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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 (1) If, prior to the completion of shipping articles, the vessel is withdrawn from service for any cause, including shipwreck, radio operators shall be provided with return transportation and subsistence as provided in paragraph (d) to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.

(i) 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]

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Any interested party desiring revision of any of the standards set up in the minimum manning scales, minimum wage scales or minimum working conditions prescribed by the Board under section 301(a) may petition the Board for a hearing to that end. Such petition shall specify the revision or revisions considered desirable and the reasons in support thereof.

[G.O. 32, 5 F.R. 2229, June 14, 1940]

§ 262.103 Views of interested parties.

Upon receipt of a petition for a hearing, the Board will provide for an investigation of the views of all parties whose interests appear affected by the petition and for a report thereof to the Board. [G.O. 32, 5 F.R. 2229, June 14, 1940]

§ 262.104 Order for and notice of hearing.

If the Board determines that there is reasonable ground therefor, the Board shall order a hearing and issue public notice thereof, setting forth the time, place and scope of the hearing. Such notice shall be filed with and published in the FEDERAL REGISTER not less than 15 days prior to the date of the hearing, when practicable.

[G.O. 32, 5 F.R. 2229, June 14, 1940]

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The conduct of the hearing shall be a function of the Hearing Examiners' Office except where the Board shall otherwise direct. Any individual, firm, corporation, group, organization or other party interested in the outcome of the proceedings shall have the right to appear, either personally or by representation, at the hearing and be heard. The duly elected representatives of the organizations which have been certified by the National Labor Relations Board as the proper collective bargaining agencies shall have the right to represent the employees who are members of their organizations at any such hearing.

[G.O. 32, 5 F.R. 2229, June 14, 1940]

§ 262.106 Proposed report and service thereof.

Upon conclusion of the hearing, a proposed report shall be prepared containing a statement of the issues, facts, findings and conclusions. A copy of this proposed report shall be served by mail upon each party who shall have appeared at the hearing and requested a copy thereof.

[G.O. 32, 5 F.R. 2229, June 14, 1940] § 262.107

port.

Exceptions to proposed re

Within 15 days after service of the proposed report, any party may file and serve exceptions to any statement therein contained, together with a brief in support thereof, except that parties on the Pacific Coast, may file and serve such exceptions and briefs within 20 days after service.

[G.O. 32, 5 F.R. 2229, June 14, 1940] § 262.108 Report and recommendations to the Board.

After expiration of the period for the filing of exceptions and briefs, a report and recommendations shall be submitted to the Board, together with the transcript of the record of the hearing and subsequent proceedings.

[G.O. 32, 5 F.R. 2229, June 14, 1940]

§ 262.109 Final action of Board.

The final action of the Board shall be the adoption of its final report and the issuance of an appropriate order thereon.

[G.O. 32, 5 F.R. 2229, June 14, 1940]

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The purpose of this part is to establish the policy and procedure to be followed by the Maritime Administration, and by the subsidized steamship operators in conducting subsidy condition surveys and accomplishment and reporting of maintenance and repairs on vessels approved for operation under the Maritime Subsidy Board Operating-Differential Subsidy Agreements.

§ 272.2 Subsidy condition survey requirements.

(a) Condition surveys of vessels approved for subsidized operation shall be conducted in the following instances:

(1) At the commencement of the first subsidized voyage of each vessel placed in subsidized operation, except newly constructed vessels which enter subsidized service immediately upon completion of building and for which there is a survey report made by the Trial and

Guarantee Survey Boards of the Maritime Administration or any other condition report satisfactory to the United States.

(2) At the commencement of the first voyage of each vessel after resumption of subsidized operation following temporary withdrawal from subsidized operation. For the purposes of the surveys required by this subparagraph and subparagraph (5) of this paragraph a vessel which is not withdrawn from the agreement, shall not be considered as temporarily withdrawn if it performs unsubsidized voyages in a subsidized service of the same operator.

(3) At the commencement of the first voyage of each vessel following the effective date of the establishment of a maintenance (upkeep) and repair subsidy rate, if such subsidy rate was not established as of subparagraph (1) of this paragraph.

(4) Upon the discontinuance of a maintenance (upkeep) and repair subsidy rate.

