Safety in The Offshore Industry
The Reality vs. Self-Serving Union Allegations

For many years, companies of all stripes have been engaged in providing the multifaceted professional and industrial services required in the broad theatre of offshore operations, and all of them have been inexorably drawn, over the years, into the natural but intense evolution of safety consciousness that has inevitably and substantially grown during those years, particularly, in the last decade. And yet, labor organizations have taken to attacking the offshore industry, alleging that safety practices are below even minimum standards. These are empty, pathetic allegations. (So, with respect to these charges, one should pay heed to William Penn's words of caution: "Have a care,…when there is more sail than ballast.")

The undeniable, constructive evolution with respect to safety, in all phases of offshore operations, has been driven by a wide variety of factors. Common sense, corporate responsibility, self-preservation, competitive pressure, insurance company demands, government intervention, employee influence, economic reality, and other factors have generated, as would be abundantly clear to any objective and reasonable observer, a many layered cake of safety rules, regulations and policies. These were created through the constructive interaction of employees, companies, government agencies and other interest groups which focus on personal workplace safety issues, and on protection of the environment. For example, this investment in workplace safety by OMSA members has resulted in an 80% reduction in recordable incident rate over the last 10 years (from 6.8 to 1.4. (Under 2.0 is considered very good in any industry, with many of those having fewer inherent risks than this one)

Let us name just a few- in fact, only a very, very, few-programs that are in effect and actively implemented every single day, in every locus of operation within our industry. Some of these programs are corporate, some sponsored by trade organizations, others established and monitored by special, independent entities. For example: The IADC Rig Pass program, PEC Safety Orientation, Halliburton's Offshore Safety and Water Survival Training Program, OMSA's New Employee Safety Orientation, Safety Statistics and Analysis Programs and the Offshore Operators Committee Safety Work Team that brings together companies and industry groups across the entire offshore spectrum to develop comprehensive safety programs, policies and procedures. Over thirty companies and organizations each year enter their extraordinary safety programs into the NOIA's Safety of Seas Award alone.

And as we have indicated, these represent only a handful of the productive safety programs, a mere reflection of the hundreds in force throughout the offshore industry that serve to protect lives, property and the environment. They cost millions of dollars to administer and they are enhanced constantly, through regular oversight and experience. Furthermore, millions of dollars are awarded to industry employees as bonuses each year for extraordinary performance in maintaining the standards of safety set out by their government, their industry and/or their employers. Many other employees are proud recipients of non-monetary awards, i.e. personal recognition by companies and government for outstanding contributions by employees to safety in the workplace. Few companies, in this day and age, do not have, in house, a trained Safety Specialist or Human Resources personnel with safety training, some with Train the Trainer credentials. OMSA, for example, has established the OMSA Safety Orientation Program, with a Train the Trainer component. The goal of this marine industry orientation program is to reduce accidents, promote safety and a healthy work ethic and to protect the environment by providing a source of information including basic safety policies, procedures and precautions to be incorporated into everyday operations on marine vessels and associated locations in the marine oil industry. And, as we have said, there are many such programs throughout the business.

The offshore industry is a tough industry, one which demands, more than most, both routine and high risk performance. Nevertheless, this industry has a remarkable, praiseworthy safety record in comparison with most including, ironically, those industries or maritime enterprises that are predominately populated with union workers.

In fact, there is an abundance - a mind blowing abundance of evidence that this industry is verifiably, quantifiably immersed in effective, honest efforts to practice safety and to enhance safety whenever thoughtful consideration and/or experience demands or recommends it, or where the government or client insists upon it. There are not perfect or foolproof safety systems in place, it is true. That is true everywhere. In every industry. But there is, in fact, irrefutable and substantial proof that the offshore industry takes safety very, very seriously. And the proof is, clearly, in the pudding, viz. our 80% reduction in the average accident rate over the past decade. Another example is the IADC's record of lost time incidents which average less than 1 for every 200,000 man hours of work.

And yet - here are the unions, bemoaning the "horrible" state of affairs in the offshore industry, maintaining, with a straight face, that the conditions in which our good offshore workers are engaged, are on the level of "third world countries". U.S. labor organizations have taken to calling in their union cousins from Norway, the U.K., Australia and places at large to add their voices to the cries of "injustices" that are allegedly imposed by our companies on offshore workers in the U.S. Unfortunately, experience has taught this writer, at least, that the unions, to advance their agendas, are entirely capable of and routinely given to such absurd exaggerations. These protestations poison their credibility on this point and others, as it well should.

Who are these people? Where, in heaven's name, do they get this stuff? How do they find the gall to make such bizarre, unreal allegations? Are they so wrapped up in their self-serving tactical propaganda, and so ignorant of actual operating conditions offshore, that they simply do not recognize the insult it represents to our workers' intelligence and basic sound judgment? Apparently not.

All of us could agree with reasonable, objective observations, such as, that accidents do occur, that we could all be more careful, do better, and that we should keep working to improve conditions offshore. In fact, we all do acknowledge and agree with those facts and objectives. And we are doing precisely that. But these are people so addicted to exaggeration, they couldn't even tell the truth without lying.

