International treaty examination of the Maritime Labour Convention 2006 and the Amendments of 2014

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1 International treaty examination of the Maritime Labour Convention 2006 and the Amendments of 2014 Report of the Transport and Industrial Relations Committee Contents Recommendation 2 Background 2 Implications for New Zealand 2 Fishing vessels 2 Conclusion 2 Appendix A 3 Appendix B 4

2 MARITIME LABOUR CONVENTION 2006 AND THE AMENDMENTS OF 2014 Maritime Labour Convention 2006 and the Amendments of 2014 Recommendation The Transport and Industrial Relations Committee has conducted the international treaty examination of the Maritime Labour Convention 2006 and the Amendments of 2014, and recommends that the House take note of its report. Background The Maritime Labour Convention 2006 provides minimum standards regarding the health, safety, and welfare of seafarers on board ships. It consolidates and updates 37 existing maritime conventions, many of which New Zealand has already adopted. The convention would apply to approximately 31 commercial New Zealand ships with a gross tonnage of 200 or more, and smaller ships engaged in international voyages, and 900 foreign ships that enter our ports, including cargo vessels and cruise liners. Fishing vessels are excluded, and are to be dealt with separately by the Work in Fishing Convention, 2007 (No. 188), which is not yet in force. Implications for New Zealand The main advantage of the convention would be to allow New Zealand to inspect foreign ships carrying New Zealand goods and verify that they treat their crews fairly, to internationally accepted standards. This is important to protect the reputation of New Zealand s exports and trade. Another benefit is a lower risk of maritime accidents resulting from human error by fatigued, malnourished, or pressured crews. Minor or technical amendments to Maritime Rules would be needed to implement the convention in New Zealand. Fishing vessels We note that fishing vessels are excluded from the convention, and we urge the Government to take the necessary steps towards adopting the Work in Fishing Convention, 2007 (No. 188). Conclusion We support the intent of the Maritime Labour Convention 2006 and the Amendments of 2014, and the Government s intention to ratify it. A national interest analysis is appended to this report. 2

3 MARITIME LABOUR CONVENTION 2006 AND THE AMENDMENTS OF 2014 Appendix A Committee procedure The international treaty examination of the Maritime Labour Convention 2006 and the Amendments of 2014 was presented to the House on 3 February The Foreign Affairs, Defence and Trade Committee referred the examination to the Transport and Industrial Relations Committee on 12 February We met between 19 February and 12 March 2015 to consider this item of business. We heard evidence from the Ministry of Transport, and from the Ministry of Business, Innovation and Employment. Committee members Jonathan Young (Chairperson) Andrew Bayly Sarah Dowie Iain Lees-Galloway Clayton Mitchell Sue Moroney Dr Parmjeet Parmar Denise Roche Alastair Scott Phil Twyford Hon Maurice Williamson 3

4 Appendix B Maritime Labour Convention 2006 and the Amendments of 2014 National Interest Analysis Executive summary It is proposed that New Zealand ratifies the Maritime Labour Convention, 2006 (the Convention). The Convention sets internationally agreed minimum standards for the provision of the health, safety and welfare of seafarers on board ships. The Convention would apply to foreign ships (excluding fishing vessels) entering New Zealand ports, and approximately 31 New Zealand ships. Current New Zealand laws, and employment conditions on New Zealand ships, are considered to be of a high international standard, and are largely consistent with the standards of the Convention. New Zealand has only a small merchant shipping fleet, which operates almost exclusively within New Zealand. New Zealand is reliant on foreign shipping to carry its imports and exports. Around 890 foreign commercial ships, including cargo vessels and cruise liners, make around 2,250 visits to New Zealand a year, with around 6,000 port stops. Ratifying the Convention will expand New Zealand s jurisdiction to allow it to inspect and verify that foreign ships carrying New Zealand s goods treat their crew fairly, and in accordance with internationally accepted standards. Ratifying the Convention will also protect the reputation of New Zealand exports, given that more than 99 percent of New Zealand s export goods are transported by these foreign ships. 1 The cost, impacts and risks of ratifying the Convention are minimal, because: the Convention was developed in partnership with shipping interests to ensure that the Convention s minimum standards reflect current industry practice and can be easily met by most shipowners New Zealand law, which applies to New Zealand registered ships, is already largely consistent with the Convention and only minor or technical changes are required, which are not expected to have any material impact or cost. Business New Zealand and the New Zealand Council of Trade Unions have strongly supported the Government s decision to pursue ratification of the Convention. 1 By volume, or around 86.7 percent by value. 4

