Attachment IX(B)(1) MOU 8-3-2020 TLC Increase.pdf

Patriot Contract Services, LLC

SLNC PAX

August 3, 2020

TLC Increase

MEMORANDUM OF UNDERSTANDING

Between

And

Seafarers International Union of North America –

Atlantic, Gulf, Lakes and Inland Waters, AFL-CIO

WHEREAS, Patriot Contract Services, LLC (hereinafter referred to as “Company”) and the

Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters, AFL-

CIO (hereinafter as “Union”), have an existing agreement (hereinafter “Agreement”) pursuant to the Company’s successful offer in response to Military Sealift Command’s Request For Proposal

N00033-19-R-3504 for the operation and maintenance of one shallow-draft tanker vessel; and

WHEREAS, the Company operates the SLNC PAX as the chartered vessel; and

WHEREAS, the Agreement provides for a three percent (3%) Total Labor Cost Increase (TLC) which shall include base wages, overtime rates, fringe benefits and taxes, but shall not include transportation victualling nor protection and indemnity insurance effective the first contract anniversary, August 3, 2020.

NOW THEREFORE, with the aforementioned in mind, the parties hereby agree and memorialize increased economic matters pursuant to the scheduled TLC as provided for in Appendices A-2, A-

3 and A-4, hereto attached.

Any item not specifically modified herein shall remain in full force and effect.

Patriot Contract Services, LLC.: Seafarers International Union of North America –

Atlantic, Gulf, Lakes and Inland Waters, AFL-CIO:

By:_____________________________________

Dated:_______________________ 09/18/2020

By:______________________________

Dated:__3/24/21__________________

SLNC PAX

APPENDIX A-2 Monetary Matters

SIU-AGLIW/Patriot Contract Services

MSC RFP N32205-19-R-3504

TANKER CHARTER – FAR EAST

Vsls: SLNC PAX

Effective: 8-3-2020

FULL OPERATIONAL/REPAIR AVAILABILITY/ PRE DELIVERY STATUS’

Section 1. Wages

The following wages shall apply during Full Operational Status (FOS), Repair

Availability Status (RAV) and Pre Delivery periods of employment under this contract.

Wages for Unlicensed Personnel shall be paid on a day for day basis regardless of the type of voyage the vessel is employed on.

Rating Monthly

Base

Wage

Overtime

Rate

Excess of

(8) M-F &

On Watch

S,S&H

Hourly

Penalty

Rate

On-Watch

M-F

Hourly

Penalty

Rate

Off-Watch

M-F

Steward Baker 5758.17 36.27 14.64 36.27

Chief Cook 4528.09 30.82 11.51 30.82

Steward Assistant 2889.97 19.42 8.88 19.42

A. Hourly Overtime Rates (FOS/RAV/PD) - Except as otherwise provided, the rates set forth above shall be paid for all work in excess of eight (8) hours Monday through

Friday and anytime Saturdays, Sundays or Holidays.

SLNC PAX

B. Hourly Penalty Rates

In accordance with Article II, Section 35 Waivers, Paragraph (e.) all penalties not provided for in this agreement shall be deemed waived. The penalty rates set forth above shall be paid for such work as specified below.

A. Using Spray Guns and Sand Blasting Equipment

B. Longshore work

C. Restriction to Ship

D. Penalty Cargos

E. Removing soot from stack

F. Cleaning Bilges and oil spills

G. Steering Engine Room and Bow thruster room

H. Tank Cleaning

SLNC PAX

APPENDIX A-3 Monetary Matters

REDUCED OPERATIONAL STATUS

Section 2. Routine Hours – (ROS)

A. Steward Department. The routine work week for the Steward Department Personnel while the vessel is in ROS shall be Monday through Friday.

Section 3. Economic Conditions (ROS)

The following wages shall apply during all reduced operation tempo (ROS) periods of employment under this contract.