Third world country conditions indeed. Good grief, you union guys. Get a life!

Bob Alario   

Part Deux:
The OMSA team has been extremely active since the April meeting, engaged in everything from regulatory battles, to union resistance and golf tournaments to fishing rodeos. As intensive and diverse as things get in our small office, I am grateful for the fact that our staff is so effective and works so well together. A team effort, after all, is a lot of people doing what I say. (Just teasing.)

Actually, I subscribe to Samuel Goldwyn's philosophy. "I don't want any yes men around me. I want everybody to tell me the truth…even if it costs them their jobs." More seriously, we at OMSA subscribe to the work ethic that "after all is said and done, more is done than said."

Bob  

OMSA Meeting Notice Update
Thursday, Oct. 25
Hilton Towers
New Orleans, LA

Please note that the OMSA meeting this week is on THURSDAY. This is the last business meeting of 2001.

The Committee meetings and general business meeting are extremely important! Please have a company representative attend.

Special Announcements

1. Re: Homeland Security - RADM Roy Casto has been invited to address the membership at the Dinner Meeting on the issue of homeland and security, and the initiatives of the Eighth USCG district in that effect. Capt. Stephen Rochon, Capt of the Port of New Orleans, and Capt. Dan Ryan, Chief Eighth District Office of Marine Safety and Environmental Protection will present specific initiatives and recommendations relative to the role our industry and other maritime sectors should play.

Companies are reminded to send a designated representative to the Safety Committee prepared to DISCUSS, DEVELOP and SHARE vessel and dockside SECURITY policy and procedures.

Please, for discussion, be prepared to talk about the top 3 personnel & physical security changes your company has made since 9/11, and the top 3 personnel and physical security concerns you foresee as the most visible problems.

2. Re: Committee Action Needed - Liftboat, Towing and Geophysical Vessel Committee: Members are reminded that they must complete for discussion the STCW compliant training and assessment modules for their sectors in order that the transitional, bridging competencies can be identified, developed and addressed. These are competencies that are peculiar to the function and operation of each group of these vessels, as compared to an OSV, using the OMSA OSV program as the foundation to build from.

3. Human Resource and Safety Committee: You are reminded of the URGENT need to provide your input to OMSA staff on the issue of Fatigue, Crew Fitness for duty, the 12 hr. Rule, the GCMA/OMU demand for log book entry, etc. These will all be discussed at the NOSAC (National Offshore Safety Advisory Committee) meeting scheduled for Nov. 8 in New Orleans.

Each company is requested to have at least one representative attend this meeting. The Subcommittee on Fatigue, the 12 hr rule and Crew Alertness is meeting on Nov. 7.

4. Re: OMSA Website Development - Marketing/Contract RFP's, etc. - OMSA member Ricky Green of Waternet, LLC, will present a general overview of the significant and interesting augmentation of the OMSA website with respect to marketing of member products and services. This should be an extraordinary tool for all OMSA members, and associate members in particular.

5. Re: Unions - Two new educational videos on union organizing and impact have been developed by Projections, Inc. These videos will be shown to the membership, and your comments will be solicited for the final cut.

OMSA
3rd Annual
CAJUN TROPICS FISHING RODEO

Another example of the hard work and generous support of OMSA's Associate Members. Take note, you Regular Members!

The OMSA 3rd Annual Cajun Tropics Fishing Rodeo was launched from headquarters at the Sand Dollar Marina in Grand Isle, Louisiana on Friday, June 29th with a Cajun Tropic Social. Saturday, June 30th (Fishing Day) commenced with over 120 fisherpersons in various conditions of disarray going out at safelight and returning per the weigh-in times scheduled. After a brief bout with some stormy areas in the early hours, OMSA fisherpersons enjoyed a beautiful day. The following awards were given after cocktails and dining that evening:

OMSA's 3rd Annual Cajun Tropics Fishing Rodeo was organized by greatly appreciated OMSA members who dedicated their valuable time and resources to make this event, a success once again. The following OMSA committee members and volunteers have our thanks:

Chuck Freeman (Electronic Design, Inc. / EDI), Tony Morvant (Tobias), Cody Morvant, Elliot Mistich (Jade Marine), Robert C. Alario (Alario & Associates), Sharon Stoskopf (Intermedia), Sand Fradella (Frank Fradella Real Estate), Lisa Loup (AMK Landscaping), Tony Canatta (Contractor),

Our very special thanks are also due to the following OMSA members who were generous sponsors of the 3rd Annual Cajun Tropics Fishing Rodeo:

Congratulations to Mel Victory of Hydraquip who won the $1,000 cash prize drawing and Bruce Callais of Allied Shipyard, Inc., who won the $500 cash drawing prize sponsored by OMSA, both needy little buggers.

