Market Overview

Liberty Maritime Corporation Announces Change in Union Affiliation


Liberty Maritime Corporation (Liberty Maritime) of Lake Success, New York today announced that it has entered into a new collective bargaining agreement with the American Maritime Officers (AMO) union under which the AMO will provide U.S. citizen licensed deck officers and engineers to Liberty Maritime for the operation of five U.S.-flag dry bulk carriers effective October 1, 2011. Those vessels had previously been subject to a collective bargaining agreement between Liberty Maritime and the Marine Engineers Beneficial Association, District No. 1-PCD (MEBA), which expired September 30, 2011. The MEBA will continue to provide deck officers and engineers on the three U.S.-flag Pure Car/Truck Carrier vessels (PCTCs) operated by Liberty pursuant to a separate collective bargaining agreement between Liberty Maritime and the MEBA.

Mr. Philip J. Shapiro, President and CEO of Liberty Maritime, said: “We worked many months with the MEBA to try to reach a new agreement, and as late as three days before the prior agreement was due to expire, the MEBA called to say the Union was not interested in our proposal. Although we are saddened that we could not work out a mutually beneficial arrangement with the MEBA, we remain proud of our long and productive relationship with the Union and salute the professionalism of its members.”

Mr. Thomas F. Keenan, Executive Vice President of Marine Operations for Liberty Maritime, added: “Contrary to what MEBA has publicly asserted, we offered increases in wages and in contributions to MEBA's defined contribution retirement plan in exchange for freezing their defined benefit retirement plan. We remain convinced that their members would have been better off under our proposal than the Union's proposal. For the record, at no time has Liberty Maritime ever sought to “lock out” MEBA members. We proposed pay increases, but in the end, we did not reach agreement because we simply could not bridge our economic and other differences prior to the expiration of the existing contract.” Regarding Liberty Maritime's new AMO union affiliation, Mr. Keenan said: “We are all impressed with the smooth transition that has taken place with our new AMO represented officers.”

Mr. Shapiro added: “We are delighted that so many of our prior MEBA represented officers have contacted the Company seeking opportunities to continue working aboard the vessels that Liberty Maritime operates.” Mr. Shapiro concluded: “We are looking forward to a long and productive relationship with the AMO and to continue working with the MEBA on our PCTCs.”

Mr. William G. Miossi, labor counsel to Liberty Maritime, explained: “The MEBA represented officers are supervisors, and as such they are not covered by the National Labor Relations Act. Although Liberty Maritime had no legal obligation to bargain with this Union upon expiration of their contract, we nevertheless negotiated with the MEBA in a sincere effort to reach new terms.” Mr. Miossi added: “It is our view that the MEBA's picketing of Liberty Maritime operated vessels and other actions violate federal labor law. Consequently, today we have filed appropriate Unfair Labor Practice Charges against the MEBA with the National Labor Relations Board to deal with these issues.”

Liberty Maritime Corporation, established in 1988, is an independent operator of ocean going vessels for various ship owners. Its current operated U.S. flag fleet consists of eight vessels including two 64,000 DWT Panamax bulk carriers, three 52,000 DWT Supramax bulk carriers and three modern 6500 unit Pure Car Truck Carriers (PCTCs). Liberty has extensive experience operating a diversified fleet of vessels including, but not limited to Roll On/Roll Off ships, dry bulk carriers, PCTCs, tankers, container ships, ammunition carriers as well as military sustainment and pre-positioning ships. Headquartered in Lake Success, New York, Liberty Maritime has developed an international reputation as an outstanding vessel operator and manager.

Liberty Maritime Corporation
Bill Miossi, 202-282-5708

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