5 Consultation with industry was undertaken in June All submissions supported New Zealand ratifying the Convention. No significant issues were raised. Minor and technical amendments will be needed to Maritime Rules and an Order in Council under the Maritime Transport Act 1994, if New Zealand ratifies the Convention. Nature and timing of proposed treaty action The Convention was adopted by the International Labour Organization (ILO) on 23 February 2006 and came into force internationally on 20 August ILO conventions are legal instruments which are subject to ratification by individual countries. Upon ratification, they create binding legal obligations on member States. Once Parliament has examined Cabinet s decision to ratify the Convention, it is proposed that amendments to Maritime Rules and an Order in Council under the Maritime Transport Act 1994 will be drafted to implement the Convention in New Zealand. Once parliamentary treaty examination is complete and implementing legislation is passed, New Zealand can ratify the Convention. The Convention would enter into force in New Zealand twelve months after the date on which its ratification has been registered (Article VIII). The Convention consolidates and revises 37 existing ILO maritime labour conventions adopted since 1920 (article X) and replaces them with a single, coherent instrument. New Zealand is party to 14 of these Conventions which would be denounced should New Zealand ratify the Maritime Labour Convention, These are listed below: Unemployment Indemnity (Shipwreck) Convention 1920 (No. 8) Placing of Seamen Convention 1920 (No. 9) Medical Examination of Young Persons (Sea) Convention 1921 (No. 16) Seamen s Articles of Agreement Convention 1926 (No. 22) Repatriation of Seamen Convention 1926 (No. 23) Officers Competency Certificates Convention 1936 (No. 53) Minimum Age (Sea) Convention (Revised) 1936 (No. 58) Food and Catering (Ships Crews) Convention 1946 (No. 68) Certification of Ships Cooks Convention 1946 (No. 69) Certification of Able Seamen Convention 1946 (No. 74) Accommodation of Crews Convention (Revised) 1949 (No. 92) Accommodation of Crews (Supplementary Provisions) Convention 1970 (No. 133) Prevention of Accidents (Seafarers) Convention 1970 (No. 134) Continuity of Employment (Seafarers) Convention 1976 (No. 145) 5

6 Application to Tokelau, the Cook Islands and Niue The Cook Islands and Niue have their own ship registries and are able to become party to the Convention in their own right. New Zealand ratifying the Convention will have no impact on the Cook Islands or Niue. Tokelau ships owners are able to register their ships as New Zealand ships and it does not have its own ship registry. However, Tokelauan ships rarely make international voyages and Tokelau does not have the capacity to undertake port state control. For this reason, officials do not believe that Tokelau will be affected by New Zealand ratifying the Convention. Officials will consult with Tokelau during the implementation of the Convention to ensure it is not impacted by New Zealand s ratification of the Convention. Reasons for New Zealand to become party to the Convention Summary of the Convention The Convention sets internationally agreed minimum standards for the provision of the health, safety and welfare of seafarers 2 on board ships. The Convention was developed over a number of years through negotiations between governments, shipping, worker and employer representatives to ensure that its provisions are sensible, pragmatic and reflect operating best practice. It represents internationally-accepted minimum standards that are designed to provide a level playing field for shipping, and strengthen the shipping industry. It is not expected to create any material costs for ship operators, or impact on shipping costs. The Convention is widely considered to be the fourth pillar of the most important maritime regulations covering international shipping. It complements three major conventions adopted by the International Maritime Organisation dealing with the safety and security of ships and protection of the marine environment, which have each been ratified by more than 150 countries, representing more than 99 percent of the world s merchant shipping fleet: the International Convention for the Safety of Life at Sea, 1974 (SOLAS) the International Convention on Standards of Training, Certification and Watchkeeping, 1978 (STCW) the International Convention for the Prevention of Pollution from Ships, 73/78 (MARPOL). The Convention would apply to foreign ships (excluding fishing vessels) entering New Zealand ports. It would also apply to approximately 31 New Zealand ships that are: New Zealand registered ships, excluding ships that navigate exclusively in restricted limit areas (enclosed water and inshore limits); 3 Of 200 gross tonnage and over 4, or smaller ships engaged in international voyages; and 2 Seafarers covered by the Convention are defined as any persons who is employed or are engaged or works in any capacity on board a ship to which this Convention applies. It covers all workers including cabin and cleaning personnel, bar staff, waiters, entertainers, singers, kitchen staff and casino personnel. 3 As defined and explained in Maritime Rule Part 20 Operating limits 4 As permitted under Article II (6) 6

