An Open Invitation to All AMO Members,

It is time for a change.. a change for the future of AMO. National Executive Board Member at Large, Dave Weathers, and I recently completed an around-the-world trip to visit contracted vessels and to inform AMO members of recent developments. Following that particular trip, I traveled to New Orleans, Norfolk, and down the east coast from Charleston to Port Everglades. In the course of these travels and ship visits, many of you shared your growing concerns about the future of the AMO and the direction in which we are collectively heading as a Labor Organization. Many important issues were presented, but the one issue that seemed to be discussed the most, was the need for change to bring the AMO into the 21st century and to empower the membership to have the final say over the myriad of issues that are affecting you and your families. Having listened closely to the membership, and having been close to the existing AMO Administration as a National Executive Board Member for the past six years have afforded me the opportunity of gaining a unique insight of effectively achieving the desired and necessary changes that are required to insure our competitiveness and viability in the ever changing maritime industry. I invite each and every one of you to participate in helping me to help you and would ask you to consider and carefully contemplate these important issues. Having done so, I would then ask you to vote for the candidates of your choice in the upcoming election.

PROPOSED NEW CONSTRUCTION

After the December membership meeting at Headquarters in Dania Beach, Florida, the AMO Executive Board members in attendance were instructed to attend a meeting in the National Presidents office. Upon arriving in the incumbent National President's office for this meeting, I was surprised to discover a local architectural firm in Fort Lauderdale called Zelch and McMahon had modeled a 4.5 Million dollar rendering of a proposed new AMO Headquarters building that. Unbeknownst to the membership, the building plans already have been approved by the City of Dania in November of 2007. The 4.5 million dollar price tag only includes building and construction costs and makes no apparent allowances for furnishings, office equipment, or other items required for completion. The AMO has a net worth of 14 Million dollars, so I assume that we could afford to build a new Headquarters building should we require one; however, do we want to spend half your Union's net worth at this time for a new building with no proven need to do so at the expense of the membership without your prior approval? It was hinted that some of the money would come from the AMO Plans purchasing property from the Union. If the Plans can afford to purchase the trailer park across the street from the RTM Star Center for 4 million dollars and then spend additional funds to buy land from the Union, approximately $15 Million Dollars, then why are our benefits so low and our co-pays so high? How much revenue is currently realized annually on the rental property that the AMO Plans rent from the Union? Regardless of the amount, should we liquidate these assets by selling them, we would lose current income in so doing while simultaneously being saddled with the cost of maintaining a very expensive new building. What is the true assets of AMO, I continue to hear that it is around $14 to $15 Million but if the property that the Plans now rents from us is worth $15 million, then the total worth of the AMO is much greater than we have been led to believe. Does the rental income we receive from the AMO Plans, along with JEC contributions (joint employment contributions by contracted companies) and your membership dues, pay the day-to-day operating costs of our Union and its administration? Would our dues have to be increased in the future, to support and pay for this unnecessary expense? One advantage of being a telephone and Internet based operation is the freedom from the need to maintain this type of expenditure. Finally, regardless of anyone’s opinions on this issue and the necessity of a new Headquarters building, the membership should have the final say for any expenditure of this magnitude. To my knowledge, the majority of our members are not even aware that the current administration is proceeding in such an endeavor without their knowledge and approval. This is not the time to stand idly by and watch your Union's assets disappear for an expenditure that will do nothing to bring in more job opportunities for our membership.
The primary purpose of a Labor Organization such as the AMO is to collectively bargain to provide job opportunities and benefits to the members of the organization and their families while insuring that the members' rights are at all time respected and upheld in the process. Can we truly say that this is the case under the current administration's policies? Facing the prospect of losing a large number of jobs when the military ships are laid up, along with the resultant loss of medical benefits for those employees who due to the lost jobs are unable to meet the eligibility requirements, why would the current administration even consider investing in a new construction project rather than investing in developing new opportunities for our members who have always been our greatest asset and protecting their benefits? The AMO is now, and always will be, a group of dedicated professionals working in solidarity to achieve common goals, and not some new edifice with a sign declaring AMO on it, regardless of how much it costs or how fine it looks to passersby.




