Liberty
walked away from the M.E.B.A. in September of 2011 and agreed to a contract with the AMO to
replace M.E.B.A. members on its bulker vessels.
As has been previously reported, Liberty signed an agreement with AMO for its bulker ships, a
deal which had been worked out with the AMO before the end of the M.E.B.A.’s contract with
Liberty. The M.E.B.A. grieved Liberty’s actions and demanded arbitration to settle the dispute;
Liberty refused to arbitrate.
The M.E.B.A. then filed a lawsuit in federal court in Washington, D.C. to compel arbitration of
its grievances. The Court has now ruled that the M.E.B.A.’s grievances are subject to arbitration
and has ordered that Liberty submit the grievances to arbitration for final and binding decision.
The Union intends to proceed with the arbitration as quickly as possible.
REGULAR MONTHLY MEETINGS
Monday, November 3 – Boston@1200; Seattle@1300;
Tuesday, November 4 – Calhoon M.E.B.A. Engineering School@1430; Charleston@1400;
Houston@1315; San Francisco (Oakland)@1230;
Wednesday, November 5 – Jacksonville@1300; New Orleans@1315;
Thursday, November 6 – L.A. (Wilmington)@1230; New York (New Jersey)@1300;
Norfolk@1430; Tampa@1300;
Friday, November 7 – Honolulu@1100.
--------FINISHED WITH ENGINES--------
-4-