(5) Upon the withdrawal of each vessel from subsidized service, either temporarily or permanently. For the purposes of the surveys required by this subparagraph and subparagraph (2) of this paragraph a vessel which is not withdrawn from the Agreement, shall not be considered as temporarily withdrawn if it performs unsubsidized voyages in a subsidized service of the same operator.

(6) Upon the termination of the last voyage of each vessel under the operating-differential subsidy contract or at the end of the contract period with respect to subsidized vessels in idle status at that time, unless such contract is immediately superseded by a new operating-differential subsidy contract with the same operator.

(b) A vessel commencing subsidized operation outside the continental limits of the United States shall be surveyed immediately at her first port of call in the United States, and it shall be incumbent upon the operator to make arrangements with the appropriate Ship Repair and Maintenance Field Office for the conducting of such survey.

[G.O. 20, 2d Rev., 23 F.R. 2920, May 1, 1958, as amended by Amdt. 3, 28 F.R. 3696, Apr. 16, 1963]

§ 272.3 Subsidy condition survey instructions; general.

Instructions and information relative to conducting subsidy condition surveys as outlined in § 272.2 will be furnished the respective Coast Directors by the Office of Government Aid with informative copies of the notifications to the Department Office of the Division of Ship Repair and Maintenance; however, the Ship Repair and Maintenance Field Offices are authorized when requested by subsidized operators, to conduct condition surveys specified in § 272.2. At the time a subsidy condition survey is to be conducted, the operator is to be invited for attendance of his arrange representative; however, such representative is not required to be present.

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(a) Condition surveys conducted in conformance with requirements of § 272.2 (a) (1), (2), and (3) will be reported on Form MA-58 and shall be prepared in sufficient detail to readily reveal a comprehensive picture of the conditions noted and shall contain indication of the "Record", "Deferred", "Unsighted", and "Builder's and/or Repair Contractor's Responsibility" items. Forms MA-55 Condition Report-Turbine and Gears, MA-56 Tooth Contact Report, MA-57 Drydock Report and MA-59 Diesel Engine Report are to be used as applicable.

(1) Record items. This classification shall be indicated in the survey beside all items revealing conditions which, in conformance with good commercial practice do not require immediate repairs.

(2) Deferred item. This classification shall be indicated in the survey beside all items which, in accordance with good commercial practice, require repairs, but which are postponed, or items which are classification and/or Coast Guard requirements carrying a grace period for performance thereof.

(3) Unsighted items. This classification shall be indicated in the survey beside all items not opened up for internal inspection and those items of the vessel's underwater body which could not be inspected due to the vessel being afloat.

(4) Builder's and/or repair contractor's responsibility. This classification shall indicate those items which have been determined to be the builder's or repair contractor's responsibility.

(b) The condition surveys prescribed in § 272.2 (a) (4), (5), and (6) shall be accomplished as follows:

(1) The subsidized operator shall prepare and furnish the appropriate Ship Repair and Maintenance Field Office detailed repair specifications covering all work outstanding on the vessel after completion of repairs for the voyage immediately preceding the survey requirement. The Ship Repair and Maintenance Field Office shall conduct an inspection of the vessel prior to its next sailing for the purpose of assuring that the operator's specifications cover outstanding defects which require attention and which are attributable to subsidized operation. These specifications, together with the findings of the Ship ReMaintenance Field pair and Office regarding the contents thereof, shall constitute the subsidy condition survey report required by the OperatingDifferential Subsidy Contract.

(2) The Operator shall furnish the Ship Repair and Maintenance Field Office with sufficient copies of the specifications, prepared pursuant to subparagraph (1) of this paragraph, to meet the latter's needs.

(3) In those cases involving discontinuance of a maintenance and repair rate, permanent withdrawal from subsidized service, or contract termination without simultaneous renewal, the work contained in these specifications and verified by the Ship Repair and Maintenance Field Office as defects attributable to subsidized operation, will not be considered for subsidy participation unless it is accomplished not later than the next drydocking period (periodical or otherwise) and the ownership of the vessel is retained by the particular operator; provided, however, that the transfer of ownership of a vessel to the United States pursuant to the provisions of section 510 of the Merchant Marine Act, 1936, as amended, shall not preclude subsidy participation otherwise permitted.

