American Offshore Worker Fairness Act introduced in Senate and House of Representatives

Republican Bill Cassidy introduced on February 17 the American Offshore Worker Fairness Act in the US Senate. Republican Garret Graves and Democrat John Garamendi have co-sponsored the bill in the House of Representatives. The bill is designed to provide a “level playing field,” said Cassidy in a statement, between US-flagged vessels and foreign-flagged vessels working in offshore energy activities in US waters. It would also increase the oversight of foreign-flagged vessels and the mariners who work on those vessels.

American mariners and maritime companies “lose when foreign vessels, which do not pay US taxes, business taxes or payroll taxes, take advantage of loopholes to hire foreign workers for half the cost,” said Cassidy.

“Our bipartisan bill closes an egregious Jones Act loophole,” said Garamendi, “so that foreign-flagged vessels are held to the same high standards as US-flagged vessels developing our nation’s offshore energy resources, including for offshore wind projects.”

Current law requires that all vessels, rigs, platforms or other offshore structures be manned by US citizens or lawful permanent residents, but includes an exemption for offshore activities, allowing vessels that are more than 50% foreign-owned to operate in US waters with foreign crews. The exemption was included to eliminate potential retaliation by foreign nations against American workers in foreign offshore activities.

In practice, the exemption has created a loophole, noted Cassidy, that “allows foreign vessels from some of the wealthiest countries in the world to utilise mariners not from their home or flag nation, but from low-wage nations.”

“Foreign mariners are often paid 14 to 70 percent less than their US counterparts,” said Cassidy.

“Because foreign mariners are not subject to US tax and labour laws, foreign vessels owners are able to leverage the cost savings derived to undercut the charter rates of similar US vessels.”

The act would require mariners on foreign-flagged vessels to be either US citizens or citizens of the nation where the vessel is flagged, and require the US Coast Guard to inspect those vessels annually to ensure compliance with this law.