FASTSTREAM

The recent agreement with Faststream presents an interesting contradiction for AMO members. On the one hand, the idea of having AMO members in shore side positions to help us secure future work is a great concept, but if we send our members to shore side jobs before they retire, then we reduce our ability to supply crews for new employment at sea. On the other hand, the AMO should support members who wish to transition ashore in securing shore-side employment after retirement. I accompanied one Captain who was looking for work ashore after he had taken his pension buyout to the Faststream office in Fort Lauderdale. He was interested in working close to his home in the NJ area. Faststream informed him that they did have shore side employment opportunities. He was advised that there was a job opening in his area, and instructed to send in a resume for consideration, which he subsequently submitted. When I talked to him later, he told me that he had been offered a different job in the Houston area, and had received no help in finding the job he really needed near his home. Consider also that if he does find work with a new company through this new agreement with AMO, to the best of my understanding, that company would not be required to make contributions to his pension, since he would not be eligible under the in-service lump sum plan. Additionally, even if a member had elected a monthly pension, he would be unable, to his detriment, to accrue any additional pension benefits from this employment; however, if a member went to Faststream independently of AMO and obtained the position, he would be earning an additional pension benefit after being vested in his new employment. Although the agreement appears attractive on the surface, it is clear that the retired member would derive a greater overall benefit by dealing directly with the Faststream employment agency. The Union should fully inform the membership of the pros and cons regarding this type of agreement in order that the member can decide what is best for himself and his family. Our connection to Faststream is still very valuable to AMO, as they will support us in the International Arena.

UNION RESOURCES AND REALLOCATION OF ASSETS

In these economically troubled times, I would ask the membership to consider the liquidation of some Union real estate holdings such as the Brooklyn hall and the Hawaii holdings. Consideration should be given to selling some of the property to the AMO Plans so that they could expand within the Dania compound. Although this might represent a reduction in income from lease payments as discussed previously, it would allow for the reduction in AMO Plans expenditures, which would, in turn, translate into their ability to provide better and more comprehensive coverage's to the members. By investing the funds from these liquidated assets wisely and securely, the Union could earn sufficient profit to effectively offset and reduce day-to-day operating costs. So doing would benefit both members and contracted companies directly. For the members, the reduction in operating costs from the generated income would alleviate the likelihood that a dues increase might be required, with the real possibility of even allowing for a decrease in dues. For contracted companies, the generated income could help the AMO reduce the amount of required JEC contributions (joint employment contributions by contracted companies) thereby allowing for the opportunity to negotiate higher wage packages or otherwise to be able to make our product, that of providing professional labor, more attractive to prospective companies.

AMO PLANS TRUSTEE

It is important that the membership understand that the National President is the only AMO Union official on the AMO Plans Sub Committee that oversees all of the different Plans and makes all of the primary decisions regarding the AMO Plans. The membership must take ownership in their plans/benefits decisions and not allow it to be directed by a single individual without going to the membership first. Our membership is highly educated and will make informed decisions as long as the administration can give them the pro and cons of any issue.

LNG ORGANIZING

I would like to praise Tom Laird as he has worked tirelessly for the membership to secure new opportunities aboard LNG vessel since our members were displaced in the ProNav fleet in 2005. Despite his commitment and hard work, the new opportunities have been slow to develop. As a Labor Organization in the business of providing qualified labor to companies in need, the organizing process is a key factor in determining the AMO's viability in the industry. With your approval, I will make sure there is an organizing team assembled for the sole purpose of developing new opportunities for our members in both the domestic and international shipping arenas. We are uniquely qualified to make attractive offers to prospective LNG operators in that our members have the recent experience and training required to meet or exceed their existing standards. This recency of service, in combination with the SIGTTO approved training courses and facilities offered at the RTM Star Center in Dania Beach should serve to put us in a position to be a key provider of qualified labor as the need increases with the delivery of new vessels; however, we must constantly knock on doors and explore new opportunities and markets in which to expand our services. Through Tom&'s hard work and due to the expected shortage of qualified personnel in the foreseeable future, it seems inevitable that new opportunities will be forthcoming; however, it is important that we are able to provide prospective employers with a competitive labor package above and beyond mere qualifications, and doing so will require us to adapt to possible new ways of doing business and packaging our product. One such possibility could be to subsidize Plans contributions using liquidated assets as previously discussed to allow us to level the playing field and to allow our members the opportunity to prove to foreign flag companies or other prospective employers that the AMO provides them with the best options available to meet their needs in a competitive fashion. We have learned in the past that once we are in place we can prove to anyone that we get job done. We can always increase Plans contributions later.




