[Congressional Record (Bound Edition), Volume 145 (1999), Part 17]
[House]
[Page 24650]
[From the U.S. Government Publishing Office, www.gpo.gov]



        U.S. NAVY AND MSC SEND AMERICAN SHIPYARDS JOBS OVERSEAS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Guam (Mr. Underwood) is recognized for 5 minutes.
  Mr. UNDERWOOD. Mr. Speaker, for years in this Nation we have passed 
all kinds of laws and regulations to help protect American jobs and 
America's industrial base. Indeed, the U.S. military has long supported 
this assertion, and has been an integral part of maintaining a high 
level of readiness through the preservation and maintenance of a strong 
domestic industrial base. Along with this capacity comes the value and 
know-how of America's skilled work force.
  In a day and age where the American skilled worker has sometimes 
become an endangered species, the Federal Government, in particular the 
Department of Defense, should try to preserve and defend these jobs. 
For 80 years these types of jobs were the backbone of the middle class 
in many communities throughout our country, including my home island of 
Guam.
  Mr. Speaker, one would think that U.S. tax dollars would be spent 
here in this country to preserve this legacy. One would think that the 
Department of Defense would sooner spend these tax dollars here to 
preserve American jobs. But sadly, it seems that the U.S. military 
would rather spend these tax dollars in Japan or Korea or Singapore, to 
the loss of U.S. jobs.
  Here is the outrageous truth, Mr. Speaker: The U.S. Navy and the 
Military Sealift Command annually send U.S. jobs overseas so they can 
save a few bucks. This is the truth. The MSC asks every year the Navy 
permission to have U.S.-flagged, U.S.-crewed, U.S.-owned and operated 
military ships to be repaired in foreign shipyards because it is 
cheaper.
  We may ask ourselves, will lower costs to the Navy mean my tax 
dollars may go further? This is what the Navy and the MSC say. They 
tell me that they are cost-driven.
  The fact is that foreign shipyards can always beat U.S. shipyards in 
terms of price for several reasons, primarily because foreign shipyards 
are subsidized by their central governments. Foreign shipyards do not 
have to pay their workers decent wages. Foreign shipyards do not have 
to comply with health and safe work environments.
  We tried to solve this problem by an amendment that I introduced in 
the 104th Congress to title X which requires the Navy, including MSC, 
their vessels, to make sure that their ships are repaired in American 
shipyards. My amendment added Guam to that, because Guam is part of the 
United States.
  But in recent years, the Navy has adopted a subterfuge in this. They 
have established an internal waiver policy that essentially defeats the 
congressional intent of title X, and the Navy has implemented a policy 
of not designating any home port for Military Sealift Commands, so they 
can undermine the intent of this law. This has resulted in the denial 
of Navy MSC work to Guam, Hawaiian, Alaskan, and Californian shipyards.
  Mr. Speaker, this sham that the Navy and MSC purports will save money 
is a farce. It may save money, but at the cost of thousands of jobs. 
This will then increase reliance on unemployment insurance and welfare 
rolls, and further erode America's industrial capacity.
  In summary, the Navy and MSC are doing two things. They are violating 
the congressional spirit and intent of the law to preserve jobs and 
save a few dollars. Two, they are handing U.S. shipyards jobs overseas.
  I will be sending a Dear Colleague letter around to sign onto a 
letter to Secretary of Defense Bill Cohen to tell him that this 
practice is wrong, it is harmful to the national security of this 
Nation, and impedes readiness. I hope Members of this body will join me 
in this endeavor.

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