7 Ordinarily engaged in commercial activities, excluding ships engaged in fishing or in similar pursuits. The Convention does not apply to fishing vessels. Fishing vessels are covered by a parallel convention 5, which is not yet in force. However, the government has committed to a range of measures to ensure the fair treatment of crews on fishing vessels and vessel safety. For example, it will be compulsory for all foreign charter fishing vessels to be reflagged as New Zealand ships by 2016, bringing them under New Zealand law to ensure appropriate health, safety and labour conditions for crew, and sustainable and lawful fishing practices. Status of the Convention The Convention is being strongly championed by international groups, such as the ILO and the International Maritime Organization. It is also being championed in the Asia Pacific region by Australia 6, and the Tokyo Memorandum of Understanding on Port State Control in the Asia Pacific Region (Tokyo MOU 7 ). The Convention is expected to achieve near universal membership worldwide. Almost all of the largest shipping nations, representing almost 90 percent of the world s fleet, are either party to the Convention, or are working towards ratification, including: All the five major independent registries, which account for almost 50 percent of the world s ships (Panama, Liberia, Marshall Islands, Bahamas, Malta) Hong Kong Singapore The United Kingdom Greece Japan Italy Norway Germany Republic of Korea Denmark India Netherlands Russian Federation Malaysia France Philippines Belgium Vietnam Canada Spain Sweden Several like-minded countries, and Pacific nations have become members, including: 5 Work in Fishing Convention, 2007 (No. 188). As at 1 October 2014, there are 5 members to this convention (Argentina, Bosnia and Herzegovina, Congo, Morocco, and South Africa). 6 Australia has signed an accord with the International Labour Organization and the International Maritime Organization to pursue the widespread and rapid membership of the Convention in the Asia Pacific region

8 Canada Australia South Africa Fiji 8 Samoa Tuvalu All European Union nations are members or becoming members, alongside directives from the European Commission ensuring universal implementation. Most Organisation for Economic Co-operation and Development (OECD) nations, excluding land locked nations, are members or becoming members. Most major nations in the Asia-Pacific region are members or becoming members. Policy objectives protecting trade access and the reputation of New Zealand s goods Ratifying the Convention will expand New Zealand s jurisdiction to inspect and verify that foreign ships carrying New Zealand s goods treat their crew fairly and in accordance with internationally accepted standards. Ratification supports the objective of a transport system that maximises economic and social benefits for New Zealand and minimises harm. It supports the outcome of efficient and reliable trade links for getting goods to international markets. Advantages and disadvantages to New Zealand ratifying the Convention The advantages of New Zealand ratifying the Convention outweigh the disadvantages. The Convention is the only mechanism available that will give New Zealand jurisdiction to inspect labour and welfare conditions on foreign ships serving New Zealand. Advantages to New Zealand ratifying to the Convention Protect the reputation of New Zealand s exports and trade New Zealand has only a small merchant shipping fleet, which operates almost exclusively within New Zealand. New Zealand is reliant on foreign shipping to carry its imports and exports. Around 890 foreign ships, including cargo vessels and cruise liners, make around 2,250 visits to New Zealand a year, with around 6,000 port stops. If it is not a Party to the Convention, New Zealand has limited oversight or jurisdiction over working conditions on foreign ships serving New Zealand trade. Negative international publicity from potential allegations of the mistreatment of labour on foreign ships carrying New Zealand goods has the potential to damage the reputation of, demand for, and value of New Zealand exports and trade. The potential for these negative consequences has been demonstrated in the New Zealand fishing industry. A Report on the Ministerial Inquiry into the use and operation of foreign chartered fishing vessels, February 2012, (the Report) stated that international criticism surrounding the employment conditions on foreign fishing vessels chartered in New Zealand was not limited to the foreign owners and operators, but also targeted the New Zealand companies using them. The Report stated that such publicity has the potential to damage New Zealand s reputation, the demand for New Zealand exports, and the continued access to markets. 8 Fiji ratified the Convention in January 2013 but it is not yet in force. 8

9 International merchant shipping, including in Australasia, also has a long history of a minority of ships that mistreat and endanger those that serve on them. An inquiry into ship safety by Australia s House of Representatives Standing Committee on Transport, Communications and Infrastructure produced a series of reports titled Ships of Shame between 1992 and The reports conclude that sub-standard ships and practices still exist; crews are still being beaten, harassed, abused and deprived of basic human rights. The reports detail the extent of the maltreatment reported to the committee, including: the denial of food and the provision of inadequate food bashing of crew members by ships officers maintenance of two pay books, one for official records of International Transport Federation (ITF) levels of pay, the other for the real lower level of pay under or non-payment of wages and overtime inadequate accommodation and washing facilities sexual molestation and rape depriving access to appropriate medical care. The committee reported that sub-standard ships operated by an irresponsible owner, worked by crews that are poorly led, inadequately trained, under paid and abused, lowers morale to a level where such ships pose a grave threat to the lives of seafarers, property and the marine environment. Australia s history and the issues identified in the Ships of Shame reports were a key reason behind Australia ratifying the Convention in Ratifying the Convention will expand New Zealand s jurisdiction to allow it to inspect and verify that foreign ships carrying New Zealand s goods treat their crew fairly and in accordance with internationally accepted standards. This will protect the reputation of New Zealand exports, given that more than 99 percent 9 of New Zealand s export goods are transported by these foreign ships. Safety benefits The Convention is intended to reduce the risks of human errors resulting from crews being fatigued, malnourished, or under other undue pressures that may lead to maritime accidents. Adherence to the Convention standards could assist in minimising the number of accidents and incidents in New Zealand waters and the cost of responding to emergencies. Advantages for New Zealand ships travelling overseas Maritime labour certificates will enable New Zealand ships to easily demonstrate compliance to foreign authorities who are party to the Convention, should it be required. This may result in time and cost savings for the few New Zealand ships that travel abroad through the avoidance of foreign authorities undertaking inspection and authorisation By volume, or around 86 percent by value. 10 Including for dry dock, maintenance and repair. 9

