| Print | Close Window | AMO Currents - Posted: May 14, 2015 |
The AMO advantage - union membership provides significant returns throughout a sailing career
National Vice President
Government Relations
During the March 2015 American Maritime Officers membership meeting, I challenged the members in attendance to all become mentors, particularly to the junior officers trying to make their way up through the leadership structure.
I pointed out that AMO has not had a recruiting issue in the past few years, but that we have a retention issue. We are only retaining 48 percent of our academy graduates measured at the ten-year mark. This attrition is not only costly to the union and the contracted companies in terms of dollars, it is even more critical because we lose the ten years of experience.
I emphasized that AMO's future is incredibly bright. We have as many as 25 new ships being built for commercial service and coming our way in the next few years and we have seven SubCom cable layers standing up this year under long-term contracts.
Several of the senior officers in the meeting pushed back, stating that they don't know what to tell junior officers when the wages being touted in the Gulf of Mexico are so high. Universally, they felt some background material was needed that they could use to show the advantages to AMO membership over other unions or non-union jobs in the Gulf.
As was pointed out, non-union work in the Gulf is cyclical and tied to the price of oil. Although the Gulf was booming for a while, the price of oil has dropped, and with it, so has the demand for mariners. We are now seeing waves of layoffs in the Gulf fleets, and cuts in compensation for the mariners who remain employed. This is typical of the boom and bust cycle in the Gulf that we have witnessed over the years.
A career in the U.S. merchant marine, and specifically as a member of AMO, provides what the cyclical market in the Gulf cannot: job and benefit security. AMO officers are well paid, receive excellent benefits and have a variety of vessels, trades and operating companies to choose from when seeking a billet.
One officer at the meeting asked for a "tool box" to aid in discussions with junior members or members contemplating leaving the union. I am providing below, what I consider the major reasons to be a member this union.
1) Compensation
- Wages: The monthly wages earned by our members working under AMO contract are several times above the average earned in other professions. Our most senior members earn monthly wages that are the envy of many mid-senior level corporate officers. However, compensation is much more than wages. Compensation packages for AMO members include employer-paid vacation, retirement and medical, benefits, as well as no-cost training at STAR Center and other important benefits not found elsewhere.
- Vacation: This benefit is often seen as part of the wages. However, this benefit must be seen in its true light as part of the compensation package that allows our members to work an average of six months a year and be able to afford to live the other six months while not working - and this benefit is paid in a lump sum. Vacation benefits often represent 40 to 50 percent of a master's or chief engineer's monetary compensation.
- Pension: AMO has four pension funds - something unique in these days of minimal employee benefits.
Defined Benefit Plan: As with more than 80 percent of the traditional defined benefit retirement funds in the private and public sectors, the Defined Benefit AMO Pension Plan suffered significant losses during the economic downturn of 2008/2009 and the trustees froze the plan in place on December 31, 2009, and placed it in a red zone status to allow the plan to recover to the point it could provide benefits already promised to the membership. Every member's earned benefits, even if it was only one year, were preserved and since the plan was frozen, over 300 members have retired under the "20 years and out provision." This was a bold move and saved the plan. Today it is in the yellow zone with prospects of reaching the green zone in the next couple of years if there are no significant economic downturns.
Defined Contribution Plan: After freezing benefits of the Defined Benefit Plan, the trustees recognized that members continuing to work and those newly joining members needed a pension plan going forward. They asked the actuaries to design a Defined Contribution Plan where every member's retirement money went directly into the member's account. The trustees also wanted a plan that would provide equal career benefits to the old Defined Benefit Plan assuming normal advancement and conservative investing. The plan was instituted and contributions began in January 2011; however, the plan could only be funded at 40 percent of its projected amounts because the union could not require the companies to pay additional retirement benefits and all current contributions are required by law to continue into the Defined Benefit Plan until it is back in the green zone. The percentage has incrementally been raised to 55 percent and the lowest tier raised to 6.6 percent by cutting costs, staff reductions through attrition, and consolidating operations.
Money Purchase Benefit: This benefit is in place for all deep-sea members. The amount averages 4 percent for each individual and is placed in each individual's account similar to the Defined Benefit or 401(k). Great Lakes members do not receive MPB, but instead receive a similar amount matched to their 401(k) accounts.