WORLDCOM PARTNER MARKETING

WorldCom Partner:
Below are important promotions recently announced that are available to OMSA members. Please distribute this information to personnel at your company that handle your communications needs. If you have any questions, please contact our WorldCom Program Manager, Jeff Wilson or Mitzi Ray (OMSA).

Bundled Internet/LD promotion (7/1/01-9/30/01) The Internet/Long Distance Bundled Promotion is ideal for companies requiring voice and data services. Eligible customers signing up for a channelized T1 with a configuration of up to six channels of Internet gateway service (384K bandwidth) and the remaining channels for Long distance voice service will receive a promotional monthly recurring charge of $325 for the Internet Gateway usage.

Internet T1 3Q01 Promotion (7/1/01-9/30/01) New and existing customers adding new Internet T1 circuits are eligible to receive up to 35% on Flexible T-1 Circuits and up to 40% off of T1 PPO & T1 Double/Diverse circuits off their monthly recurring port charge (based on contract term length).

IP VPN Total Access Customer Testimonial Installation Waiver Promotion (7/1/01-9/30/01) Total Access takes advantage of VPN equipment, and uses an IP Security (IPSec) encryption standard. It is an integrated product offering that enables customers to utilize a single customer premises equipment (CPE) solution to provide both site to site and remote access IP VPN support. This solution provides customers with the ability to secure their mission critical applications over a public infrastructure, but also enables customers to access the Internet with the same configuration. This promotion offers customers free installation for up to 10 sites if the customer agrees to be interviewed and sign off on a customer testimonial within 30 days of installation of the VPN. Customer must purchase a minimum of 5 circuits with one circuit being a T1 or greater.

Web Center Launch Promotion (7/1/01-10/31/01) Designed to drive sales of WorldCom's new Web Center services, the Web Center Launch Promotion waives the $2,000 monthly recurring charge for the first three months for customers signing a 12 month or greater term contract for Web Center service .

Local Satisfaction Guarantee Promotion (7/1/01-9/30/01) The Local Satisfaction Guarantee Promotion certifies WorldCom Local Service quality and reliability with a "guarantee" that our customers will be satisfied. This offer will allow customers the option of discontinuing the service within the first 90 calendar days of service with no financial penalty for early termination if they are not satisfied with the service. The trial period will begin upon service installation. During the trial period, customers will be responsible for all recurring and non-recurring charges associated with the new Local Service specified in their contract.

Internet T1 July Fire Sale Promotion (7/1/01-7/31/01) New and existing customers adding new Internet T1 circuits are eligible to receive 50% off their monthly recurring port charge.

Internet T3 3Q01 Promotion (7/1/01- 9/30/01) New and existing WorldCom customers signing a term contract and adding new Internet T3 service July 1 - September 30 are eligible to receive up to 40% off their Internet Dedicated T3 monthly recurring port charge based on the length of their contract term.

For more information on these promotions please call 1-800-WORLDCOM and let them know what association you are with. Locally (Louisiana), you may contact Jeff Wilson at (504) 832-1400. A WorldCom/OMSA account representative will arrange a meeting to discuss your specific needs and concerns. Please call Mitzi Ray (504) 734-7622 or by e-mail, mitzi@offshoremarine.org should you have any questions or suggestions regarding the WORLDCOM/OMSA Affinity Program.

THE 2001 OMSA APRIL FOOL GOLF CLASSIC

The 11th Annual OMSA April Fool Golf Classic took place at Le Triomphe Golf and Country Club (Broussard, LA) on Monday, April 23, 2001. The Lafayette Hilton & Towers was the headquarters for the tournament and OMSA's second quarterly meeting of 2001.

The afternoon and morning tee times SOLD OUT and threatening weather passed over our group allowing OMSA members a great day to relax, say hello to old friends and meet new ones.

Therefore, a very special and appreciative thanks to our wonderful Associate and Regular Member SPONSORS who make this Tournament possible for all of us.

JULY MEETING UPDATE

The July quarterly meeting was jam packed with information. The day started off with committee meetings. Each committee had a full agenda with the OSV committee discussing the issue of Underwater Inspections in Lieu of Drydocking with Peter Hill of RRS Engineering, the towing committee discussed at length the new Coast Guard requirements for Towing Officer Assessments, Human Resources got a detailed briefing of union activities and the liftboat committee discussing sea service credit for liftboat operators. The revitalized Associate Member Business Development Committee is taking shape under the direction of Chuck Freeman and Mitzi Ray.

In the afternoon there were two simultaneous power-packed presentations, one by the Coast Guard and one by Lemle Kelleher. The Coast Guard briefed the membership on their crew endurance programs, a non-regulatory approach to addressing issues of crew fitness for duty. Lemle experts briefed the membership on criminal investigations of environmental crimes and brought in an EPA investigator for a real-world government perspective of how and why they conduct criminal investigations of environmental incidents.

During the regular business meeting special presentations were made by Dr. Diane Austin of the University of Arizona on her research into the effect of the oil industry on South Louisiana and LT XXX of the Coast Guard who presented the DOT changes to the drug testing regulations.

