THE OPERATING DIFFERENTIAL SUBSIDY IN THE 1970 MERCHANT MARINE ACT

This paper explains the manner in which the operating differential subsidy and its wage subsidy index are computed, operate and are administered under the 1970 Merchant Marine Act. If an operator keeps changes in his wage costs at par with changes in the index, then he is eligible to receive payments equal to the excess of his costs over those of the foreign competitor. Conversely, should the changes in the domestic operator's costs exceed or be less than changes in the index, the subsidy will equal the difference between the index and foreign costs. The wage subsidy index system will effectively tie wage changes of seafarers to overall productivity changes in the economy. Thus the index system may discriminate against maritime labor if productivity in this industry rises at a faster rate than overall national productivity.

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  • Corporate Authors:

    American Society of Traffic and Transportation

    22 West Madison Street
    Chicago, IL  USA  60602
  • Authors:
    • Franco, G R
  • Publication Date: 1973

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Filing Info

  • Accession Number: 00051027
  • Record Type: Publication
  • Source Agency: American Society of Traffic and Transportation
  • Files: TRIS
  • Created Date: Feb 20 1974 12:00AM