Attachment_E_SIU_letter.pdf

AFFILIATED WITH THE SEAFARERS INTERNATIONAL UNION OF NORTH AMERICA • AFL-CIO

SEAFARERS INTERNATIONAL UNION

ATLANTIC • GULF • LAKES A D INLAND WATERS

5201 AUTH WAY • CAMP SPRINGS, MARYLAND 207464275 • (301) 899-0675

Mr. Edward Hanley Vice President, Labor Relations Maersk Line, Limited 1881 Campus Commons Drive Suite 450 Reston, VA 20191

August 26, 2016

Re: Military Sealift Command Contract Awarded Pursuant to MSC Solicitation N00033-11-R-5400

Vessel: U.S.-flagged, Ice-Class Tanker- Maersk Peary

Dear Mr. Hanley:

MICHAEL SACCO

PRESIDENT

AUGUSTIN TELLEZ

EXECUTIVE VICE PRESIDENT

DAVID HEINDEL

SECRETARY-TREASURER

GEORGE TRICKER

VICE PRESIDENT

JOSEPH T. SORESI

VICE PRESIDENT

DEAN CORGEY

VICE PRESIDENT

NICHOLAS J. MARRONE

VICE PRESIDENT

TOM ORZECHOWSKI

VICE PRESIDENT

KERMETT MANGRAM

VICE PRESIDENT

JOHN SPADARO

UIW NATIONAL DIRECTOR

As requested, the purpose of this letter is to provide and confirm aggregate fringe benefit plan contributions made on behalf of Unlicensed personnel by Maersk Line, Limited for release to the U.S. Military Sealift Command for use and connection to in future procurements.

The information contained herein reflects "fringe benefit" labor cost information pursuant to the above subject MSC RFP (resultant contact). This information combined with the SIU/Maersk Line, Limited agreement dated 9/14/2011 and wage information contained in our December, 2015 and December 2016 Total Labor Cost Increase Memoranda of Understanding will provide a complete SIU/Maersk Line, Limited labor package for release to the Military Sealift Command.

This letter shall confirm that since December 10, 2015, Maersk Line, Limited has contributed per billet contributions to the Seafarers Health and Benefits Plan (Medical Fund), Seafarers Harry Lundeberg School of Seamanship (Training Fund), Seafarers Joint Employment Fund (Operating Fund); collectively the "Seafarers Benefit Plan's Trust Funds"* and Seafarers Money Purchase Pension Plan and Seafarers Vacation Plan (Vacation) as follows:

FAX (301) 899-7355

Mr. Edward Hanley Maersk Line, Limited Page Two August 26, 2016

Maersk Peary Seafarers International Union ofN.A-AGLIW /Maersk Line. Limited

Aggregate Fringe Benefit Contributions

Effective: December 10,2015

Effective December 10, 2015 during all periods of employment, for each man day employed, the following contribution rates were paid to the designated Trusts by the Company.

A. Seafarers Benefit Plans Trust Funds

Effective December 10,2015 $134.85

B. Seafarers Money Purchase Pension Plan

Effective December 10, 2015, the Company has made daily contribution to the Seafarers Money Purchase Pension Plan in the sum ofFive Percent (5%) of the respective daily base wage per man. The respective daily base wage shall be the monthly base benefit wage divided by thirty.

C. Seafarers Vacation Plan

Effective December 10, 2015, in order to pay the defined vacation benefit of fifteen (15) days for each thirty (30), the Company has contributed fifty-eight percent (58%) of the respective daily base wage, or pro rata thereof, to the Seafarers Vacation Plan. The respective daily base benefit wage shall be the monthly base benefit wage divided by thirty.

Page Three August 26, 2016

Maersk Peary Seafarers International Union of N.A-AGLIW /Maersk Line. Limited

Aggregate Fringe Benefit Contributions

Effective: December 10, 2016

Effective December 10, 2016, pursuant to the Parties collective bargaining agreement, addenda and/or memorandums, during all periods of employment, for each man day employed, Maersk Line, Limited shall make the following contributions at the rates prescribed below to the designated Trusts by the Company.

A. Seafarers Benefit Plans Trust Funds

Effective December 10, 2016 $138.90

B. Seafarers Money Purchase Pension Plan

Effective December 10, 2016, the Company has made daily contribution to the Seafarers Money Purchase Pension Plan in the sum ofFive Percent (5%) of the respective daily base wage per man. The respective daily base wage shall be the monthly base benefit wage divided by thirty.

C. Seafarers Vacation Plan

Effective December 10, 2016, in order to pay the defined vacation benefit of fifteen (15) days for each thirty (30), the Company has contributed fifty-eight percent (58%) of the respective daily base wage, or pro rata thereof, to the Seafarers Vacation Plan. The respective daily base benefit wage shall be the monthly base benefit wage divided by thirty.