At the dinner meeting Peter Richoudi presented a very entertaining look at investing and analyzing value stocks.

We hope to see you at the October meetings.

TO ACCESS THE MOST CURRENT INFORMATION ON LEGISLATION LISTED IN THIS SECTION GO TO THE THOMAS LEGISLATIVE WEB PAGE AT HTTP://THOMAS.LOC.GOV/ AND ENTER THE BILL NUMBER IN THE ARTICLE

Rep. Nick Smith (R-Mich.) introduced on May 26th H.R. 2046, the Coastal Shipping Competition Act, a measure intended to allow foreign interests access to the U.S. domestic waterborne trades. H.R. 2046 would relax U.S. citizen ownership and construction requirements in addition to permitting foreign vessels to engage in the domestic trades provided such vessels received permission from the Secretary of transportation. H.R. 2046 has been referred to the Transportation and Infrastructure and the Armed Services Committees.

The Act authorizes a foreign qualified vessel, or a vessel of foreign registry to be issued a U.S. coastwise certificate if the governments involved extend reciprocal privileges to U.S. vessels to engage in their coastwise trades. In addition to allowing foreign vessels to participate in Coastwise Trade it authorizes the crewmen on these vessels to sue for injuries or death in U.S. court

All OMSA members should review the entire text of this proposed legislation and contact their representatives in Congress to express the view that any legislation that negatively impacts the Coastwise Trade protections of the Jones Act to U.S. vessels is unacceptable, as is burdening our companies and courts with additional potential for lawsuits. Trial lawyers/plaintiff attorneys will naturally favor these proposals. OMSA will aggressively oppose this initiative.

Louisiana Act 1171 (formerly House Bill 1295), signed by Governor Foster on June 29, 2001, becomes effective on August 15, 2001. This Act revises current Louisiana law requiring that employees pay discharged employees their final paycheck within three days of termination. The new law provides that employees who have been discharged must be paid their final paycheck "on or before the next regular payday or no later than fifteen days following the date of discharge, whichever occurs first." This amendment makes the time for payment to discharged and resigning employees the same. Full text copies of the final versions of Louisiana Acts can be reviewed on the Louisiana State Legislature's website at www.legis.state.la.us. Source: Labor Alert Newsletter, Onebane.com.

Rear Admiral Roy Casto accepted command of the Eighth Coast Guard District from Rear Admiral Paul Pluta during a Change of Command Ceremony, May 4th at New Orleans' National D-Day Museum. As District Commander, Rear Admiral Casto is responsible for U.S. Coast Guard operations covering 26 states, 1200 miles of coastline, and 10,300 miles of inland waterways. Rear Admiral Casto most recently served as Assistant Commandant for Acquisition at Coast Guard Headquarters in Washington, D.C.

We welcome Admiral and Mrs. Casto to New Orleans and the Gulf South. We look forward to working with Admiral Casto, and we will do our part to make him feel as comfortable, and successful as we can, as quickly as is possible. An interesting side note is that the father of Admiral Casto's wife, Nancy, Vice Admiral Ellis Perry, had himself served as the Commander of the Eighth Coast Guard District in 1973-1974. Extraordinary.

For the last two years OMSA has had the pleasure of working with Captain M.S. "Chip" Boothe as Commanding Officer of the NMC. Capt. Boothe has been reassigned to the Seattle Washington area. We wish him well in his new post. Captain Boothe, his deputy, Don Kerlin, and staff have worked tirelessly with OMSA on a variety of issues, relative to STCW certifications for offshore mariners. We will certainly miss Captain Boothe, but want to welcome Captain Ernest Fink as the new Commanding Officer of the NMC. Captain Fink has been on board at the NMC for about a year now. He is familiar with our industry. We look forward to a smooth transition due to Captain Fink's expertise and sound decision-making skills.

U.S. Coast Guard Headquarters and the USCG Research and Development Center are working closely with the marine industry in developing an approach for managing factors that affect crew alertness. This non-regulatory approach is designed for both shipboard and shore-side personnel, and it is particularly well suited for the unique offshore marine operational environment. A critical step in this approach is education, viz. increasing awareness and educating management, mariners and ship's officers about crew endurance and fitness for duty issues. The Crew Alertness Campaign will provide the means for sharing information and increasing understanding of the issues, while fostering open communication between the Coast Guard and Industry. This is a non-regulatory approach which we strongly support.

OMSA arranged for LT Scott Calhoun and Dr. Carlos Comparatore to speak to OMSA members at our July regular meeting. They met with committee members in the morning and made a special presentation in the afternoon. We also made arrangements for them to meet with a group of masters mates and engineers to learn more about the nuances of the offshore vessel industry. OMSA has previously been approached by several commercial groups who have wanted our members to participate in studies and tests of commercial fatigue management applications. After close study of the commercial proposals and meetings with Coast Guard personnel we are convinced that the Coast Guard programs offer the best flexibility in examining your companies crew endurance issues. These programs have received strong approval and shown great success in the inland and deep-sea industries, as well.