401(k) Plan: Every member has the opportunity to open a 401(k) Plan that grows in parallel with their Defined Contribution Plan and Money Purchase Benefit. The 401(k) is self-funded but offers every member the opportunity to grow retirement funds in a tax-free account. A good way to think of this is, if you are in the 25 percent tax bracket (like many members), then for every $4 you contribute, Uncle Sam contributes $1 (the dollar in tax that it would have cost you if the plan were not sheltered from taxes). Thus, even if you only keep up with the cost of living increases, you have made 25 percent on your money.
3) Education: The STAR Center is an often overlooked benefit because it is taken for granted. However, STAR Center has estimated that, depending on the programs you sail in, at the 10-year point, most of you will have a senior level license and we will have invested between $70,000 and $100,000 in each of you. This is money that a company would have had to provide to you or it would have come out of your pocket. Your ability to take training at no cost, with room and board included and a scholarship for attending training, is a huge benefit. And, we encourage members to bring their families so they can enjoy the facilities and spend time together while training. STAR Center works to make this as enjoyable and painless as possible.
4) No Hiring Halls: Everyone knows the other unions require members to sit in a hall in order to ship. AMO doesn't have halls. We have a Web-based job board that every member has access to and two deep-sea dispatchers that every member can call. No other maritime union has that. We believe that when you are on vacation you shouldn't have to be tied to the union hall in order to ship.
5) No Rotary Shipping: AMO doesn't rotary ship as the other unions do. Over 60 percent of our members have permanent jobs - right down to 2nds and 3rds. We simply have a different philosophy - crew stability provides a safer ship. And our companies like stable crews. They do not like rotary shipping.
6) Book Privileges: AMO only has two types of member: an applicant and a full book member. There are no A, B, C, D books with different privileges. An AMO applicant can become a full book member at any time after their first job. All they have to do is pay off their initiation and submit recommendations from two book members. A book member enjoys all benefits of membership in AMO without restrictions.
7) Lowest Dues: AMO has the lowest dues of any officers' union. Period. Dues for the most senior positions are less than $1,900/year. The dues of other unions for senior positions range to highs of over $5,500/year.
8) Job Availability: AMO maintains approximately 2.0 members per job. This ensures there is work for everyone. Yes, there are mismatches in training that may limit a member's options, but, again, the training is available from the STAR Center at no cost. The point is, there are jobs now and more coming. We need every member to be trained and prepared to move to new ships as they come online. We are working closely with our companies to ensure trained, competent personnel are matched with jobs.
9) New Ships: There are currently as many as 25 ships in the new-building pipeline. All will be crewed by AMO. The majority are tankers and that is why we developed the 30-day Tankerman PIC program. Much of the new tonnage will be either LNG-powered or dual-fuel. That is why we developed LNG fuel training as one of our broader state-of-the-art LNG training programs. These ships will begin to deliver at the end of 2015 - this year!
10) Direct Representation at IMO and with U.S. Government Agencies: Every law and regulation a member is governed by begins at the International Maritime Organization in London. You have direct representation in this organization. As your vice president of government affairs, I chair an international committee that provides the only unified voice for all seafarers and it is the only representative for organized labor. This means we are watching out for you at the international level, then we come home and watch over how the Coast Guard implements these international conventions.
11) Responsive Officials: AMO members have direct access to every National Executive Board member and official. Most of us have our cell phone numbers listed on the website and printed in the newspaper and any member can call us with an issue at any time - and they do.
12) Transparency: AMO is the only maritime union that posts all of it financials online. Your officials continue to strive for the most open, transparent administration in organized labor. If you don't know how to find something, you can call an official for help. Ask members of other unions how accessible their presidents and vice presidents are.
13) Representation: AMO members have a direct voice in Washington, D.C. at the highest level of government. We work very hard in Washington to keep abreast of the latest threats to our industry. There are many in Congress who don't understand our industry and don't understand our importance to the national and economic security of this country. But there are also many who do understand, thanks in large part to the work AMO has done on Capitol Hill. It is a daily battle for the hearts and minds of Congress and the administration. AMO is there every day to remind them of your importance.
In summary, AMO has streamlined itself to be the maritime labor force in the 21st century. We are structured differently from the other unions, we have a different philosophy on how to advance our goals and we are planning today so we can be the premier officers' union for the next thirty years. These are some of the reasons to join AMO and remain a member for life.
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