§ 262.22 Unlicensed personnel.

(a) On all vessels having a "power tonnage" of 7,501 to 12,000, at least one wiper shall be carried, and on all vessels of a "power tonnage" of 12,001 and over, no less than two wipers shall be carried. "Power Tonnage" as used in this section represents the gross tonnage of the vessel plus its indicated horsepower as shown in "Merchant Vessels of the United States," June 30, 1936, published by the Bureau of Marine Inspection and Navigation of the United States Department of Commerce.

(b) Minimum-manning scales for other ratings will be prescribed by the Board for individual vessels or types of vessels on completion of individual surveys of each ship.

REASONABLE WORKING CONDITIONS

§ 262.31 Licensed officers.

The following reasonable working conditions are prescribed for licensed officers employed on all types of vessels receiving an operating-differential subsidy.

(a) Obedience. Prompt obedience shall be rendered to the orders of the master and other superior officers.

(b) Holidays. For the purpose of these working conditions, the following shall be deemed to be holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When any of the foregoing holidays fall on Sunday, the following Monday shall be deemed to be a holiday.

(c) Inspections. In order to insure cleanliness and orderliness the heads of the various departments shall make a daily inspection of all crew accommodations. The master shall personally make at least one weekly inspection of the entire vessel with particular attention to the crew's quarters and food, and he shall enter a record in the log of his inspection and findings.

(d) Subsistence and quarters. When meals are not furnished, licensed officers shall receive a subsistence allowance at the rate of $3 per day and, when required to sleep ashore, they shall receive an allowance of $2 per night for lodging.

(e) Travel allowances. When traveling in the course of employment from one vessel to another or from one port to another, licensed officers shall be paid regular wages while en route and shall be provided with transportation (first class by land, with berth, and cabin class

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by sea) and subsistence at the rate of $3.75 per day except where subsistence is included with transportation.

(f) Withdrawal of vessel from service. (1) If, prior to the completion of shipping articles, the vessel is withdrawn from service for any cause, including shipwreck, licensed officers shall be provided with return transportation and subsistence, as provided in paragraph (e) of this section, to the port where shipping articles were signed, unless another port is designated in the shipping articles. Full wages shall be paid up to the time of arrival at either of such ports. Application for such return transportation, subsistence and wages must be made within 15 days from the date of withdrawal of the vessel from service, except that, in the case of shipwreck, such application must be made within 15 days from the date of arrival at a safe port.

(2) Licensed officers entitled to return transportation in accordance with this section shall not be paid the money equivalent of such return transportation.

(g) Retention of licensed officers. No licensed officer shall be laid off without pay over a Saturday afternoon, Sunday or a holiday. A full complement of licensed officers shall be employed on any vessel operating on a regular schedule at all times when such vessel is in port, unless the time between arrival at and sailing from the port exceeds 15 days, or unless such vessel is to be withdrawn from service: Provided, That licensed officers, whose employment has been terminated or who are on vacation need not be replaced.

(h) Vacation. For each year of continuous service on the subsidized vessels of the contractor beginning with November 1, 1937, every licensed officer shall receive a vacation of 14 consecutive days with full pay.

(1) Such vacation shall be cumulative to the extent mutually agreed upon and shall be allowed at such times as may be convenient to the operating necessities of the service. No cash allowance in lieu of vacation shall be made.

(2) If, after 6 months of continuous service, employment is terminated through no fault of the officer, he shall be entitled to such vacation as has accrued on the basis of one-twelfth the annual period per month. Continuous service shall not be deemed to be broken by temporary furloughs from the service

of the contractor: Provided, That no vacation shall accrue during such periods of furlough.

§ 262.32 Unlicensed personnel.

Prompt obedience shall be rendered to the orders of the master and other superior officers.

(a) Holidays. For the purpose of these working conditions, the following shall be deemed to be holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When any of the foregoing holidays falls on Sunday, the following Monday shall be deemed to be a holiday.

(b) Inspections. In order to insure cleanliness and orderliness, the heads of the various departments shall make a daily inspection of all crew accommodations. The master shall personally make at least one weekly inspection of the entire vessel with particular attention to the crew's quarters and food, and he shall enter a record in the log of his inspection and findings.

(c) Subsistence and quarters. When meals are not furnished, unlicensed members of the crew shall receive a subsistence allowance at the rate of $1.80 per day and, when required to sleep ashore, they shall receive an allowance of $1 per night for lodging.

(d) Travel allowance. When traveling in the course of employment from one vessel to another or from one port to another, unlicensed personnel shall be paid regular wages while en route and shall be provided with necessary transportation and subsistence at the rate of $2.50 per day, except where subsistence is included with transportation.

