B.C.D. 00-23 JUN 3 0 2000

EMPLOYER STATUS DETERMINATION

National Marine Engineers’ Beneficial Association (NMEBA)

This is the determination ofthe Railroad Retirement Board concerning the

continued status ofthe National Marine Engineers’Beneficial Association

(NMEBA), BA. No. 8919, as an employer under the Railroad Retirement Act (45

U.S.C. §231 et S£Q.) (RRA) and the Railroad Unemployment Insurance Act (45

U.S.C. §351 el sea.) (RUIA).

The NMEBA has been an employer within the meaning ofthe Railroad

Retirement Act and the Railroad Unemployment Insurance Act. Its name

appears in the Employer Status List under B. A. No. 8919, with the period of

creditable service shown as February 23,1875 to date.

Information in response to a coverage investigation regarding NMEBA was 

obtained in April 1995 from Michael Derby, an attorney for NMEBA. According

to Mr. Derby, for many years, NMEBA officers were covered by the Board and

contributions were paid on behalf oftheir participants. However, Mr. Derby

stated that since December 31, 1992, NMEBA officers have received no

compensation from NMEBA and the present Constitution provides that officers

shall serve without salary. Thus, according to Mr. Derby, there are no salaried

NMEBA officers and therefore no contributions have been made to the Board

since 1992. Mr. Derby also stated that NMEBA and its subordinate Districts no

longer represent employees employed in the railroad industry.

Recent information regarding NMEBA was obtained in March 2000 from

Mr. George E. Clements, Associate General Counsel for NMEBA. According to

Mr. Clements, NMEBA does not currently have any “railroad employees,

railroad engineers, or railroad cargo handlers” as members ofits labor union.

Mr. Clements stated that NMEBA holds a charter from the AFL-CIO. It is 

composed of districts ofwhich District No. 1, PCD, MEBA is a sole surviving

district. District No. 2 left NMEBA in March 1994. District No. 3, which

represented radio officers on board ships, left the NMEBA in December, 1998.

NMEBA’s purpose is to function solely as a labor union. The one surviving

district, District No. 1 MEBA, primarily represents licensed officers both deck

and engine who are employed on vessels engaged in the domestic and foreign

commerce of the United States. District No. 1 has a division which represents

shoreside employees that primarily work for APL as clerks and another

shoreside division known as the City Burough ofJuneau division which also

represents shoreside people in Juneau, Alaska. Neither one of these divisions

represents railroad employees. The district also has several autonomous

affiliates that represents shoreside individuals but to the best of Mr. Clement’s

knowledge, none ofthem represent railroad employees. NMEBA does not have

the right to participate in the election of labor members ofthe National

BA# 8919
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National Marine Engineers’ Beneficial Association (NMEBA)

Railroad Adjustment Board, nor is the association maintained or controlled

wholly or principally by two or more railroad employers covered under the

Railroad Retirement Act, according to Mr. Clements. Lastly, Mr. Clements

stated that NMEBA has “no overall relationship with the railroad industry.”

From the information obtained regarding NMEBA, it appears that NMEBA (1)

does not represent any rail employees (2) has not participated in the election of 

labor members ofthe National Railroad Adjustment Board for at least the

previous seven years and (3) has not filed compensation and service reports

since December 31, 1992.

Section 202.11 (20 CFR 202.11) ofthe Board’s regulations states that:

The employer status of any company or person shall terminate

whenever such company or person loses any ofthe characteristics

essential to the existence of an employer status.

The information summarized above indicates that NMEBA has lost the

essential characteristics of a rail labor organization and no longer meets the

definition of an “employer” under the Acts. The Board therefore finds that

effective with the close of business on December 31, 1992, the date

compensation was last reported for any officers or members of the labor

organization, the National Marine Engineers’ Beneficial Association ceased

being a covered employer under the Railroad Retirement Act and the Railroad

Unemployment Insurance Act.