b'SAFETY MATTERS: LEGAL REPORT:Coast Guard CancelsPost PandemicLEGAL REPORTHigh Risk SmallEmployee MovementsSAFETY Passenger Vessel PolicyERIC CHRISTENSEN PVA DIRECTOR OF REGULATORY AFFAIRS & RISK MANAGEMENT STEVEN BERS, ESQ// PVA LEGAL COUNSELF ollowing outreach to the highest levelsnecessarilyrefl ecttheowner/operatorsmaybe.Because there is no requirement forT he perception of passenger vessel employersvessel owners should not be so focused on newexistingemployeesmaybeput-off ifnew oftheU.S.CoastGuard,includingperformance or condition of the vessel, butdomestic passenger vessels to have a SMS, thethatthereissignifi cantmovementofhiring as to overlook the need to preserve thehires enjoy hiring wages exceeding the hiring theCommandant,PVAandotherinstead refl ects the potential outcomes basedCoast Guard s inspection database does notemployeesleaving jobs and going to newemployment of existing employees.Indeed,wages paid to existing employees, or by hiring concernedindustrygroupssuccessfullyon an analysis of both the specifi c vessel andcontain information identifying vessels wherejobsseems to be statistically supported by Junebonusespaidtonewemployees,without convincedtheCoastGuardthatthetermvesselswithsimilaractivity.Thismeansa voluntary SMS has been implemented.Thisdata issued by the U.S. Department of Labor.InPassenger vesselequivalent retention consideration for existing highriskhadunintendedconsequencesthatnoteverydomesticpassengervesselis where engagement with the local OCMI isa report issued in June 2021, job separations,employees. So too, wage compression, caused to a domestic passenger vessel fl ravagedrequiresthesamelevelofCoastGuardimportant.TheCoastGuardwillevaluatedefi ned as quits, layoff s and discharges, increasedowners, if notby the increase in entry level wages may be aeet bytheCOVID-19pandemic.Whileeff ortorexpertisetosuccessfullyconductwhattypeofSMShasbeenimplemented,to5,760,000inApril2021.Placingthatinsource of dissatisfaction by existing employees contendingthatthetermhighriskwasaninspection.A49-passengerwatertaxiwhether there are internal audits, third partycontext, that number (excepting the anomaly ofalready proactivelywho observe little fi nancial benefi t from their not meant to infer non-compliance or lessengaged on a route no more than 1000 feet(Class Society) oversight, etc. before making athe pandemic months of February to April 2020)doing so, shouldpast longevity.safe,theCoastGuardagreedwithPVAsfrom shore requires a diff erent level of eff ortdetermination.Once SMS becomes requiredwas the highest level of employment separations in recommendationthatatieredInspectionthana250-passengerwhalewatchvesselon certain vessels, the Coast Guards policy willthe 10 years, since record keeping began in 2001. consider greaterIf there can be any message, it may be that programwaseasytounderstandandjustoperating 20 miles off shore. be revised. attention to retentionpassengervesselowners,ifnotalready as eff ective in achieving the Coast GuardsPerhaps an even more telling statistic is found whenproactivelydoingso,shouldconsider marine safety risk mitigation and personnelTheCoastGuardsOfficeofCommercialThe Coast Guard has recognized PVAs Flagshipthedataisbrokendownfurthertoidentifyingand connectedgreater attention to retention and connected resource goals. Vessel Compliance will review the risk modelSMSasmeetingthefunctionalrequirementsonlyquits,meaningavoluntaryseparationrelationshipswithcurrentemployees. fromemploymentinitiatedbytheemployee.relationships with for each U.S. Flag small passenger vessel andforaSMS,soownersandoperatorswhoEmployee retention should enjoy at least equal On June 14, 2021, the Coast Guard issuedprovide revised information to local OCMIsareinterestedinlearningmoreaboutPVAsQuits numbered 3,952,000, in April alone, orcurrent employees.attention and energy to that directed to the WorkInstructionCVC-WI-028(1)Smallby the end of this year for the 2022 operatingFlagship SMS can go to the Member Downloadabout one-half million more than in any otherhiring function. PassengerVesselRiskBasedInspectionseason. area of the PVA website.month in the past decade.While the Department Program.This work Instruction supersedesof Labor data does not well segregate passenger