10 Disadvantages to New Zealand ratifying the Convention The cost, impacts and risks of ratifying the Convention are minimal, because: the Convention was developed in partnership with worker and shipping interests to ensure that the Convention s minimum standards reflect current industry practice and can be easily met by most shipowners New Zealand law, which applies to New Zealand registered ships, is already largely consistent with the Convention and only minor or technical changes are required, which are not expected to have any material impact or cost. There would be some inspection and monitoring costs incurred by the estimated 31 New Zealand ships covered by the Convention, to ensure New Zealand ships comply with the requirements of the Convention, as implemented in national legislation. These costs will be low as they would require only marginal additional inspection time, ship time, and associated costs above the normal costs associated with these functions, as they are required without the ratification of the Convention. More detail regarding regulatory impacts and compliance costs is provided in the following sections. Legal obligations that would be imposed on New Zealand by the treaty action The Convention has three purposes: to lay down, in its Articles and Regulations, a firm set of rights and principles; to allow, through the Code, a considerable degree of flexibility in the way Members implement those rights and principles; and to ensure that the rights and principles are properly complied with and enforced by member States. The Convention comprises three different but related parts: the Articles, the Regulations and the Code. The Articles and Regulations set out the core rights and principles while the Code provides the details for their implementation. Member States are required to follow the mandatory Articles, Regulations and Standards, however, Guidelines are nonmandatory. The Articles of the Convention set out the fundamental rights and principles, seafarers employment and social rights and implementation and enforcement responsibilities of member States. A summary of the key Articles outlining the obligations of the Convention are provided below: To secure the rights of all seafarers to decent employment by giving effect to provisions in the law. Countries should cooperate with one another to ensure the Convention is implemented and enforced. (Article I) Ensure New Zealand law is consistent with the fundamental rights to freedom of association and the right to collective bargaining; removing forced or compulsory labour; abolishing child labour and discrimination in respect of employment and occupation (Article III) Ensure that every seafarer has the right to: A safe and secure workplace 10

11 Fair terms of employment Decent working and living conditions on board ship Health protection, medical care, welfare measures and other social protection Ensure that seafarers employment and social rights are implemented in accordance with the Convention. This can be through legislation, collective bargaining, in practice or other measures (Article IV) A summary of the details of the Regulations and parts A and B of the Code and how they would be implemented in New Zealand is provided in the next section on Implementation. If New Zealand is unable to implement the rights and principles in the Part A of the Code, it may implement these rights and principles in other ways, such as laws, regulations or measures which are substantially equivalent to the provisions. An action will be considered substantially equivalent if New Zealand can show that the law or practice will give effect and achieve the purpose of the provision. (Article VI(3)). Reservations There is no provision in the Convention allowing for parties to make a reservation upon ratification. Dispute resolution Except for the non-mandatory guideline mentioned above, there is no specific provision in the Convention regarding dispute resolutions covering all provisions and regulations. However, the Governing Body of the International Labour Office shall keep the Convention under continuous review. Any matters arising will be dealt with by a committee consisting of two representatives nominated by the Government of each Member of the Convention, and representatives of Shipowners and Seafarers (Article XIII). Complaints may be filed against Members of the Convention for non-compliance with the Convention. This can be undertaken by other Members, a delegate to the International Labour Conference or the Governing Body in its own capacity. A formal complaint is the most serious and visible manifestation of ILO action and would have reputational consequences. Implementation of the Convention The Regulations and the Code of the Convention are organised into general areas under five titles: Title 1: Minimum requirements for seafarers to work on a ship Title 2: Conditions of employment Title 3: Accommodation, recreational facilities, food and catering Title 4: Health protection, medical care, welfare and social security protection Title 5: Compliance and enforcement 11

