Posted:
November 18, 2011
By Tom Bethel
National President
To many dedicated veterans of the American labor movement, the greatest possible heresy is to say or suggest that a union should be run like a business. But, truth be told, a union is a business - not for profit, but a business nonetheless. Like any business, a union needs revenue: money to operate, to expand and to succeed in service to the union's "shareholders" - its dues-paying membership. And, as in any business, this money must be managed effectively.
As national president of American Maritime Officers, I am applying this practical perspective to a realistic strategy to transform our union's operation on the Great Lakes, where the steady decline of the U.S.-flagged bulk fleet and competitive complications could combine to compromise the long-term job and benefit security of every AMO engineer, mate and steward on the "Fourth Seacoast."
The U.S.-flagged Great Lakes fleet is not what it was 40, 30 or even 20 years ago, when AMO was the only officers' union worth mentioning in connection with the bulk cargo trades.
In the mid-1970s, the Lakes fleet stood at more than 100 vessels, and AMO was aboard all but a few of these boats. Our union had contracts with what was once referred to commonly as the "Steel Trust" - U.S. Steel Corp., Bethlehem Steel Corp. and Inland Steel Co. - and nearly all independent vessel operating companies hauling pelletized iron ore, coal and stone between Great Lakes ports. At the time, and for many years after, these proprietary and independent carriers competed on equal economic terms.
AMO also had contracts with companies that operated bulk carriers that carried grain on the Lakes and with a company that ran two petroleum product tankers in Great Lakes markets.
But U.S. Steel, Bethlehem Steel and Inland Steel no longer exist, and the independent vessel operators have retrenched, reorganized or consolidated. There is no more U.S.-flagged grain or tanker service on the Lakes.
Today, the Cleveland-based Lake Carriers Association reports only 55 vessels combined in its participating company fleets - and not all of these 55 vessels are staffed with AMO engineers, mates and stewards.
The harmful impact of diminishing Great Lakes fleet and job numbers on AMO - declines linked to factors too numerous to address here in any meaningful detail - was compounded by the collusion that led to the 10-year cut-rate bulk vessel contract between Interlake Steamship Co. (a longtime AMO employer) and the Marine Engineers' Beneficial Association in 2003. This contract altered the nature of Great Lakes cargo competition permanently in a way that gave Interlake a strong advantage over other vessel operating companies.
These circumstances were aggravated further by the failure of AMO under two previous administrations to adapt to these sweeping, lasting changes. In fact, the Interlake-MEBA contract stands as a stark symbol of the consequences of official complacency in AMO.
I do not want to see more Great Lakes vessels in permanent layup and more AMO jobs lost on the Lakes. I do not want AMO employers losing cargoes to Interlake unnecessarily. I do not want AMO on the Great Lakes to continue operating as though it were 1975.
It is time for AMO to adapt to a different environment or risk extinction on the Great Lakes. Thus, the AMO National Executive Board and I are developing a comprehensive plan to address these difficulties.
This plan actually began recently with membership approval of amendments to the AMO National Constitution.
Under one amendment, Toledo - our union's Great Lakes base - is no longer a constitutional port and no longer home to regularly scheduled monthly membership meetings. This will present no hardship to the engineers, mates and stewards on the Lakes because there are never enough participants in Toledo to constitute the quorum required to call an official AMO membership meeting to order.
Another amendment to the AMO National Constitution eliminated the official position of AMO National Vice President, Great Lakes, beginning with the term of office following the next AMO election in 2014. This will not reduce service to AMO members in the Great Lakes bulk fleets - representation aboard the vessels will be provided by an appointed representative, as it is now on the East, Gulf and West Coasts.
In addition, there will be staff reductions and reduced office space for AMO in Toledo - our union does not need the large area we now rent at One Maritime Plaza, which is owned not by AMO, but by the AMO Pension Plan.
All of these measures and others in development or under consideration will save AMO money in salaries, benefits and expenses, and they will keep the Toledo operating costs in Toledo in sensible proportion to the size of the Great Lakes membership.
One equally important element of this plan will be a contemporary, responsible approach to collective bargaining. We will focus exclusively on keeping AMO employers competitive without sacrificing the legitimate interests of the engineers, mates and stewards we represent on the Lakes.
As you know, greater union-wide operating efficiency and financial transparency are among the most significant policy reforms pursued by my administration since we assumed office in January 2007. We have cut the total union payroll (through attrition where possible), adopted and enforced a tight business expense policy that eliminates frivolous spending, sold properties our union no longer needed, carved out waste and redundancy, satisfied all debt and reduced overhead further by consolidating all headquarters functions under one roof.
These actions were the result of business decisions, and the Great Lakes initiative we will soon unveil in a specific way to the Lakes fleet engineers, mates and stewards will generate additional economic benefit, create new job opportunities and greater security, strengthen our union's position on the Lakes and begin moving AMO into a more competitive position.
As always, I welcome your comments, questions, criticisms and questions. Feel free to call me on my cell at (202) 251-0349.