OMSA has been working with several suppliers of regulatory research materials to provide our members with the easiest to use, most complete method of keeping up with applicable Federal regulations. We have partnered with RegScan, a supplier of the most current regulatory material covering Federal, State and International regulations, to develop, with OMSA, a product tailored to your specific regulatory information needs. RegScan's value-added data features will allow you to efficiently navigate through U.S. Code and Code of Federal Regulations with ease - and without the need to wade through unecessary information that has no relevance to your business. The most unique aspect of this program is our ability to adjust the regulatory product set to suit your needs.

RegScan, Inc. created the search software that supplements the power of its hard-working data features. In fact, RegScan is still the only software that was designed and built specifically for searching regulations. Because they're so focused, they've been able to create some of the most innovative features available today. Having all of the regulatory information in the world doesn't do you any good if you can't put it to work. RegScan wrote their software with regulatory users in mind. So it's full of powerful functions that help you get your job done.

OMSA members now have the opportunity to take advantage of the following offer:

1. Quarterly data delivery on CD-ROM.
2. Data will include 19, 29, 30, 33, 40, 46 & 49 CFRs and Titles 33, 43, 46 of the U.S. Code (other data may be added per OMSA's request and upon RegScan's review), with RegScan's search engine.
3. Yearly cost to members is $295.
4. Contact David Andre @ 281-759-2441

We recommend you give serious thought to, and act on, this opportunity.
I am giving up one of my greatest research secrets here. This is the system that I use at OMSA to search the regulations. Ken Parris

A limited number of the rule's provisions were effective on 18 January 2001. These provisions: (a) provide a means for DOT to effectively exclude companies from acting as service agents (a "public interest exclusion"); and (b) require medical review officer (MRO) review and split specimen testing following adulteration or substitution findings.

The remainder of the rule become effective on 1 August 2001. Policy issues addressed by the new rule include:

Employee stand-down. Under the existing regulation, employers are prohibited from temporarily removing an employee from performance of duties upon leaning of an individuals confirmed laboratory positive drug test but before MRO has completed the verification process. The new rule allows employers who can show cause and implement certain safeguards to obtain waivers of the stand-down prohibition from the governing agency.

Return-to-Duty Process. The rule requires that the substance abuse professional (SAP) mandate some level of assistance in every case, as well as prescribe a minimum number of follow-up tests for each employee who returns to duty following any violation of the rules. The rule also clarifies that the follow-up testing requirement follows the employee from one job to another and persists through a break in service.

Collector Training. The rule requires significantly more training for collectors.

Consortia and Third-Party Administrators. The final rule allows employers that utilize consortia or third-party administrators to have information transmitted through these intermediaries. This is not a change from the Coast Guard's rules, but is a change from the DOT rules, which had prohibited this practice.

Collection Process. There are a variety of changes to the rules governing collection of samples. One significant change is the requirement to collect split specimens under all DOT agency rules -- the Coast Guard will be amending its regulations to conform to the new DOT requirements in this regard. The rule also requires near-absolute separation of DOT drug and alcohol testing from any other testing.

Previous Employer Query. The rule adds a requirement to, after obtaining the employees consent, query previous employers for drug and alcohol test information. If the employee refuses to provide consent, he or she cannot be placed in a safety-sensitive position. (OMSA has submitted additional comments on this issue)

We will probably arrange for a special seminar/presentation on this subject if our members indicate a need to do so.

Below, we have outlined a series of issues that OMSA has raised with the Coast Guard at the OCMI, District and Headquarters levels. Requests have been forwarded to the appropriate offices to consider our recommendations. Meetings have been held with the REC, Capt. S. Rochon, MSO New Orleans and Capt. Dan Ryan, MSO Morgan City.

On June 28, 2001, R. J. Alario and Ken Parris of OMSA met with RADM Paul Pluta and his staff in Washington, D.C. to discuss the subject issues. We are pleased to acknowledge the cooperation we have received in defining the issues and in out mutual efforts to constructively resolve these complex issues.

At our quarterly business and committee meetings on July 24, we will be in a position to report more fully on several of the issues that remain outstanding as of this writing. In the meantime, be advised as follows:

1. Issue: The February determination by the USCG, MSC Admeasurement Division, to add the volume between bulwarks and railings into the calculation of ITC tonnages of OSV's creates an acute problem for offshore vessel operators. This decision creates an extreme competitive disadvantage to U.S. Flag offshore support industry vessels, especially in the lucrative deep-water operations. Impact: The inclusion of open deck space into tonnage would seriously limit the design of any vessel whose tonnage was at or near a regulatory breakpoint. Comment: OMSA formed a task force to deal with the issue. The task force met, and discussed all relevant positions. Recommendation: OMSA sent a 10-page letter to the Coast Guard Marine Safety Center detailing that this sudden departure from accepted tonnage admeasurement policy contradicted previous interpretations of the International Tonnage Convention and was not consistent with safe vessel design or other countries interpretations of the convention. The task force members also met (teleconference) with Coast Guard officials to discuss this issue and ask that the policy be rescinded. Coast Guard Action: The Coast Guard has reviewed and agrees with the OMSA position and has since rescinded its interpretation. A formal policy ruling to that effect is in development.