Far East Time Charter (ROS)

Rating Weekly

Rate

Overtime

Rate

Steward Baker 1679.47 45.33

Chief Cook 1320.70 38.52

Steward Assistant 842.91 24.27

A. ROS Overtime Rates

For all work performed in excess of eight (8) hours Monday through Friday, and for all hours worked on Saturdays, Sundays and Holidays, Unlicensed Personnel shall be compensated at the Overtime Rate shown above. ROS crewmembers shall comply with Company rules regarding overtime authorization.

SLNC PAX

B. ROS Holiday Pay

During periods of ROS, Unlicensed Personnel shall receive a day’s pay for each designated holiday occurring during their assignment period.

C. Compensation (Routine Work Week)

ROS/Pre-Delivery Unlicensed personnel who work five (5) routine days during the routine work week, and the vessel remains in ROS/Pre-Delivery over the subsequent weekend, shall be paid the weekly rate. When Unlicensed crew members in ROS/Pre-Delivery are turned to on Saturday or

Sunday they shall be compensated for all hours worked at the applicable overtime rate in addition to their rate. Weekly wages shall be divided by seven (7) when determining wages for Unlicensed personnel who work less than a full week.

D. Fringe Benefit Calculations

During periods of Reduced Operating Status and Pre-Delivery contributions to fringe benefit plans shall be calculated on a seven (7) day per week basis. For the purpose of computing wage related fringe benefits, the weekly wage shall be divided by seven (7) in order to provide a daily wage.

Weekly contributions shall be divided by seven (7) when determining contributions for Unlicensed

Crewmembers working less than a full week.

SLNC PAX

APPENDIX A-4 Monetary Matters

SEAFARERS TRUST FUND BENEFIT COVERAGE LEVELS

It is agreed that the Company will become and remain a party to the Seafarers Health and

Benefits Plan, Seafarers Pension Plan, SIU – Pacific District Supplemental Benefit Plan (Vacation

Benefit), Seafarers Harry Lundeberg School of Seamanship, Seafarers Joint Employment Fund and the Seafarers Money Purchase Pension Plan, and further agrees to assign the appropriate

Agreement and Declaration of Trust for the aforementioned Plans and Entities.

Eligible Unlicensed personnel shall be provided Seafarers Benefit Plan benefits at the following benefit levels.

A. Seafarers Health and Benefit Plan

Eligible Unlicensed Personnel with the appropriate eligibility will receive Seafarers Health and Benefit Plan medical benefits at the Core Plus Plan Level.

B. Seafarers Harry Lundeberg School of Seamanship

Eligible Unlicensed Personnel with the appropriate eligibility requirements will receive various training and upgrading programs provided at the Seafarers Harry Lundeberg School of Seamanship.

C. Seafarers Money Purchase Plan

Eligible Unlicensed Personnel will receive Money Purchase benefits at the rate of five percent

(5%) of the applicable vessel status daily base wage, per man per day.

SLNC PAX

SIU Pacific District Supplemental Benefit Plan (Vacation Benefit)

Tanker Charters – Far East

A. FOS - During periods of Full Operational Status, Repair Availability Status and

Pre Delivery eligible Unlicensed Personnel shall be entitled to an SIU-Pacific

District Supplemental Benefit equivalent to sixteen days (16) days vacation pay for each thirty (30) days employed in accordance with the rules and regulations of the Plan.

Furthermore, during their course of employment, eligible Unlicensed Personnel shall be entitled to Completed Tour of Duty Bonus for the completion of assigned tours of duty without injury or illness. The Bonus shall have an accrual of one (1) day for each thirty (30) days employed and shall be administered by the Plan in accordance with the Plan’s rules and regulations.

B. ROS - During periods of Reduced Operational Status, eligible Unlicensed personnel shall receive a vacation benefit of one and one-half (1.5) days vacation pay. This benefit shall be administered by the Company.

SLNC PAX

ADDENDUM A

“CONFIDENTIAL”

SEAFARERS BENEFIT PLAN TRUST FUND COMPANY CONTRIBUTION RATES

Section 2. Full Operational Status, Repair Availability and Pre Delivery Status

For each man day employed by the Unlicensed Personnel during Full Operational Status, Repair

Availability and Pre Delivery status periods, the Company shall contribute the amounts specified herein to the various Trust Funds. The Company agrees to become and remain party to the various

Trust Funds and TI Fund.