andcancelsCVCPolicyLetter20-02NOT APPLICABLE WHAT ABOUT HIGH RISKvessel industry data, it is telling that comparably InspectionGuidanceforHighRiskSmallTheWorkInstructionmakesclearthatLETTERS? high April-reported quit rates (i.e. the number Passenger Vessels and CG-CVC Policy Lettervessels enrolled in the Streamlined InspectionVessel owners or operators who received high- of quits as a percentage of total employment at a 16-05 (CH-1), Risk-Based Decision MakingProgram (SIP) are not subject to the policy.risklettersfromCoastGuardHeadquartersworkplace) appear to be in three categories which (RBDM) for Small Passenger Vessel (SPV)Inaddition,passengerbargesandthoseat the beginning of this year can discard thosethepassengervesselindustrycrossesdirectly:USCG-Certied Light-Weight hospitality (quit rate of 7.1%), retail (quit rate of Annual Inspection Activity. passengervesselsengagedOff shoreSupplyletters since they reference a policy that no longer5.5%)andtransportation/warehousing/utilitiesAluminum Honeycomb Panels Vessel and Oil Spill Recovery Vessel activitiesexists.As far as official correspondence retained(quit rate of 5.0%).These three categories tracked INSPECTION TIERS AND RISKare also exempt. by the local Coast Guard, personnel from thefor Passenger FerriesMANAGEMENT Office of Commercial Vessel Compliance haveapproximately 2% higher than other employment The Work Instruction provides local OfficersLocal OCMIs can request vessels be addedstated that the letters were not loaded into thecategories.By rough math, if a passenger vessel in Charger Marine Inspection (OCMI) withorremovedfromTierIstatusbasedonCoast Guards inspection database, so there areindustrynumbercouldbeinterpolated,thatdecorative | durable | functionalrisk-basedinformationfortheassignmentlocal experience or performance that is notno copies to be referenced. would mean an employer of 20 employees might expecttoloseoneemployeepermonth,iftherigidized.com/markets/marineof personnel and scope of Inspections fornecessarily captured in national data.So, astrend were linear and continuous.Certifi cation and annual inspections.Thebefore, if there are questions regarding theRisk-based inspection has been a part of the Work Instruction retains the inspection Tierslevel of inspection for a particular vessel, weCoast Guards toolbox since they assumed theIt is a statistical fact that quits and separations I, II, and III and vessels currently assignedencourage owners and operators reach out tomarine safety mission in the 1940s.The newtraditionally run highest in the months between Tier I status will remain in Tier I throughyour local inspector. methodsofassessingpotentialriskbyCoastJulyandSeptember.Thisfactappearstobe 2021.Follow-uporin-serviceinspectionsGuardHeadquarterswilltaketimetosettlemergingwithwhatappearstobepandemic-willcontinueasplanned.ReducedscopeSAFETY MANAGEMENTdown.Vessels will move between tiers as data isdelayedjobmovement,theorizingthatpeople inspections associated with Tier III vesselsSYSTEMSanalyzed and performance measured.PVA staff withajobwerenotmoving,andemployment will also continue in 2021. WiththeCoastGuardspushforthewill remain diligent in our eff orts to work withopportunitieswerefl duringthepandemic. at, implementationofSafetyManagementthe Coast Guard to identify areas of concernIfthesetrendscontinue,therevolvingdoorof AccordingtotheWorkInstruction,theSystems (SMS) across the domestic passengerand mitigate potential issues.employee movement may be expected to continue inspectiontierscorrespondtothevessel fl eet, some have asked if having a SMSinto later 2021.requiredscope,follow-oninspections,will be recognized as a risk reduction measureA copy of the Work Instruction can be viewed andadministrativeprocedureswithinthelikeSIPwhenvesselsarerunthroughhere.If you have any questions, please contactItshardtoidentifyaresponsiveordefensive program.Thetierassignmentdoesnottheriskmatrix?TheanswerisasquishyEric Christensen of PVA staffat echristensen@ strategy for passenger vessel owners, already faced passengervessel.com. with the seemingly universal drought in available applicants.Perhaps the heads-up message is that658 Ohio Street | Buffalo, NY 14203 | marine@rigidized.comSAFETY MATTERS 34 FOGHORN JULY 2021 35 SAFETY MATTERS'