Page Four August 26, 20 16

Should you require additional information, please do not hesitate to contact my office.

Very truly yours, _lj

Vice President In Charge of Contracts and

Contract Enforcement

Enclosures: 9114/2011 SIU/Maersk CBA- Maersk Peary

12110/2015 SIU Economic MOU

12/10/2016 SIU Economic MOU & Aggregate Fringe Benefit Rates

GT:dms

:\1E�10RA�Dl \1 OF l": '\DERSTA�DI � G

Between

�aersk Lin� Limited

And

�cafartr International l nion of"ortb Am erica . A(,LJ\\tD. AFL-CIO

-;\Jaersk l'ea�-

'A HERr AS. thl! Sc:J.fare� JntematJonal t ·ni()n of '\onh America ·\tlanttc. Gulf. Lakes and Inland \\ ater�. Af L -C I O 'h1!reina1ter rderred ln a ··t'nion .. ) and \1a1.-rsk Lint". Limited.

dierematier ret�rred to a-.·· C\1mptm� . . ,. 1t" s s u c�.:essor� and a�s•gns ha\ �: an existing Ag.recm c>nt pur-•uam to �lilit.ar'} ��a l 1 11 Command I \ 1 SC> (ontrdct '00033-11-C-5400 tor th� ,)pt":CitJ,)n and mantenan..::c OJ one t 1 l ke Clas-s I anJ....:r. the Jfaersl. Peary; <.md

WHJ RL\:-.. the Ag.n:ement �all� lor a three percent (3°'ol l otal Labor Cost increase each ann!\ er�an of the initial dr:! j, '-T) dak vf the Vlaersl- Pea� under the M SC Contra�.:t: and

'A HERL:\S. :h.: ·1 uta! LaboJ C o�t im:reuse hall mclud.: base \\ages. O\ertime rates. fringe bendit cClntn['\utions and tax\!�. hm sr.all no1 incl ude transportation, 'ictualling and l'&l 1nsurancr.:: .

. O"A Tl H RfrORl. \� ith th� at�m:mcntioned in m1nd. the f'anil.'!:l \\ish to memorialize thl:' aforernemi,med ..:h�duh.:d 1 otal Labor ( ost bcrcase. as rctlectt:d in Appendix "A'' herew attached. -:ffi:cth e Dccemhcr l 0. �0 15 a:> fuJJ,m s.

Datl.'d:

·1aersk Line. L imi: •d:

'.:.H ..... � \.

�l!afarers lntcrn:llional l nion or �orth Am�rica. Atlantic. Gulf. Lakes and Inland\\ aters . . \I L-(10:

\PPE. ·n1X "A ..

:'\ lacrsk Line. Limited - \1acrsk Pea�

�00033-11-C -5400 Wages and �eafarers Benefit Plan� Co\enge Le\'eb

Efftcthe: December 10,2815

A. \1ontht� Ba�e \\age

:\B Gr..:cP .-\.B Blue --

1 Mvnthl)

Wag.: _

4215.02

3104.53 2759.60 2578.23

Urdinar� 'X'�unan 2531 88

Q\11.[) P1...mpm::m 4215.02

Q\1[ Cia�� ---- Cia -.2 Cla�� _

Cia�s4 ucnercl \ �s�d . \ .. isL 'tev.ard Baker

I ChiefCll('l.l,.

General ·tev.ard l."tilit�

B. Pr�mium Rate.

Rating

4215.02

3871.87

3528.93-{ 3186.02 2531.88

2531.88

4215.02

3294.10

. 2115.75

H�.1url} Premium

Rat e

Bosun 30.44

I :\B l\1aintcnancc i

30.44 I

AB G een ABtBiue Ordinary 't:aman

'I.:Lu.n<K PU1'!- 3'',, ]1.( )., .. ;;,l•·r I( l{l]lj

19.92 18.63 18.27

()�1!:0 Pumpman 30.44

Q�1FD

Cia� 1 30.44

Class 2 27.96

' Class 3 25.48

Cbs!>4 23.03

Wip\:r 18.27

Gc-:1�ral \" c:>� l :\ ::.si:-t. 18.27 tev. an.i Bak�: r 30.44

( h"efCook. 23.n

G�nc-ra• :-,h;\�dfd L tilit� 15.27

C. 0\"errime Rath

Raung Houri� (hcrimc

Rate

Bv�-..n

.\B \1aintC'nan..:c

. \H (;recn

AB Blue

Ordinru·: �.:aman

16.64

16.64

12.74

12.74

10.10

�-(.:....)_\ 1_E _D_P _u_m_!.r_m_a_n _____ l6.64

1 Q\1.l:.D 0.()() ·•

Cbs� 1 c:as�:!