FUTURE COMMERCIAL ORGANIZING

A key aspect of successful organizing will be to explore options with prospective companies, find out what their true concerns are, and determine why they do not want to man vessels with AMO members in order that we might alleviate their concerns and be able to meet their needs successfully. OMI had a contract with the Star center to train its foreign flag officers. They were told that if they wanted to use the facilities, they would have to place some AMO members on their vessels. That might sound beneficial on the surface, but it is a demand and not a negotiation. The RTM Star Center would charge them around 200 thousand dollars for two weeks at the facility in Dania. Given that they are a foreign flag company, and we are looking for international work, then why not reduce that 200 thousand dollars with the agreement to place AMO observers on their tankers to show the rest of the industry that we can work with foreign flag companies. Additionally, doing so will allow junior officers the opportunity to obtain the required load and discharge evolutions for the Tankerman-PIC endorsement.
Why is OSG balking at putting AMO to work on their tankers? Is it because of the monstrous lawsuit against MEBA? MEBA mans OSG's tanker fleet on the engine side and I am fairly certain that they have voiced objections to OSG management to any AMO members signing on these vessels. MEBA has new leadership in place, presenting us with a fresh opportunity to renegotiate with them.



LMSR FLEET

During the December meeting, a concerned AMO member from the LMSR fleet asked about the newly created SOA billet. This billet is not listed on any COI Safe Manning Requirements or recognized in any AMO contract. While serving in this capacity, the member was informed that he would only have to pay Chief Mate's dues. When the member asked about the 16 hours he would now have to work to complete the Masters, Chief Mate and EO’s duties, at a greatly reduced salary, he was advised by AMO incumbent administrators to merely document it for future reference. This apparent unwillingness or inability of the present AMO administration to take a strong posture on the member's behalf evidences an unacceptable lack of concern for the welfare of all members that needs to be corrected. Other members in the LMSR fleet have asked about the liabilities to their licenses when they are not allowed to work weekends while unlicensed personnel are required to work 7 days a week with little or no supervision. The incumbent AMO administrators have failed to address these concerns to any degree of satisfaction.

TRAINING

As IMO, Coast Guard, and Government regulations continue to demand more and more formal training for maintaining licenses, the members' time off is being reduced at an alarming rate. We should explore internet based classes allowing members to log on from home, listen to lectures, take quizzes, and then after completing a block of classes, go to either Dania or Toledo to take the final exams. This would minimize the time that the members would have to be away from their homes, time, which is already excessive due to the nature of seagoing careers. I believe that by reconfiguring whatever training could lend itself to this work-at-home format, we would get a greater number of members upgrading their qualifications in a shorter period of time. Since engineering officers will be required to prove proficiencies in upgrading in a similar manner to that required of deck officers in the near future, such a system would benefit all.

MEMBERSHIP ASSISTANCE

Article II, Section 1 of the AMO Constitution states, "The objects of this Union shall be.. when it be determined, to render succor to its needy, sick and distressed members.." We have too many members registered for work. In many cases applicants are holding permanent jobs to the detriment of book members who are unable to get employment. Our membership needs JOBS not calendars, shirts, and nick-knacks. We need to support those of our union brothers who are suffering through these economic hardships.

I would ask the membership to consider subsidizing medical benefits to members and families in the LMSR fleet that lost their jobs until such time as we have an opportunity to retrain them and put them back to work. If we start that process now without waiting until the situation becomes critical, the subsidization of medical benefits would cost us very little; however, if we wait too long to take action, adding an additional six months of medical benefits for these members could cost us a great deal more than necessary.

Due consideration needs to be given to what could happen to us and our families when this war is over, and that most of all the related government work returns to ROS (Reduced Operating Status). During the Vietnam War sealift, we had 6000 American Flag vessels. When that war was over, the American flag fleet was reduced to just 600 vessels. We must be proactive in developing programs and opportunities for those members who might be faced with unemployment due to a similar reduction of military sealift needs.

MAINTENANCE & CURE

When an officer gets injured aboard a vessel or has a serious illness during their time off they only receives $8 a day in maintenance and cure. How many of us could survive on that outdated amount? It is not difficult to imagine what the financial set back to a member and his family could be in the event of such an unfortunate incident. I would like the membership to consider expanding the Members Assistance Program (MAP) to offset the eventuality of such occurrences. By again liquidating unnecessary real estate holdings such as the houses that are outside the STAR Center compound such as the one the National President lives in and the adjacent house that is just setting unoccupied, properties that bring in no revenue at all. Those funds could be invested and the profits put into the program. These assets could be used to benefit members in their time of need. Subsequently, if any member experiences hardship caused by either injury while on board of a vessel or even at home, unexpected medical emergency, or natural disaster, the Union would be in a secure financial position to render aid. The AMO Plans have done an exceptional job in assisting the membership through like situations, but the cumbersome application and approval process involved can take months before a member actually receives the needed assistance. Members and/or contracted companies can voluntarily contribute to this fund and that would allow the Union to render immediate needed assistance to members in an emergency.