(e) Withdrawal of vessel from service. (1) If, prior to the completion of shipping articles, the vessel is withdrawn from service for any cause, including shipwreck, unlicensed personnel shall be provided with return transportation and subsistence, as provided in paragraph (d) of this section, to the port where shipping articles were signed, unless another port is specifically designated in the articles. Full wages shall be paid up to the time of arrival at either of such ports. Application for such return transportation, subsistence and wages must be made within 15 days from the Idate of withdrawal of the vessel from service, except that, in the case of shipwreck, such application must be made within 15 days from the date of arrival at a safe port.

(2) Unlicensed personnel entitled to return transportation in accordance with this section shall not be paid the money quivalent of such return transportation.

(f) Vacations. For the first year of continuous service on the subsidized vessels of the contractor beginning November 1, 1937, every unlicensed member of the crew shall receive a vacation of 7 consecutive days with full pay and, for each subsequent year of continuous service, a vacation of 14 consecutive days with full pay.

(1) Such vacation shall be cumulative to the extent mutually agreed upon and shall be allowed at such time as may be convenient to the operating necessities of the service. No cash allowance in lieu of vacations shall be made.

(2) If, after 6 months of continuous service, employment is terminated through no fault of the employee, he shall be entitled to such vacation as has accrued on the basis of one-twelfth the annual period per month. Continuous service shall not be deemed to be broken by temporary furloughs from the service of the contractor: Provided, That no vacation shall accrue during such periods of furlough,

Prompt obedience shall be rendered to the orders of the master and other superior officers.

(a) Holidays. For the purpose of these working conditions, the following shall be deemed to be holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When any of the foregoing holidays falls on Sunday, the following Monday shall be deemed to be a holiday.

(b) Inspections. In order to insure cleanliness and orderliness, the heads of the various departments shall make a daily inspection of all crew accommodations. The master shall personally make at least one weekly inspection of the entire vessel with particular attention to the crew's quarters and food, and he shall enter a record in the log of his inspection and findings.

radio company servicing the radio station of the vessels on which employed.

CROSS REFERENCE: For regulations of the Federal Communications Commission, see 47 CFR Chapter I.

(d) Allowance for travel. When traveling in the course of employment from one vessel to another or from one port to another, radio operators shall be paid regular wages while en route and shall be provided with transportation (first class by land, with berth, and cabin class by sea) and subsistence at the rate of $3.75 per day except when subsistence is included with transportation.

(e) Withdrawal of vessel from service. (1) If, prior to the completion of shipping articles, the vessel is withdrawn from service for any cause, including shipwreck, radio operators shall be provided with return transportation and subsistence as provided in paragraph (d) to the port where shipping articles were signed, unless another port is specifically designated in the articles. Full wages shall be paid up to the time of arrival at either of such ports. Application for such return transportation, subsistence and wages must be made within 15 days from the date of withdrawal of the vessel from service, except that, in case of shipwreck, such application must be made within 15 days from the date of arrival at a safe port.

(2) Radio operators entitled to return transportation in accordance with this rule shall not be paid the money equivalent of such return transportation.

(f) Maintenance of station. No radio operator shall be required to furnish equipment or supplies necessary for the maintenance of the vessel's radio station.

(g) Subsistence ashore. When meals are not furnished, radio operators shall receive a subsistence allowance at the rate of $3 per day and, when required to sleep ashore, they shall receive an allowance of $2 per night for lodging.

(h) Retention in port. No radio operator shall be laid off without pay over a Saturday afternoon, Sunday or holiday.

(1) Vacations. For each year of continuous service on the subsidized vessels of the contractor beginning with November 1, 1937, every radio operator shall receive a vacation of 14 consecutive days with full pay.

(1) Such vacation shall be cumulative to the extent mutually agreed upon and shall be allowed at such times as may be convenient to the operating necessities

of the service. No cash allowance in lieu of vacation shall be made.

(2) If, after 6 months of continuous service, employment is terminated through no fault of the radio operator, he shall be entitled to such vacation as has accrued on the basis of one-twelfth the annual period per month. Continuous service shall not be deemed to be broken by temporary furloughs from the service of the contractor: Provided, That no vacation shall accrue during such periods of furlough.

§ 262.34 Suspension.

(a) In order to make available an increased number of qualified officers and unlicensed personnel to meet the higher levels of manpower demand associated with the current level of shipping activity, each officer and seaman may, at his option, in accordance with the terms of paragraph (b) of this section, waive time off for accrued vacations but receive accrued vacation pay while on active duty status.

(b) Subject to the following stated conditions, the Maritime Administrator/ Maritime Subsidy Board suspends until such time that conditions warrant otherwise, the working condition requirement contained in §§ 262.31-262.33 of this part:

(1) In each instance the union must certify to the operator that qualified personnel are not otherwise available;

(2) Such suspension of said working condition requirement is deemed temporary;

(3) The working condition requirement contained in §§ 262.31-262.33 will be returned to its former status when, in the opinion of the Maritime Administrator/ Maritime Subsidy Board, conditions so warrant; and

(4) The election to accept a proffered cash allowance in lieu of time off shall be optional with the crew member.

