Bareboat charter remains on table after AMO-Rand meeting, but talks suggest controversial issue is not insurmountable
The 2021 five-vessel bareboat charter agreement between American Steamship Co. and Grand River Navigation Co. remains on the table, but an honorable resolution is within reach.
This was one encouraging development during my February 25 meeting with Rand Logistics Chief Executive Officer Dave Foster in Hollywood, Florida, during three hours of good-faith discussion centered on several issues affecting the Great Lakes shipping industry. As you know, Rand Logistics owns both American Steamship Co. and Grand River Navigation Co. - which has a collective bargaining agreement with the International Organization of Masters, Mates & Pilots.
For example, Foster told me American Steamship Co. this year is investing $50 million in "shipyard work" focused primarily on hull and deck maintenance and improvements to living quarters for the AMO engineers and mates employed aboard the company's six 1,000-foot bulk carriers.
This was in the context of a recent Lake Carriers' Association report that all Great Lakes fleets are spending $83 million on vessel maintenance in advance of the 2022 Lakes shipping season and the opening of the Soo Locks at Sault Ste. Marie, Michigan, later this month.
Foster and I also discussed two subsequent LCA reports - one noting that Great Lakes shipments of iron ore, stone and coal were up 16.8 percent in 2021 (less than one percent below the industry's five-year average) and the other advising that, while shipments in January 2022 were down 4.7 percent, loadings were above the five-year average for the month.
Other topics discussed at length included the forthcoming construction of a second large lock at the Soo to accommodate thousand-foot iron ore carriers and the potential impact of the Biden administration's massive, Congressionally approved infrastructure repair and replacement measure, which is expected to increase demand for iron ore and other industrial raw materials hauled under the U.S. flag by Great Lakes vessels, and the severe shortage of ABs for Great Lakes service.
As for the bareboat charter agreement, this matter is as complex as it is controversial. The harmful consequences for American Maritime Officers included the loss of 40 jobs and the end of employer contributions to AMO Plans - the membership benefit funds that serve all deep-sea, Great Lakes and inland waters AMO members and their families - covering the five vessels transferred to Grand River Navigation Co.
For Grand River Navigation Co. - and for Rand Logistics by extension - the complications include Grand River's proven inability to recruit and retain qualified engineers and mates, what AMO has referred to as widespread "incompetence," the safety and quality of life and labor deficiencies identified by the U.S. Coast Guard in its 2021 fitout inspection reports and the potential risk of benefit fund withdrawal liability resulting from the termination or diversion of employer contributions to AMO Plans.
I did not go into this meeting with Dave Foster anticipating easy, immediate settlement of the bareboat charter issue. But we had a civil, cordial and comprehensive conversation and an honest, mutual commitment to improving the business relationship between the largest union of USCG-licensed seagoing professionals and American Steamship Co., which has been in productive, profitable Great Lakes bulk cargo service since 1904.
Foster has agreed to follow through with a proposal to end this specific dispute once and for all to our mutual benefit in our next meeting, which had not been arranged as of this writing. AMO members will be advised of specifics as they emerge.
I am grateful to the AMO engineers and mates we are privileged to represent in American Steamship Co. and across the Great Lakes for their patience and for their input during a difficult year-long stretch.
Many believed our union would never settle our new five-year collective bargaining agreement covering the engine and deck jobs on the "footers," but we overcame the obstacles with the assistance of a savvy membership committee that participated directly in every aspect of the negotiations - Engineers James Beland and John Crocker and Mates Ryan Miller, Morgan Miller and Mates Reed Wilson and Alex Damer, who filled in for the Millers during the last round of bargaining in Detroit.
Thank you for listening ...
Paul Doell
President
American Maritime Officers