2. Issue: Sea Service Credit for Liftboat Crews. Impact: Coast Guard NMC Policy letter 09-01 was written to provide REC's guidance on making sea service determinations for mariners working on vessels that "do not get underway or that get underway for only limited periods of time." In this policy letter liftboats have been lumped together with permanently moored casino vessels, OSRV's and Ready Reserve Fleet vessels. This policy creates for the REC's and the personnel departments of vessel operating companies a nearly impossible record keeping and documenting sea service for liftboat personnel. Liftboats are a special service vessel that provides a stable work platform for personnel servicing oil production platforms in the Gulf of Mexico. In the policy, service may be credited without restriction on days when the vessel is underway. When the vessel is elevated for "extended" periods of time sea service is credited at the rate of 1 for 3. Keeping track of underway or elevated days during the course of a contract would be extremely difficult if not impossible. Comment: We have on several occasions in the past worked with the Eighth District Headquarters and REC to resolve the issue of sea service accreditation for personnel aboard lift boats. As recently as the April meeting in Lafayette, in a joint industry/USCG meeting, the REC, through Dan Hall, confirmed the policy we had, previously, cooperatively developed remained in effect. On April 23, only one day later, a policy letter from NMC reversed (again) the interpretation and policy cooperatively developed between OMSA and the Eighth District, which had been in force. Recommendations: OMSA has sent to the Coast Guard a detailed documentation of the workday of liftboat personnel and requested that they reconsider this recent policy change. Coast Guard Action: The Coast Guard has rescinded this policy and will continue to give liftboat operators 1 for 1 sea service credit, until a more effective, reasonable policy can be developed which takes into account the unique features of liftboat operations, without negatively impacting the career path of mariners on these vessels.

3. Issue: STCW: OSV Licenses - Master, Mate, Chief Engineer; OMSA has been working diligently with the NMC to finalize licensing requirements under the STCW convention for mariners aboard OSV's, and other small, similarly sized and equipped vessels. We are pleased that through hard work and the good faith cooperation between industry and the Coast Guard, courses have been approved to cover all domestic OSV operations. Impact: While we are pleased that the OMSA program is the only complete Cast Guard approved program leading to STCW certification for mariners whose service commenced after August 1, 1998, we are gravely concerned that the slow progress of Coast Guard review of our additional program submittals is creating a near crisis in our ability to prepare mariners for their future careers in the offshore industry. Comment: OMSA is proud to report the conceptual approval of our route extension program for Master, Mate and Chief Engineer (OSV), from Domestic Near-Coastal, to Oceans, and for upgrading the tonnage and service restriction on OSV licenses from 3000 to 6000 gross tons ITC. Then, the final task (before formal approval) will be to submit the details and guidance on how trainers on board our vessels will actually be expected to train the mariner candidates for the respective deck and engine room licenses. We hope to have all of this completed before October, and the Coast Guard approvals for all (STCW complaint) OSV licenses approved before our October meeting.

4. Issue: The Coast Guard Authorization Act of 1996 authorized the Coast Guard to develop, appropriate alternate convention tonnage as measured under 46 USC Chapter 143. To date the Coast Guard has only proscribed 3 equivalent alternate convention tonnages. Impact: The failure to assign alternate tonnages is/may cause the inappropriate application of U.S. domestic law and/or regulation to offshore supply vessels that are admeasured to international tonnage only. Comment: OMSA has a subcommittee developing a comprehensive list of over 1300 reference to tonnage in the regulations and will present a "straw man" to the Coast Guard for discussion. We have been in contact with the MSC project officer Peter Eareckson concerning our desire to work in concert on this issue. Recommendations: That the Coast Guard accept the OMSA "straw man" and assign a team to modify the recommendations (if desired) and publish them in the Federal register as appropriate. Coast Guard Action: The Coast Guard has agreed to accept the OMSA recommendations. The timetable for action is under consideration.

5. Issue: The ability of the Regional Examination Center (REC) to meet the needs of industry in regards to timeliness, quantity and accuracy of services rendered is not keeping pace with the needs of industry for those same services. Impact: The offshore vessel industry is experiencing a surge in vessel utilization and jobs. The impending deadline for compliance with the STCW convention has created an increasing need for REC services. The combination of the two has produced a need for REC services that is outstripping the ability of the Coast Guard to supply. The complexity of licensing activities associated with the new STCW requirements as created a situation where Coast Guard personnel are unable to keep track of the nuances license requirements. Comment: OMSA conducted a survey of expected licensing needs by OMSA members quantifying a workload greater than available resources. Our survey results are available for review. Communications and Scheduling Problems at REC New Orleans continue to plague mariners. Implementation of a more efficient telephonic and general response system at the REC New Orleans for setting licensing appointments, and issuance of merchant mariners documents, is critical. It should be noted that we have been working closely and will continue to work directly with MSO New Orleans, and the REC staff to resolve these problems. We have had several productive meetings on these subjects and have another scheduled. We are convinced of the REC's desire to work with us to resolve these problems to the extent that resources permit. Unfortunately, we are concerned that these problems can not be significantly ameliorated without assigning more people, or devising other acceptable, innovative means to add manpower. Recommendations: A significant shift in resources is needed to provide the licensing services required between now and February 1, 2002. It should be noted that the needs will not be evenly distributed, but will ramp up significantly as the deadline approaches. Coast Guard Action: The REC has recently updated its telephone system, with the status of resource issues still under consideration.

