Airline Globalization on Steroids

[Overspeed]

This sounds like the ultimate union busting scheme.
 
"A perfect example is the operating scheme of Norwegian Air Shuttle (NAS), a European Union (EU) carrier. NAS, incorporated in Norway, and holding its air operators certificate (AOC) there, has registered its Boeing 787 aircraft in Ireland and wants to obtain an Ireland-issued AOC. The airline will use Thailand-based pilots on individual employment contracts governed by Singaporean law to staff 787 flights. The cockpit crew will not be employed directly by NAS but by a pilot recruitment company that will “rent” them to NAS. A similar arrangement apparently will apply to NAS's 787 flight attendants. If this isn’t globalization on steroids, what is?"
 
http://www.aviationweek.com/Article.aspx?id=/article-xml/avd_12_17_2013_p06-01-647548.xml

 

[MetalMover]

Of course.....there are always loopholes in many a law....Looking for ways to cut labor costs is a worldwide goal.
Where there's a will, there's a way.

 

[Overspeed]

Of course.....there are always loopholes in many a law....Looking for ways to cut labor costs is a worldwide goal.
Where there's a will, there's a way.

 
Sad but true. If this goes through what's next? AA filing for operating certificates for new aircraft in Ireland and hiring foreigners at low wages to fly them?

 

[WorldTraveler]

ALPA came out strongly against this.... all other unions as well as US airlines need to make sure this is not allowed to happen.

 

[Force Majeure]

Sounds like the cruise ship industry practice.

 

[MCI transplant]

Ain't Deregulation great????

 

[jimntx]

Sounds like the cruise ship industry practice.

I was just about to say. The cruise lines have done this for as long as I can remember, and I don't remember any outrage from U.S. unions protesting the practice.

 

[wcs]

Don't know of any cruise line unions in the U.S.

 

[Overspeed]

Don't know of any cruise line unions in the U.S.

 
Cruise ships being registered outside the US started almost 100 years ago. They did it to circumvent US laws and regulations which is what NAS is attempting to do now.
 
Flags of Convenience
Cruise lines have been circumventing U.S. statutes and regulations since as early as the 1920’s. “A number of U.S. vessels, namely the cruise liners the M/V RELIANCE and the M/V RESOLUTE, were ‘re-flagged’ in Panama in order to circumvent the U.S. law banning the sale of alcohol on U.S. registered ships (during prohibition)” (Wing, 2003, p. 175). The International Maritime Organization (IMO), to which the United States is a member, “requires all ships engaged in international trade to have a country of registry in order to sail in international waters. A ship is considered the territory of the country in which it is registered...” (Tomlinson, 2007, p. 137) The verbiage of this clause is particularly important as it states “a country” and could pertain to any country, developed or undeveloped. Even more importantly Tomlinson states that the ship is considered the territory of its country, thus making them subject to that country’s laws and regulations. 
“By opting to re-flag in a new nation, a vessel owner becomes subject to the safety, labor, and environmental codes of that nation.  Thus, those nations whose open registries have become the most popular also tend to be those who possess the most lax labor, safety, and environmental codes” (Wing, 2003, p.176).

 

[eolesen]

Don't know of any cruise line unions in the U.S.

They exist.

There are only a handful of cruise ships which are U.S. flagged, mainly doing river cruises on the Mississippi, Ohio, and Columbia, plus the Hawaiian Island cruise on the Pride of America.

The NCL's "Pride of America" has the Marine Engineers’ Beneficial Association representing their employees, as well as some other employees on their Nassau registered fleet.

Seafarers International Union of North America, and the American Maritime Officers (which is affiliated with the SIU) used to represent the bulk of the river cruise employees before the company who operated them went bankrupt in 2008. A new company has resumed cruises using some of the same boats, but I'm not sure if their employees are represented or not.

There is also a smaller union (Masters, Mates & Pilots) who represents ferry workers in Alaska and Washington State. The Alaska ferries aren't exactly cruise ships, but they do carry passengers, and have overnight accommodations.

Cruise ships being registered outside the US started almost 100 years ago. They did it to circumvent US laws and regulations which is what NAS is attempting to do now.

Most of the issues around flags of convenience started out due to taxation and labor law. The short story is that the shipping companies found a way to operate after labor priced themselves out of the market.

With airlines, it's possible that doing what NAS is proposing would allow them to drive down their exposure to labor unions, but they'd still be subject to any EASA (former JAA) regulations on licensing & aircraft safety.

 

[TDR1502C]

Any similarity to fifteen years ago when US carriers could not find and hire enough aircraft mechanics without raising wages and suddenly foreign repair stations became approved for use by the FAA?