The ILO Maritime Labour Convention 2006 and the Worsening Exploitation of Seafarers under the Flag of Convenience System.

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1 The ILO Maritime Labour Convention 2006 and the Worsening Exploitation of Seafarers under the Flag of Convenience System. By EDWIN DELA CRUZ NUPL and ISAC Philippines There are more than 1,500,000 seafarers worldwide, manning 89,464 ships with a total 1.75 Billion in Dead Weight Tonnage. 1 Seaborne shipment in 2014 reached up to 9.84 billion tons which accounts for four fifths of the total world merchandise trade. 2 Around 55% of the ocean going vessels are flying Flags of Convenience,(FOC). Shipowners from the United States, Japan, Western Europe and other advanced capitalist countries register their ships in small poorer countries to cut cost, avoid strict labor, tax, safety and envioronmental regulations in their home country. The legal fiction is that the ship is governed by the laws of the state whose flag it flies, with slight exceptions when it is alongside the port of another state. Under the FOC system, beneficial owners of ships are allowed to use convenient registries in some poor countries. The top FOC s per Dead Weight Tonnage are Panama (350 Million DWT) Liberia (198 Million), Marshall Islands (140 Million) 3, Other FOC s are Antigua and Barbuda, Malta, Costa Rica, Honduras, Bahamas, Barbados, Belize, Bermuda, Bolivia, Cayman Islands, Cambodia, Comoros, Burma, Cyprus, Equatorial Guinea, Georgia, Gibraltar, Moldova, Mauritius, Lebanon, Jamaica, Mongolia, Netherlands Antilles, North Korea, Tonga, Sao Tome a Principe, St. Vincent & 1 UNCTAD Review of Maritime Transport Ibid. p UNCTAD Review of Maritime Transport 2013 as cited in ITF Seafarers Bulletin No 28/2014, p. 5.

2 the Grenadines, Vanuatu, French Second Registry, German Second Registry, and Sri Lanka. 4 The FOC or flag state, are not covered by the strict labor standards, safety requirements, environmental laws, tax and other laws of the home countries of the beneficial ownership of the ships. As such, FOC s allow the exploitation of seafarers with very low wages, minimal social protection, unmonitored safety requirements, exposure to the hazards of sea voyage, and lenient monitoring of seaworthiness of the ships. Many collisions, accidents, casualty, and violation of the workers rights of seafarers occur in these FOC s some of which are called rustbuckets or floating coffins by seafarers. To address the problems under the FOC system and to even the playing field, the ILO came out with the consolidated ILO Maritime Labour Conventio of 2006 (MLC 2006 for brevity) which came into effect on August 20, It was amended in 2014 and has been ratified by 72 countries, the last of which is Slovenia. Dubbed as the seafarers bill of rights, this new convention consolidates into a single coherent instrument 37 existing maritime labour conventions, various recommendations and adopts relevant provisions in other labour conventions. The main purpose is to ensure decent work for seafarers. The question is can the MLC 2006 really stem the evils of the FOC system? The main weakness of MLC 2006 is its division into two major parts. Part A or the mandatory standards, and Part B or the Guidelines that are merely directory or recommendatory. Take the case of the minimum wage for seafarers. A Subcommittee of the Joint Maritime Commission (JMC) of the International Labour Organization (ILO) has agreed on a 4 ITF Message to Seafarers Issue No. 18, 2011 pp. 37 to 40.

3 Resolution raising the minimum monthly basic wage figure for able seafarers from US$585 to US$592, as of 1 January 2015 and US$614, as of 1 January Under the MLC 2006 Guideline B monthly basic wages for able seamen shall not be less than the amount prescribed by the Joint Maritime Commission of the ILO. Unfortunately, this is a mere Guideline and it is not stated in the mandatory Standard. Thus there is no sanction against labor supplying states and flag states if they continue the practice of competing for the lower or lowest wages for seafarers. Even with the US 614 per month benchmark by the ILO, the Philippines, which supplies some 380,000 seafarers at a single point in time, still allows contracts where the basic salary for seafarers are even below US $500 per month. This is even worse for the Filipino crew of passenger and luxury liners who are paid as low as US$ 250 basic wage per month. There is also discrimination as according to the US Bureau of Labor Statistics, the average wage of a US rating, or an unlicensed deck or engine crew is US $ 26,676 per year as of In 2012, an ordinary seaman earned US $ 29,568 a year or $ per day. 7 Notice the discrepancy in the ILO benchmark in 2014 of US $ 585 for an Able Seaman per month, working in an FOC that may be owned by a US company like Disney or Aramco. In fact, the United States has not ratified the MLC Neither did Saudi Arabia, UAE, the gulf states, and some FOC s like 5 Feb 28, 2014 ILO: 6 Houstan Chronicle : 7 Ibid.

4 Cambodia, Myanmar, North Korea, and a labor supplying country Indonesia. Regarding the rust buckets or floating coffins, the very impressive provision of the MLC 2006 regarding the design and construction of vessels to ensure decent accommodation and recreational facilities to seafarers only apply prospectively, to vessels built after the entry into force of the convention. 8 According to the UNCTAD Report 2015, the average age of vessels in 2014 is years old. 9 Some % of vessels are more than 20 years old. The design and construction of these vessels are beyond the reach of the MLC As FOCs they will continue to put the lives of seafarers and passengers at risk, and pose serious threats to the environment. A novel intervention by the MLC 2006 is requiring flag states and shipowners to have a Maritime Labour Compliance to the convention showing that its national laws and requirements conform to the convention. The ships are also required to have a Maritime Labour Certificate that the living and working conditions set forth in the convention are followed in the ship and that the flag state and shipowners have valid Maritime Labour Compliance documents. This is a major challenge to the FOCs like Panama, Liberia, Marshall Islands, and other smallers ones who depend on the business of maintaining ship registries that are convenient and shipowner friendly. Their candid compliance to the convention is under global scrutiny. The burden is however shifted to the seafarers union, the labour inspectors in port state, and the labor supplying states like the Philippines to see to it that the MLC 2006 is implemented by these FOC s and their shipowning clients. 8 MLC 2006, Title 3, Reg UNCTAD 2015 op.cit. p. 33.

5 In the end, only an informed and vigilant awareness by the seafarers all over the world will ensure that the beneficent provision of the convention are followed and enhanced. Only their collective actions and solidarity will ensure that the decent work and level playing field promised by the convention, can be realized and the evils of the FOC system are confronted, systematically blunted and ultimately uprooted in the foreseeable future.

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