6. Issue: All vessel types except for OSV's have been authorized for underwater inspections in lieu of drydocking (UWILD). Impact: With the upturn in the offshore industry drydocking facilities have become more difficult to schedule. The exclusion of OSV's from UWILD removes another option from the vessel operators to comply and compete required inspections. The overall level of new construction and the dearth of drydock/shipyard capacity for inspection dictates that we must reexamine the Coast Guard's policy and means to accommodate underwater inspections for OSV's acceptable to the USCG. Comment: It is our belief that every reasonable requirement for compliance can be accommodated and that the policy should be amended to include OSV's. OMSA has submitted to the Eighth Coast Guard District a proposal for allowing OSV's to participate in this program in accordance with current policy for other vessel types. Recommendations: That the Coast Guard accepts OSV's into the UWILD program and that the appropriate amendments to the rulemaking currently in process are made to allow for UWILD by OSV's. Coast Guard Action: Under consideration.

7. Issue: Whether or not the requirements for a vessel to be securely moored for oil transfers is met by a properly functioning dynamic positioning system. Impact: As vessels move into deeper and deeper water the ability of conventional mooring systems to function properly is limited by its technology. Industry has developed new technologies for vessels to maintain their position relative to another vessel or an offshore facility. To replace ropes and lines industry has developed dynamic positioning systems that maintain a vessels position through the coordinated use of thrusters. Comment: We believe that a vessels relative position can be satisfactorily maintained through a dynamic positioning system. The Offshore Operators Committee, in consultation with OMSA has commissioned a technical paper on dynamic positioning for Coast Guard review. We have requested the Coast Guard reexamine its policy articulated recently regarding "dynamic positioning" in relation to the definition "securely moored". Such a determination, considering current technology and related determinations (viz. U.S. Customs), again, imposes ramifications that have extreme regulatory impact on offshore marine operations in deepwater. Recommendations: OMSA has submitted an initial letter to the Eighth District requesting their consideration of this issue. We believe that a policy should be enacted by the Coast Guard that acknowledges that a properly functioning dynamic positioning system is equivalent to the regulatory terms of anchored, moored and securely moored as it is the next technological evolution in vessel station keeping. Coast Guard Action: Under consideration.

8. Issue: The issue of crew fitness for duty is important to the Coast Guard and industry. Both the Coast Guard and industry desire to reduce mariner fitness for duty as an issue in vessel operations. Impact: OMSA objects to any regulatory and one size fits all approach to reducing fatigue in mariners. OMSA supports and encourages the Coast Guard approach as espoused by the Crew Alertness Campaign to reduce mariner fatigue. Comment: OMSA has invited LT Scott Calhoun and Dr. Carlos Comparatore to address and work with its members with respect to cooperation in the Coast Guard's Crew Alertness/Fatigue Avoidance study and training concept. Coast Guard personnel will be making a special presentation on July 24th and be available to discuss individual company participation in the program on July 25th. These Coast Guard program managers and researchers will be meeting with a group of OSV masters and mates on July 25th to learn the unique operations of OSVs. Recommendations: That OMSA members and the Coast Guard support our efforts by providing LT Calhoun and Dr. Comparatore adequate time to continue and complete any partnerships/programs that we initiate at the July training sessions in New Orleans. Coast Guard Action: The Coast Guard has agreed to include OMSA and the offshore industry in its Crew Alertness Campaign project.

Next on our STCW agenda will be to develop a program to remove the trade restriction from OSV to similarly sized and equipped special purpose vessels engaged in support of offshore mineral and oil operations.

Other issues discussed with the USCG, not elaborated on in detail here, but treated separately, were the 1) Dual Certification for OSV's and 2) Designated Duty Engineer (DDE) shortage.

We take this opportunity to give special thanks to RADM Paul Pluta, formerly the Commander of the Eighth District and, now, District Commander of Marine Safety and Environmental Protection, at USCG Headquarters in Washington, D.C., for promptly arranging a meeting between industry and USCG staff to allow both parties to introduce, clarify and develop their positions on these subjects with a view toward final resolution of these issues.

Also, we have discussed several issues particular to the Eighth District and the REC, New Orleans, with Capt. Dan Ryan and Capt Steve Rochon, respectively, and appreciate the attention and courtesies extended by these officers with respect to those matters. We expect to meet with RADM Casto as soon as his schedule permits.