12 ILO supervisory system If New Zealand ratifies the Convention it will be required to undergo a formal review by the Committee of Experts on the Application of Conventions and Recommendations (Committee of Experts). One year following the Convention s entry into force, New Zealand will be obliged to submit a detailed report to the Committee of Experts outlining measures it has taken to implement the Convention. This report should indicate whether New Zealand s national laws aligns with the Convention and what action has been taken to ensure the Convention has had a practical impact. 11 Once the Convention has been ratified, the Committee of Experts can issue unpublished direct requests to the Government. These requests may point to apparent problems in the application of the Convention or raise technical questions with New Zealand s implementation of the Convention. The Committee of Experts will give New Zealand time to respond to these issues before any comments are published in the Committee of Experts annual report and presented at the International Labour Conference. The reports of both the Committee of Experts and the Conference Committee are publicly accessible on the ILO website. As such, Governments and the social partners 12 have an even greater incentive to solve problems in the application of standards in order to avoid critical comments by these bodies. Officials have consulted with the ILO regarding the implementation of the Convention. The ILO have assessed the Convention s compliance against New Zealand laws, policy and practice. Subject to review, additional technical requirements may be required. As New Zealand s legislative framework is consistent with the Convention, any suggested amendments would be changes to practice or to maritime rules. No substantive legislative change will be required. Key elements for change Officials have identified a number of issues where New Zealand law, policy and practice require changes, and proposed solutions to those issues, if New Zealand were to ratify the Convention. Once Parliament has examined Cabinet s decision to ratify the Convention, amendments to Maritime Rules and an Order in Council under the Maritime Transport Act 1994 will be drafted to implement the Convention in New Zealand. To comply with the Convention, key changes to the Maritime Rules include: Prohibiting of night work for seafarers under the age of 18 (with the exception of training that must be undertaken at night). Extending the requirement for medical certificates to a broader range of seafarers. Regulating the minimum hours of rest and record keeping for any other duties undertaken on account of the ship. 11 The Committee of Experts it is composed of 20 eminent jurists appointed by the Governing Body of the ILO for three-year terms. The Experts come from different geographic regions, legal systems and cultures. The Committee s role is to provide an impartial and technical evaluation of the state of application of international labour standards. 12 Business New Zealand and the New Zealand Council of Trade Unions, as New Zealand s employer and employee representatives 12

13 Ensuring frequent document inspections are carried out on ships regarding food preparation areas and food supplied. Ensuring Maritime New Zealand has the authority to enforce the Convention on foreign ships entering New Zealand. Expanding inspection and compliance requirements to include certification and inspection in accordance with the Convention. Further information regarding the above Maritime Rule amendments is outlined in the table below. The table outlines: the requirements in the Regulations and Codes of the Convention where New Zealand law, policy and practice is considered to be consistent with the Convention areas where there would be new requirements or law changes if New Zealand were to ratify the Convention. 13

14 Title 1: Minimum requirements for seafarers to work on a ship Regulation Minimum Age (1.1) Medical certificate (1.2) Is it an existing obligation, an update, or a new obligation? Existing obligation (ILO no. 58) The Convention requires that employment, engagement or work on board a ship of any person under the age of 16 shall be prohibited. The Convention requires night work to be prohibited for seafarers under the age of 18. The Convention requires seafarers under 18 to be prohibited from work that is likely to jeopardise their health or safety. Update to existing obligation (SOLAS, ILO No.16) The Convention requires that seafarers hold a medical certificate to show they are medically fit to perform their duties. Existing obligations only relate to seafarers undertaking any duties What legislative change is needed? New Zealand legislation prohibits the employment of seafarers of an age that requires them to be enrolled at a school which is up to the age of 16 years. Maritime Rules amendment A Maritime Rules amendment will prohibit night work for seafarers under the age of 18, with the exception of training that must be undertaken at night. This amendment is consistent with existing regulatory and policy frameworks 13, and consultation raised no concerns apart from a provision for training. The specific details of the Maritime Rules amendment will be subject to the usual Rules amendment and consultation processes. New Zealand legislation currently restricts seafarers under the age of 18 from working as a trimmer or stoker as per the ILO convention Minimum Age (Trimmers and Stokers), 1921, no. 15. Maritime Rules amendment Maritime Rules may have to be amended to extend the requirement for a medical certificate to a broader range of seafarers. This amendment is consistent with existing regulatory and policy frameworks, and consultation raised 13 The Health and Safety in Employment Regulations 1995 restrict young people under 15 from working in dangerous workplaces (such as manufacturing, construction sites, tree felling), and from doing hazardous work (such as working with machines and mobile plant, and heavy lifting). They also restrict people under 16 from night work. 14

15 Training and qualifications (1.3) Recruitment and placement (1.4) requiring a qualification for working on New Zealand ships which are International Convention for the Safety of Life at Sea (SOLAS) ships 14, and for all seafarers under the age of 18 (ILO no.16). Update of existing obligation (ILO no. 53) The Convention requires that seafarers be trained or certified as competent to perform their duties on board ship, and must have successfully completed training for personal safety on board ship. Update of existing obligations (ILO no. 9) The Convention sets requirements for seafarer recruitment and placement services, and requires that they be provided without charge to the seafarer. no concerns. The specific details of the Maritime Rules amendments would seek to minimise the regulatory impact, and be subject to the usual Rules amendment and consultation processes. New Zealand s training and qualification requirements and safe ship management practices are consistent with the Convention. New Zealand law is broadly consistent with this requirement. Under the Maritime Transport Act 1994, seafarer recruitment and placement services are prohibited from charging seafarers for their services. The Convention requires that ships that use overseas recruitment services have a system in place to verify that these services meet the Convention s standards. Maritime Rule amendment A combination of Maritime Rule amendments and administrative means will ensure consistency with the Convention. 14 SOLAS ships include foreign going passenger ships, non-passenger ships of 500 gross tonnage or more, and other New Zealand ships of 45 metres or more in length which proceed beyond restricted limits. 15

