AFL-CIO Asks for Coast Guard / Congressional Ruling on Aker Shipyard

Alleged non-compliance with aspects of the Jones Act at a Philadelphia shipyard has prompted the AFL-CIO Metal Trades Department (MTD) to urge an investigation into the partnership between Aker Shipyard in Philadelphia and South Korea's Hyundai Mipo Dockyard. The focus of the complaint centers on whether a series of ten product tankers will comply with U.S. Law. The Jones Act requires that cargo being transported between U.S. ports be carried on U.S. flag vessels, which been built in the U.S. and are owned and manned by U.S. citizens.

MTD also pointed out that Aker Shipyard is importing prefabricated steel bulbous bows and stern tubes directly from Hyundai. In addition, Aker is also said to be importing pre-assembled equipment modules and other components from HMD and other South Korean companies. All of this material will be used in the construction of tankers that are to be introduced to the domestic, Jones Act market. AFL-CIO MTD officials have further alleged that a vessel now under construction at Aker is no more than a pre-fabricated South Korean 'Kit' ship. The MTD has contacted the US Coast Guard and some members of Congress to investigate.

Leaders of the Philadelphia Metal Trades Council also say that the yard has brought in foreign shipyard workers for the purpose of training U.S. workers in how to bolt and weld together the imported, pre-fabricated parts. In reality, says the trade union, these foreign workers are working independently of the domestic workers on various stages of the project.

Aker's forerunner, Kvaerner Shipbuilding, was granted subsidies worth over $500 million to bring commercial shipbuilding back to the Philadelphia region. The agreement also stipulates a $1 per-year lease on the old Philadelphia shipyard grounds. Under the terms of that deal, the company agreed to rehire shipyard workers laid off from the closed Navy Shipyard and to set up apprenticeship programs to train local workers.