These articles are intended as a summary of issues, for general information purposes only and are not intended to be a substitute for legal consultation with respect to any specific matter. For such opinion or advice, you should contact legal counsel. See your OMSA membership directory for the names of member firms.

Upwards of 50,000 federal contractors (or alleged federal contractors) have received "Equal Opportunity" surveys from the Office of Federal Contract Compliance Programs (OFCCP) since April of last year. For those employers curious about the consequences of a failure to reply to these surveys, the OFCCP has just announced that a Los Angeles company has been debarred from government contract eligibility for six months due to its failure to respond. Source: Client Letter, Volume LVI, No. 5, May 31, 2001

The Fair Labor Standards Act of 1938 ("FLSA"), better known as the federal wage and hour law, is on of the oldest federal employment statutes. The FLSA has not changed much over the years and is made up of a substantial number of highly technical rules that govern how employees are paid. For many employers, the FLSA is a sleeping dog that doesn't get much attention. Better to let the sleeping dog lie, as the old expression goes. Recently, however, this sleeping dog has been awakened by savvy employee attorneys and they've discovered a gold mine in the FLSA's many technical rules. How? What happened?

Two elements have contributed to the resurgence of activity under the FLSA. The first is an increase in productivity by the American workforce; more overtime hours are being logged by more employees than ever before. The second element is one of the oldest and most common of all employer mistakes: the misclassification of nonexempt jobs as exempt from overtime. Many employers labor (pardon the pun) under the misconception that if they pay an employee a salary, the employee doesn't get overtime. It's not that simple.

What makes wage and hour claims so attractive to employee attorneys is the fact that most wage and hour violations involve a policy or practice that applies to a whole class of workers at a company. The bigger the company, the bigger the pot of gold at the end of the FLSA rainbow.

• Swift and Co. paid nearly $3 million in settlement for failing to pay workers for time spent donning, doffing, and cleaning protective safety gear.
• Albertson's settled a class action involving 150,000 employees and former employees for an estimated $37 million for "off-the-clock" work for which the employees were not compensated.
• Employees of Oklahoma Gas and Electric Co., who were required to be on call to continually monitor automated alarms, won their suit for overtime pay.
• Over 100 managers of a hamburger chain in California, who say they worked 50 to 70 hours per week, filed suit for overtime pay, claiming they were misclassified as exempt.

Many employers are now conducting annual wage and hour audits to avoid or reduce the risk of these kinds of claims. Focus areas in your audit should include:

• The correct classification of supervisors, managers, administrators, computer workers, technicians, professionals, and independent contractors as exempt or nonexempt.
• Effective systems for recording the actual hours worked by nonexempt employees, including overtime.
• Permissible pay deductions.
• Special pay plans and bonus programs.
• Compliance with record-keeping requirements.

Source: Jones Walker, The Labor & Employment Tip Sheet, May 2001

In a landmark decision overturning 50 years of legal precedent, the National Labor Relations Board adopted tightened standards for employers to legally withdraw recognition of incumbent unions but also adopted a more lenient standard for employers to obtain decertification elections. In overturning one of its own rulings from 1951, the Board found "compelling legal and policy reasons why employers should not be allowed to withdraw union recognition merely because they harbor uncertainty or even disbelief concerning unions' majority status." Instead, "an employer may unilaterally withdraw recognition from an incumbent union only where the union has actually lost the support of the majority of the bargaining unit employees." (Emphasis added.) The Board acknowledged that an employer can still withdraw recognition if the employees present evidence that a majority no longer supports the union but went on the say: "We emphasize that an employer with objective evidence that the union has lost majority support - for example, a petition signed by a majority of the employees in the bargaining unit -withdraws recognition at its peril. If the union contests the withdrawal of recognition in an unfair labor practice proceeding, the employer will have to prove by a preponderance of the evidence that the union had in fact lost majority support at the time the employer withdrew recognition." Emphasizing that elections conducted by the Board are the "preferred way to resolve questions regarding employees' support for unions," the Board made it easier for employers to obtain a decertification election. Employers now need only to demonstrate "reasonable good-faith uncertainty as to incumbent unions' continued majority status." For the first time, the standard for employer-filed decertification petitions will no longer be the same as for employer withdrawals of recognition.

Source: Client Letter, Volume LVI No. 4, April 30, 2001, The Kullman Firm

U.S. Fifth Circuit affirms maintenance award that includes mortgage expenses, and develops three-part test for maintenance awards when evidence of actual costs not provided by plaintiff seaman.

In Hall v. Noble Drilling, (U.S.) Inc., 2001 WL 125326 (5th Cir. 2001) after accepting evidence provided by plaintiffs of their actual daily maintenance expenses, including food and mortgage costs for a house shared with their families, the trial court awarded one plaintiff $30.50 per day and the other $31.50 per day. Defendant appealed, arguing that all the costs, including the mortgage, should be based on the seaman's prorated share of his living expenses. The Fifth Circuit agreed that a seaman may only present evidence of expenditures on food eaten by himself, and that if