16 Title 2: Conditions of employment Regulation Seafarer s Employment agreements (2.1) Wages (2.2) Hours of work and rest (2.3) Is it an existing obligation, an update, or a new obligation? Existing obligation (ILO no.22) The Convention requires that all seafarers have an employment agreement, and outlines what the agreement should cover. The Convention requires that seafarers be paid regularly and in full, at no greater than monthly intervals, in accordance with their employment agreements. Measures should be taken to provide seafarers the means to transmit all or part of their earnings to their families or dependants. Wage deductions are not permitted for food, water, or for board and lodgings. Update to existing obligations The Convention requires that the minimum hours of work and rest be regulated for work on account of the ship, and that records of seafarers daily hours of work or rest be kept and endorsed by the ship s master and the seafarer. Existing obligations only relate to minimum hours of rest and record keeping for navigational and safetycritical roles on ships in accordance with International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW). What legislative change is needed? New Zealand legislation governing the provision of employment agreements is consistent with the Convention. Maritime Rules amendment New Zealand legislation relating to payment of wages is broadly consistent with the Convention. A Maritime Rules amendment would make explicit that employers would not be able to make wage deductions for board and lodgings for seafarers (who have no alternatives). This is consistent with currency policy and practice, and the intent of existing law. Maritime Rules amendment Maritime Rules may have to be amended to regulate the minimum hours of rest and record keeping for any other duties undertaken on account of the ship. This amendment is consistent with existing regulatory and policy frameworks, and consultation raised no concerns. The specific details of the Maritime Rules amendments would seek to minimise the regulatory impact, and be subject to the usual Rules amendment and consultation processes. 16

17 Annual Leave (2.4) The Convention requires that seafarers are given paid annual leave, with a minimum of 2.5 calendar days of leave per month of employment (30 calendar days a year). The Convention prohibits agreements to forgo annual leave for payment. New Zealand law currently provides a minimum of four weeks paid annual leave (28 calendar days a year). In practice, and confirmed through consultation, New Zealand seafarers are granted work one week on and one week off. This is provided for in collective agreements, which cover all seafarers. Officials are confident that New Zealand can demonstrate compliance through citation of the collective agreements, and their strong coverage 15. There is a risk that the ILO recommends that compliance with this provision is demonstrated through regulation. Maritime Rule amendments could provide such a regulation. This would be out of step with current regulatory and policy settings, which stipulate the minimum annual leave requirements across all industries and sectors. A Maritime Rule amendment is not the preferred approach at this stage. New Zealand law is broadly consistent with the Convention. Officials are confident that New Zealand can demonstrate compliance through citation of the collective agreements, and their strong coverage As permitted under Article IV (5), and Article VI (3) of the Convention. 16 As permitted under Article IV (5), and Article VI (3) of the Convention. 17

18 Repatriation (2.5) 2014 Amendments to Repatriation (2.5) The Convention requires that seafarers be granted appropriate shore leave. Update to existing obligations (ILO no. 23) The Convention sets out the circumstances in which seafarers are entitled to repatriation, at no cost to themselves amendment new obligation This amendment was adopted by the Special Tripartite Committee and will come into force in This amendment sets requirements to a rapid and effective financial security system to assist seafarers employed or engaged or working in any capacity on a ship flying the flag of the Member in the event of abandonment. This system shall cover outstanding wages and other entitlements up to four months, the cost of repatriation, necessary maintenance including adequate food, clothing, accommodation, necessary medical care and other reasonable costs or charges arising from the abandonment. This requirement is met in practice. Consultation did not raise any significant issues surrounding this requirement. Possible Maritime Transport Act amendment (in due course) Amendment to the Maritime Transport Act would not be required to implement this requirement in New Zealand. However, as best practice, a minor update to the Act could clarify that seafarers have a right to repatriation if either the ship-owner or the seafarer terminates their employment agreement, or if the seafarer s employment agreement expires while they are abroad. This change is only relevant to New Zealand ships undertaking international travel. Possible Maritime Rule amendment (in due course) No change New Zealand legislation relating to payment of wages is broadly consistent with the Convention. These amendments do not enter into force until It is anticipated that the industry s insurance cover, provided by international agencies, will be amended to meet these requirements. A verification of the insurance held by New Zealand ships, or a Maritime Rule amendment specifying the insurance requirements may be required in due course. 18

19 Seafarer s compensation for the ships loss or foundering (2.6) Manning levels (2.7) Careers development opportunities (2.8) Existing obligation (ILO no. 8) The Convention requires that seafarers be entitled to adequate compensation in the case of injury, loss or unemployment arising from the ship s loss or foundering. The Convention requires that ships have a sufficient number of seafarers employed on board to ensure that ships are operated safely and efficiently, taking into account concerns about fatigue and the nature and conditions of the voyage. Existing obligation (ILO no. 145) The Convention requires that there be national policies aimed at strengthening the competencies, qualifications and employment opportunities of seafarers. New Zealand legislation and public services are consistent with the Convention. New Zealand legislation governing minimum crewing levels is consistent with the Convention. New Zealand qualifications frameworks are broadly consistent with the Convention. 19