LIFE INSURANCE

Members have insurance that pays their survivors $50,000.00 in the event of their death, and $100,000.00 should the death be considered accidental. For unknown reasons, this insurance does not follow us when we retire. Allowing members to extend either part or all of this coverage for themselves and their families after retirement should be investigated.

COMPANY MEDICAL RECORDS

Several contracted companies have policies requiring members to take company physicals in addition to that required by the USCG prior to employment on their vessels. One member asked me why one of our companies is building medical records and medical histories on our members through these “required” physicals. Should contracted companies have the right to refuse employment to members who meet USCG physical requirements but not their more exacting company requirements? If they are contributing to the Medical Plan, and it is protected by HIPA laws, then the regular mariner's physical should be sufficient for them. When one member asked for a copy of his physical, he was flatly refused. Is it legal to store and withhold an individual’s medical records without his consent? Can these companies provide proof that this data is secure and not available to the company’s general employees or other outside interests? The Union needs to take positive action to insure that members’ rights are not being infringed upon, and that companies are taking all the necessary measures to secure data and protect members' personal information.

lngtanker2

NEW CONSTITUTION

The current administration's isolationist closed-door policies are detrimental to the membership. When the National President appointed to that office following the felony conviction of his predecessor, AMO members had high hopes that a new era of transparency and accountability was at hand. Upon learning that certain Executive Board Members were nominated and seeking to unseat the National President, Executive Board Members were advised in an e-mail that henceforth they would be required to make an appointment to see the National President or National Secretary-Treasurer. AMO members have long had the feeling that the AMO Administration, both past and present, felt that the membership was there to serve them and not the other way around. Members have never been fully informed on Union matters or empowered to contribute in the decision making process. AMO Administration seems to have ever been of the opinion that they know what is best for the members rather than allowing them to decide for themselves. Your elected officials should at all times work for you, the membership, and should be at all times accessible to members and the Executive Board to discuss Union matters. The institution of a closed–door policy does little to serve the membership, and is contradictory to the principals on which our Union was founded. We need to protect and empower our membership with a new AMO Constitution. This is the time to make a real difference in our UNION. Why is the Union being run from Washington by the National President when Dania Beach, Florida is headquarters? How come we still have secretaries on the payroll that earn more than Captains and Chief engineers?

TERM LIMITS

Every member that is elected to office should be given a salary and be free to act for the membership in their elected capacity. He should not be sent back out to sea because the current administration does not like him or feel he is not qualified. The membership has decided otherwise by electing him to office, and the National President should abide by the members’ decisions. In order to protect the membership from abuses of power and position, the AMO Constitution should be amended to provide for term limits. I would ask the members to consider imposing a two-term limit on officials in elected office. At the end of an official’s second elected term, he would have the right to run for a different elected position but would be disqualified from ever serving in his original capacity again. This would eliminate the possibility that one official would exercise a disproportionate amount of power and influence in a lifetime position.

ELECTRONIC BALLOTTING

It is the responsibility of the Union to keep members fully informed of Union business. Empowering the membership to have the final say in Union matters through the implementation of electronic voting would be the number one priority when I am elected. The last amendments to our Constitution were passed with only around 25 book members who just happened to be in attendance at the school at the right time voting to approve them. The AMO could present issues, contracts, benefits changes, and any item that concerns the membership via secure Internet website access. Members would be fully informed on the pros and cons of any issue and afforded the opportunity to cast a vote on it, either for passage or rejection as determined by simple majority.



TIME TO VOTE

I am inviting each of you to carefully consider these and the other serious issues affecting the AMO membership, and to vote your conscience in the upcoming elections. Regardless of who you decide to elect to office, changes are necessary to insure that the new Administration understands who put them there and for whom they will be working during their term in office. I pledge that should you decide to choose me to be your National President and initiate these changes, I will work in your behalf to achieve your objectives in a just and fair manner consistent with your wishes. Should you decide that another candidate is more suitable to achieve your objectives, I will continue to serve you faithfully in my current capacity as Executive Board Member at Large until such time as my term is completed or I am otherwise displaced from office.

Please understand that I do not have deep pockets to run a large or elaborate campaign. I can only afford to send you two mailings of my platform issues and campaign material. Please share my ideas with the rest of the membership as you join your vessels and discuss the issues at hand. Some members aboard may not be at home to receive information on the campaign issues.

Please feel free to contact me at: paulcates@paulcates.org or by phone after normal business hours at: (954) 696-7709.


Fraternally,
Paul Cates
AMO Book no. 336C