Except as may be otherwise provided, all benefit contributions shall be made on a day for day basis. When a vessel is in FOS such contributions shall be made on the well-established practice of monthly payments within the Rules and Regulations of the various benefit plans.

On the first day of routine a relief, fringe benefit contributions shall be payable on behalf of the departing unlicensed seaman. For all relief or overlap periods that extend beyond one (1) calendar day, fringe benefit contributions shall be required for both unlicensed seaman.

Tanker Charter

Far East FOS FOS Daily Per Man

Aggregate Contribution Rate

Seafarers Health and Benefits Plans*

$135.22

*Inclusive of multi-employer labor/management benefit plans; Seafarers Heath and Benefits Plan

(Welfare, Drug Testing), Seafarers Pension Plan, Seafarers Harry Lundeberg School of Seamship

(Training), Seafarers Joint Employment Fund (Hiring Hall) and the Transportation Institute.

SLNC PAX

Seafarers Money Purchase Pension

Plan

5% of the applicable FOS operational daily base wage

SIU Pacific District Supplemental

Benefit Plan (Vacation Benefit)

The Supplemental Benefit shall be computed on the basis of sixteen (16) days vacation pay for each thirty (30) days worked or pro rata thereof at each rating’s respective FOS Daily

Base Rate. The contribution rate shall be fifty-eight percent (58%) of the respective FOS Daily Base

Wage. In addition there shall be a 1-day/30 days worked Completed Tour of Duty Bonus at the contribution rate of four percent (4%).

Section 3. Reduced Operational Status

The following contribution rates shall be made to the various Trust Funds during all phases of

ROS on a weekly basis for any crewmember employed Monday through Friday and the vessel remains in ROS status over the subsequent weekend. The weekly contribution rates shall be divided by seven when determining daily contribution amounts for unlicensed crewmembers who work less than a full week.

When determining daily wage rates for the purpose of trust fund contributions, weekly wages shall be divided by seven for unlicensed crewmembers who work less than a full week. However, when employed Monday through Friday and the vessel remains in ROS throughout the subsequent weekend trust fund contributions shall be made on no less than the weekly wage.

Tanker Charter

Far East ROS ROS Weekly Per Man

Aggregate Contribution Rate

(Applicable to TLC Increases)

Seafarers Health and Benefits Plans*

$946.53

*Inclusive of multi-employer labor/management benefit plans; Seafarers Heath and

Benefits Plan (Welfare, Drug Testing), Seafarers Pension Plan, Seafarers Harry

Lundeberg School of Seamship (Training), Seafarers Joint Employment Fund

(Hiring Hall) and the Transportation Institute.

SLNC PAX

The Company shall make the following per man, per day contributions to the Seafarers Benefits Plan as prescribed within this Agreement.

It is hereby agreed between the Company and the Union that the Trustees of the above mentioned

Trust Funds, upon recommendation of the Trust’s/Plan’s chief fiscal officer, shall have an absolute right to reallocate the contributions payable to any of the Funds. Notice of such allocation shall be given to all Companies, and payments of contributions in accordance with such allocation formula shall be made, effective as of the date provided in such notice.

Sick Leve – Federal Contractors

Pursuant to MSC Solicitation’s applicable DOL wage determination for this procurement/resultant contract, WD 2010-0147 Revision 07, in which sick leave requirements are established, should those conditions present themselves during ship operations under this Agreement all applicable law shall be adhered to.

Patriot Contract Services, LLC: Seafarers International Union -

Atlantic, Gulf, Lakes and Inland Waters, AFL-CIO:

George J. Tricker

Vice President in Charge of Contracts and

Contract Enforcement

Seafarers Money Purchase Pension

Plan

5% of the applicable ROS daily base wage.

Vacation Benefit Unlicensed personnel shall be entitled to a vacation benefit equivalent to one and one-half (1.5) days vacation pay for each thirty (30) days employed. This benefit shall be administered by the

Company.

Dated:__3/24/21________________