20 Title 3: Accommodation, recreational facilities, food and catering Regulation Accommodation and recreational facilities (3.1) Food and catering (3.2) Is it an existing obligation, an update, or a new obligation? Update to existing obligation (ILO no. 92 and 133) The Convention sets minimum standards for the provision of accommodation and recreational facilities, including the size of rooms, heating and ventilation, noise and vibration, sanitary and related facilities, lighting, and hospital accommodation. Existing obligation (ILO no. 68) The Convention requires that ships carry food and drinking water of appropriate quality, nutritional value and quantity, without charge. It also requires that regard be given to religious requirements and cultural practices of seafarers. Update to existing obligations (ILO no. 68) The Convention requires that frequent document inspections are carried out on ships regarding food preparation areas and food supplied. What legislative change is needed? Maritime Rules amendment Minor technical changes to existing Maritime Rules will be required. Most of the requirements relate to ship design, which will only apply to new ships built after New Zealand ratifies the Convention, so will have no impact on existing New Zealand ships. This amendment is consistent with existing regulatory and policy frameworks, and consultation raised no concerns. New Zealand legislation is consistent with the Convention. Maritime Rules amendment An update of Maritime Rules will clarify this requirement. 20

21 Existing obligation (ILO no. 69) The Convention requires that ships cooks with the responsibility for food preparation be trained and qualified. On ships that do not require a qualified cook, anyone processing food in the galley must be trained or instructed in such areas, including on food and personal hygiene and handling and storage of food on board ship. The convention prohibits seafarers under the age of 18 working as a ship s cook (Standard A3.2.8). In New Zealand, cooks on vessels of over 1,000 gross tonnage are required to have appropriate training in line with the Convention. For smaller vessels, guidance material may need to be developed to inform the development of operator s safe operational plans to ensure that these matters are managed as required. This is not prohibited under current New Zealand legislation. However, in practice, and confirmed through consultation, the qualification and training requirements for cooks precludes seafarers under 18 working as a ship s cook. Officials are confident that New Zealand can demonstrate compliance through citation of training requirements and confirmation from industry As permitted under Article IV (5), and Article VI (4) of the Convention. 21

22 Title 4: Health protection, medical care, welfare and social security protection Regulation Medical care on board ship and ashore (4.1) Shipowners liability (4.2) 2014 Amendment to Shipowners liability (4.2) Health and safety protection and accident prevention (4.3) Is it an existing obligation, an update, or a new obligation? The Convention requires adequate measures for the protection of seafarers health, and access to prompt and adequate medical care. The Convention requires financial assistance and support for seafarers as a result of sickness, injury or death amendment - new obligation This amendment was adopted by the Special Tripartite Committee and will come into force in This amendment sets minimum requirements for the financial security system providing such compensation as regards contractual claims, defined as claims which relate to sickness, injury or death occurring while the seafarer is serving under a seafarers employment agreement or arising from employment under such an agreement. Existing obligation (ILO no. 134) The Convention requires national laws and regulations for the provision of safe and hygienic working conditions, occupational health and safety protection, and accident prevention on ships. What legislative change is needed? New Zealand legislation is consistent with the Convention, with employer responsibilities outlined in the Maritime Transport Act 1994, and with the provision of ACC and the public health system. New Zealand legislation and practice is consistent with the Convention, with employer responsibilities outlined in the Maritime Transport Act 1994, and with the provision of ACC and the public health system. New Zealand s regulations are broadly consistent with this amendment. New Zealand work health and safety, and maritime legislation is consistent with the Convention. 22

23 Access to shore-based welfare facilities (4.4) Social Security (4.5) The Convention requires shorebased welfare facilities, if they exist, to be accessible to all seafarers, and for the regular review and promotion of the development of such facilities to meet the needs of seafarers. The Convention requires social security protection for seafarers that is no less favourable than what is provided to shore workers. New Zealand has 11 shore-based welfare facilities, covering all international ports except Lyttelton. The Seafarers Welfare Board for New Zealand coordinate these facilities. New Zealand legislation is consistent with the Convention, with seafarers treated the same as other workers. 23