Business perspective can transform AMO on Lakes
By Tom Bethel
National President
To many dedicated veterans of the American labor movement, the greatest possible heresy is to say or suggest that a union should be run like a business. But, truth be told, a union is a business - not for profit, but a business nonetheless. Like any business, a union needs revenue: money to operate, to expand and to succeed in service to the union's "shareholders" - its dues-paying membership. And, as in any business, this money must be managed effectively.
As national president of American Maritime Officers, I am applying this practical perspective to a realistic strategy to transform our union's operation on the Great Lakes, where the steady decline of the U.S.-flagged bulk fleet and competitive complications could combine to compromise the long-term job and benefit security of every AMO engineer, mate and steward on the "Fourth Seacoast."
The U.S.-flagged Great Lakes fleet is not what it was 40, 30 or even 20 years ago, when AMO was the only officers' union worth mentioning in connection with the bulk cargo trades.
In the mid-1970s, the Lakes fleet stood at more than 100 vessels, and AMO was aboard all but a few of these boats. Our union had contracts with what was once referred to commonly as the "Steel Trust" - U.S. Steel Corp., Bethlehem Steel Corp. and Inland Steel Co. - and nearly all independent vessel operating companies hauling pelletized iron ore, coal and stone between Great Lakes ports. At the time, and for many years after, these proprietary and independent carriers competed on equal economic terms.
AMO also had contracts with companies that operated bulk carriers that carried grain on the Lakes and with a company that ran two petroleum product tankers in Great Lakes markets.
But U.S. Steel, Bethlehem Steel and Inland Steel no longer exist, and the independent vessel operators have retrenched, reorganized or consolidated. There is no more U.S.-flagged grain or tanker service on the Lakes.
Today, the Cleveland-based Lake Carriers Association reports only 55 vessels combined in its participating company fleets - and not all of these 55 vessels are staffed with AMO engineers, mates and stewards.
The harmful impact of diminishing Great Lakes fleet and job numbers on AMO - declines linked to factors too numerous to address here in any meaningful detail - was compounded by the collusion that led to the 10-year cut-rate bulk vessel contract between Interlake Steamship Co. (a longtime AMO employer) and the Marine Engineers' Beneficial Association in 2003. This contract altered the nature of Great Lakes cargo competition permanently in a way that gave Interlake a strong advantage over other vessel operating companies.
These circumstances were aggravated further by the failure of AMO under two previous administrations to adapt to these sweeping, lasting changes. In fact, the Interlake-MEBA contract stands as a stark symbol of the consequences of official complacency in AMO.
I do not want to see more Great Lakes vessels in permanent layup and more AMO jobs lost on the Lakes. I do not want AMO employers losing cargoes to Interlake unnecessarily. I do not want AMO on the Great Lakes to continue operating as though it were 1975.
It is time for AMO to adapt to a different environment or risk extinction on the Great Lakes. Thus, the AMO National Executive Board and I are developing a comprehensive plan to address these difficulties.
This plan actually began recently with membership approval of amendments to the AMO National Constitution.
Under one amendment, Toledo - our union's Great Lakes base - is no longer a constitutional port and no longer home to regularly scheduled monthly membership meetings. This will present no hardship to the engineers, mates and stewards on the Lakes because there are never enough participants in Toledo to constitute the quorum required to call an official AMO membership meeting to order.
Another amendment to the AMO National Constitution eliminated the official position of AMO National Vice President, Great Lakes, beginning with the term of office following the next AMO election in 2014. This will not reduce service to AMO members in the Great Lakes bulk fleets - representation aboard the vessels will be provided by an appointed representative, as it is now on the East, Gulf and West Coasts.
In addition, there will be staff reductions and reduced office space for AMO in Toledo - our union does not need the large area we now rent at One Maritime Plaza, which is owned not by AMO, but by the AMO Pension Plan.
All of these measures and others in development or under consideration will save AMO money in salaries, benefits and expenses, and they will keep the Toledo operating costs in Toledo in sensible proportion to the size of the Great Lakes membership.
One equally important element of this plan will be a contemporary, responsible approach to collective bargaining. We will focus exclusively on keeping AMO employers competitive without sacrificing the legitimate interests of the engineers, mates and stewards we represent on the Lakes.
As you know, greater union-wide operating efficiency and financial transparency are among the most significant policy reforms pursued by my administration since we assumed office in January 2007. We have cut the total union payroll (through attrition where possible), adopted and enforced a tight business expense policy that eliminates frivolous spending, sold properties our union no longer needed, carved out waste and redundancy, satisfied all debt and reduced overhead further by consolidating all headquarters functions under one roof.
These actions were the result of business decisions, and the Great Lakes initiative we will soon unveil in a specific way to the Lakes fleet engineers, mates and stewards will generate additional economic benefit, create new job opportunities and greater security, strengthen our union's position on the Lakes and begin moving AMO into a more competitive position.
As always, I welcome your comments, questions, criticisms and questions. Feel free to call me on my cell at (202) 251-0349.