Class 3

( !a�..,4

\\ iper

G�neral \' e-.!>d Ass: stan I

• f ;r

16.64

16.64

16.64

16.64

10.10

10.10

16.64

16.64

D. Penalt� Rates

On H uTch \iondu.\ Frida_1 Hourly Rate

G roup 1 11.63 i ( i ro� 2----------- --8-. 90---1

(jroup 3 7.08

1 UfJ U aiL h \fwu.h�i - FriJ..r.\ I

Gro pI I Gn:"\up 2

Hourly Rate:

18.23 I

15.99

13.20 Groi.:p3 --------

On I1 uhh ·uiiii'J�i_l .\·unda.i & HouJun

Group J Group 1 Group 3

E. Riding Gang

Group

Group I urour )

30.44 21.51

18.27

Daly \\ace

170.94 128.55

.4 ny a em no I .'pt:oficullr modi Tied haein !.hall r&?mwn infu/l force and e_f]ect.

\1aer!>k 1 Jnc. L1:mteJ: �eatarers 1ntcmational Lnion of 1'\orth America. Atlantic, Gulf. Lake and 1land Wah:r . :\FL-C 0:

... -- I. : l.\. b \.

MEMORANDUM OF UNDERSTANDING

Between

Maersk Line, Limited

And

Seafarers International Union of North America, AGLIWD, AFL-CIO

"Maersk Peary"

WHEREAS, the Seafarers International Union of North America, Atlantic, Gulf. Lakes and Inland Waters, AFL-CIO (hereinafter referred to as "Union") and Maersk Line, Limited, (hereinafter referred to as·· Company"), it's successors and assigns have an existing Agreement pursuant to Military Sealift Command (MSC) Contract N00033-11-C-5400 for the operation and maintenance of one (1) Ice Class Tanker, the Maersk Peary; and

WHEREAS, the Agreement calls for a three percent (3%) Total Labor Cost increase each anniversary of the initial delivery date of the Maersk Peary under the MSC Contract; and

WHEREAS, the Total Labor Cost increase shall include base wages, overtime rates. fringe benefit contributions and taxes. but shall not include transp01tation. victualling and P&I insurance.

NOW THEREFORE, with the aforementioned in mind, the Parties wish to memorialize the aforementioned scheduled Total Labor Cost Increase, as reflected in Appendix .. A" hereto attached, effective December 10. 2016 as follows.

Any item not specifically mod{fied herein shall remain infullforce and e.ffect.

Dated: f / Jo /J.c 1'

Maersk Line, Limited:

.\lacr�k !'carY

3":o Tl.C

10 DJo:C: 2016

Seafarers International Union of North America, Atlantic, Gulf. Lakes and � Waters. AFL-C!O:

APPENDIX "A"

Maersk Line, Limited - Maersk Peary

N00033-11-C-5400 Wages and Seafarers Benefit Plans Coverage Le\•els

Effective: 10 DEC 2016

A. Monthly Base Wage

I Rating Monthly Wage

HourlyPremium Ov,ertime Rate

Rate '------- - . -- -�--J

1 Bosun 31.35

1 AB Maintenance 31035 j [ AB/Green 20o?_?_)

AB/Blue 19o19 I

Ordinary Seaman 18o82 .

QMED/Pumpman 31.35

. QMED

Class 1 4341.47 17ol4 1 I Class 2 3988003

701� I I

Class 3 3634o80 17o14

Class 4 3281.60

17o14 I -�iper

General Vessel Assist.

Steward/Baker Chief Cook

. 2607 084 10.40 t

2607.84 10040

4341.47 ' 17o14

3392092 17o14

31o35

28o80

26024

23.72

18082

18082

31035

24048 0 0 General Steward Utthty 2179022 I 10.40 I 15.73 J

B. Penalty Rates

Group

Group 1 Group 2

Hourlv Rate On Watch

Mon-Fri 11o98

9o17

7029 Group 3 ---'------ -- o ---

.\lacr�k l'<·arl'

3%TI.I'

10 DFC :!016

Hourly Rate Off Watch

Mon-Fri 18078

16047

13060

Hourly Rate l On Watch I S_a t� Sun & Hol

I 31o35

22o16 18o82

C. Riding Gang

Group Daily ----------------------�-Wage

_G_ r _o-up

I- -R-at ed _____ T 176.07

Group II - Entry 1 132.41

Any item not spec{fical/y modified herein shall remain injiJI!fhrce and e.ffecf.

Maersk Line, Limited:

\la�r>k Peary

3% TJ .C

10 DEC 2016

Seafarers International Union of North America. Atlantic, Gulf, Lu ·�.::�

<�inland Waters, :'j'CIO:

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