24 Title 5: Compliance and enforcement Regulation Flag state responsibilities (5.1) Is it an existing obligation, an update, or a new obligation? Update of existing obligation The Convention requires members to inspect and certify the labour conditions on its ships of 500 gross tonnage and over, and travelling internationally or operating overseas, with certificates lasting up to five years, with an interim inspection between years two and three. There is already a certification and inspection regime in place for New Zealand ships of 500 gross tonnage or over, which are engaged in international voyages, or operate in a foreign country in accordance with International Maritime Organization conventions to which New Zealand is a party. The Convention requires members to have an effective and coordinated system of regular inspections, monitoring and other control measures to ensure that its ships comply with the requirements of the Convention, as implemented in national legislation, with inspections at least every three years. What legislative change is needed? Maritime Rules amendment A minor maritime rules amendment would expand the existing inspection and certification requirements to include certification and inspection in accordance with the Convention. This amendment is consistent with existing regulatory and policy frameworks, and consultation raised no concerns. Maritime NZ and the Ministry of Business, Innovation and Employment (MBIE) are considering how the two agencies can coordinate and cooperate in relation to the inspection and enforcement of legislation administered by MBIE. Maritime Rules amendment A minor maritime rule amendment may be required to include the Convention into the existing inspection regime. Existing inspections and other monitoring measures will ensure that all New Zealand ships (other than fishing vessels) of greater than 200 gross tonnage, or smaller ships travelling internationally, comply with the national legislation that implements the Convention. Maritime New Zealand and the Ministry of Business, Innovation and Employment (MBIE) are considering how the two agencies can coordinate and cooperate in relation to the inspection and enforcement of legislation administered by MBIE. 24

25 Port state responsibilities (5.2) The Convention requires that ships have on-board procedures for the fair, effective and expeditious handling of seafarer complaints. The Convention requires New Zealand to hold official inquiries into any serious marine casualty, leading to the injury or loss of life involving a New Zealand ship. The Convention requires members to have an effective port state inspection and monitoring regime to ensure that working and living conditions for seafarers on ships entering the ports of the member meet the minimum standards of the Convention. The Convention enables any foreign ship calling into a member s port to be subject to inspection in accordance with the Convention. New Zealand already undertakes port state control inspections for foreign ships in regard to other international Conventions. New Zealand employment legislation requires New Zealand employment agreements (collective or individual) to contain provisions regarding employment relationship problems and how these will be dealt with and resolved. Official inquiries and investigations into serious marine casualties leading to injury or loss of life are carried out by Maritime New Zealand and/or the Transport Accident Investigation Commission. Amendment to an Order in Council 18 under the Maritime Transport Act Maritime Rules amendment A minor and technical amendment by Order in Council and Maritime Rule amendment would be needed to ensure Maritime New Zealand has the authority to enforce the Convention on foreign ships entering New Zealand ports. New Zealand already has a port state control inspection and monitoring regime. It would be expanded to include enforcing the Maritime Labour Convention, The Maritime Transport Act (Conventions) Order 1994 provides a schedule of conventions that are relevant to parts 2 to 15 of the Maritime Transport Act This schedule would need to be amended to include the Convention. 25

26 Labour supply responsibilities (5.3) The Convention requires that seafarers on ships coming into New Zealand ports have the right to report complaints, with follow up and investigations where appropriate, and appropriate steps taken to safeguard confidentiality. The Convention requires an inspection and monitoring system for any private recruitment and placement services, whose primary purpose is the recruitment and placement of seafarers, or which recruit and place a significant number of seafarers. A process for investigating any complaints is also required. Maritime New Zealand has a procedure for handling complaints. All complaints are logged and are treated as confidential. There are currently no services of this nature in New Zealand. 26

27 Economic, social, cultural and environmental costs and effects of the treaty action There are no material economic, social, cultural and environmental costs and effects of New Zealand ratifying the Convention. There are small additional compliance costs which are described in the following section. The costs to New Zealand of compliance with the treaty The Convention would apply to foreign ships (excluding fishing vessels) entering New Zealand ports. It would also apply to approximately 31 New Zealand ships that are: New Zealand registered, or foreign registered and operating in New Zealand, excluding ships that navigate exclusively in restricted limit areas (enclosed water and inshore limits) 19 of 200 gross tonnage and over 20, or smaller ships engaged in international voyages ordinarily engaged in commercial activities, excluding ships engaged in fishing or in similar pursuits. Regulatory compliance costs The main implications for the 31 New Zealand ships would be regulatory changes requiring: medical certificates for a broader range of seafarers, perhaps all those undertaking work on account of the ship, rather than just for duties requiring a qualification for working on larger ships, and for young persons minimum hours of rest and record keeping requirements for a broader range of seafarers, to cover all duties undertaken on account of the ship, rather than just engine room and watchkeeping duties night work to be prohibited for seafarers under the age of 18 ships that use recruitment services to have a system in place to verify that these services meet the Convention s standards, for example: that the service holds a certificate of compliance minor or technical changes relating to repatriation, guidance on food preparation and the inspection of food preparation areas, and the construction design of new ships. Additional medical certificate requirements may result in small additional cost, and time cost to affected seafarers, or their employers. Medical certificates are current for two years, at a cost of around $220, and take around one hour. Additional minimum requirements for hours of rest are expected to reflect operating best practice and so are not expected to impact on productivity or labour requirements for most New Zealand vessels. No material costs or impacts for seafarers, shipowners or ship operators are expected from the other legislative changes. 19 As defined and explained in Maritime Rule Part 20 Operating limits 20 As permitted under Article II (6) of the Convention 27