(4) No work except the correction of such defects as are detailed in the specifications will be considered for subsidy participation.

(5) The costs of all maintenance and repair items which are noted on any condition survey report shall be chargeable to the period of operations covered by the report, except that, effective January 1, 1964, the costs of any such items which have been noted on a Recapture condition survey report previously required by section 272.2, and which are properly includable in the subsidized ac

countings, shall be chargeable to the recapture period in which the work is performed.

(c) The operator shall make arrangements with the appropriate Ship Repair and Maintenance Field Office for the conducting of surveys required by this part. The operator shall assist the representative of the Ship Repair and Maintenance Field Office, and shall permit access to all parts of the vessel, its log books and official records.

[G.O. 20, 2d Rev., 23 F.R. 2920, May 1, 1958, as amended by Amdt. 1, 27 F.R. 3203, Apr. 4, 1962; Amdt. 3, 28 F.R. 3696, Apr. 16, 1963; Amdt. 4, 28 F.R. 6458, June 22, 1963]

§ 272.4 Execution of subsidy condition survey reports.

All survey reports are to be signed by an authorized representative of the operator of the vessel involved, if such representative was in attendance, as well as by the Marine Surveyor who conducted the survey, and by the appropriate representative of the Division of Ship Repair and Maintenance under whose jurisdiction the survey was conducted.

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It shall be the responsibility of the respective Maritime Administrative Field Office to compile sufficient copies of the subsidy surveys in order to make distribution as follows:

(a) One copy to the Departmental Office Division of Ship Repair and Maintenance, Washington, D. C.

(b) One copy to the operator of the subsidized vessel involved.

(c) One copy to be retained in the files of the Field Office of the Division of Ship Repair and Maintenance under whose jurisdiction the survey was conducted. § 272.6 Subsidy maintenance and repair procedure.

(a) The preparation of specifications, the awarding of maintenance and repair contracts, the inspection and approval of maintenance and repairs as to workmanship, quality, materials and satisfactory completion are all the responsibility of the subsidized operator.

(b) Subsidized operators shall in sufficient time, notify the representative of the Division of Ship Repair and Maintenance in the appropriate Maritime Administration Field Office as to the contemplated date and port of arrival of a subsidized vessel, so that a Marine Surveyor of the Division of Ship Repair and Maintenance may make an inspec

tion of proposed maintenance and repairs, and check repair lists as to the necessity for the work involved.

(c) Subsidized maintenance and repairs shall be awarded on a competitive bid basis whenever practicable or advantageous. However, work awarded on a negotiated basis shall be considered for subsidy participation if the operator furnishes satisfactory reasons for the necessity of awarding the work on other than a competitive bid basis. The Division of Ship Repair and Maintenance shall be invited to have a representative present at the negotiation of price for such work and it shall be his responsibility to determine the justification for performance of maintenance and/or repairs by the subsidized operators on a non-competitive basis, as well as reasonableness of negotiated prices. Findings in this respect shall be incorporated in the letters prepared by the Chief, Ship Repair and Maintenance Branch, transmitting to the Departmental Office in Washington, D. C., the maintenance and repair summaries covering the work involved. However, if the operator has given the district representative advance notice of his intention to negotiate the cost of repairs, the absence of such representative during the negotiations, shall not, in itself, prejudice the right of the operator to receive subsidy on such repairs.

(d) The repairing and maintenance upkeep of subsidized vessels by any subsidiary company, holding company, affiliate company, or associate company of the operator, as differentiated from directly hired shore gang labor, is subject to written approval by the Maritime Administration pursuant to section 803, Merchant Marine Act, 1936, as amended. Requests for such approval shall be addressed to the appropriate Coast Director. When such work is performed on subsidized vessels by any subsidiary company, holding company, affiliate company, or associate company of the operator, the specifications shall be itemized in detail and item priced.

(e) Maintenance and repair specifications, including those covering work to be performed by operator's shore gang are to be prepared in sufficient detail to permit determination of the reasonableness of prices, and are to include the items necessary for maintaining the vessel in a seaworthy condition, and in an efficient state of maintenance and repair. Contractor's invoices shall contain the

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