By order of the Maritime Subsidy Board and the Acting Maritime Administrator.

[G.O. 15, Amdt. 1, 31 F.R. 8494, June 17, 1966]

CADETS AND OFFICERS

§ 262.50 Exclusion of cadets and cadet officers from minimum-manning and wage scales and working conditions. The Board having determined, on advice of its General Counsel, that Cadets and Cadet Officers in training on vessels receiving an operating subsidy do not

optimized the economy of standardized ship construction, when the applicant feels that a new design is necessary in exceptional cases and justifies this need to the Board. Where the Board concludes contrary to an applicant that a previously developed design can be satisfactorily adapted to requirements of the intended service at a substantial saving compared with building to a new design, invitations to bid shall be issued for both the standard design and the custom design of the owner's preference. Construction-differential subsidy will be based on whichever design requires the least subsidy.

2. The Board may require such variations from designs of ships previously approved as are necessary to optimize the economic utilization of mechanization and labor saving equipment with the potential of reducing operating-differential subsidy (ODS). Other nonstandard equipment or shipbuilding components shall be eligible for CDS, only if (a) their effect is to decrease the total sum of such CDS and ODS projected over the life of a ship, or (b) when it can be demonstrated with reasonable certainty that the added investment will produce a return to the owner of at least 10 percent per annum after taxes over the life of the investment.

3. Value engineering provisions will be included in all construction-differential subsidy contracts and construction contracts. Value engineering items considered mandatory by the Board prior to or during the development of the bidding plans and specifications and during the actual ship construction period shall be incorporated in the plans and specifications or incorporated in the ship. If the mandatory items are not acceptable to the owner the difference in cost, as determined by the Board, between the value engineered and the installed item will be borne by the owner. This paragraph shall not be construed (a) as revising the present appeal rights of the shipowner, or (b) as imposing upon the shipbuilding contractor any requirement for employment of a specific number of value engineering personnel.

4. Subsidy for changes under the construction contract will be allowed only when the net effect of the change will with reasonable certainty (a) comply with the standard in 2 (a) or (b) above, (b) correct a deficiency in design which is clearly essential, or (c) comply with a change in the requirement of a regulatory body which becomes effective after 30 days preceding bid opening. Any changes desired by the owner which do not adversely affect the safe, efficient or economical operation of the ship will be permitted, but without the benefit of subsidy. Subsidy for changes under category 2(b) shall be based on an estimate as to what the work would have cost if it had been included in the bidding specifications.

5. Post-contract engineering costs incurred by the owner for engineering review and plan approval will be subsidized within

as

a ceiling. The owner's expenses for such engineering and plan approval shall be limited for subsidy purposes to a maximum of 2 percent of the low bid for each of one ship in each contract. This limitation shall apply to liner cargo vessels of the break bulk type with no more than twelve passengers, but including special features such mechanization, container carrying devices, special cargo handling equipment, refrigeration spaces and special deep tanks, etc. This upper limit shall be adjusted downward to take into account features including, but not limited to, standardized design, successive flights of ships in the same yard, or successive flights of ships in different yards. 6. Construction-differential subsidy on owner's engineering expenses for inspection when only one ship is being built shall be limited to an amount equal to 1.3 percent of the bid price. For multiple ship construction the amount subsidizable will be 1.3 percent of the contract price per ship plus an additional increment of 0.36 percent for each vessel beyond the first. For example, the subsidizable amount for inspection on a four ship contract would be 1.3 percent plus 1.08 percent (0.36×3) or 2.38 percent times the cost of the each of four ship bid price.

This limitation shall apply to liner type cargo vessels of the break bulk type with no more than 12 passengers but including special features such as mechanization, container carrying devices, special cargo handling equipment, refrigeration spaces and special deep tanks, etc. This upper limitation shall be adjusted downward to take into account features including, but not limited to, standardized design, or other vessels for the same owner and in the same shipyard. 7. Interior decorators' fees will be limited to a maximum of $10,000 per contract.

8. Construction-differential subsidy will not apply to owner furnished equipment. All material or equipment to which construction-differential subsidy shall apply must be included in the plans and specifications upon which the competitive ship construction bids are based or included in authorized changes under contract.

9. Notwithstanding any of the foregoing limitations on subsidy the Board will in exceptional cases authorize subsidy or research and development grants for new ship concepts or individual ship features whose economic justification lie in the possibility of future major advances in ship construction or operation and which in the Board's Judgment may lead to greater efficiency and economy.

APPENDIX No. 2-STATEMENT OF GENERAL POLICY

1. The appropriations available for the payment of construction-differential subsidy by the Maritime Subsidy Board necessarily are limited. Present replacement program schedules for individual operators