Maritime Labour Convention(MLC 2006)

• Shipping has evolved from being an international industry to the first truly global industry.

• Before 1920s: National industries in an international market. • After WW II: Mobile mass of production, open registries and market

liberalization. • Gradually globalization of technologies, capital and labor. • 1970/80s: Shipping, the first truly globalized industry

Shipping: A Truly Global Industry

• Maritime transport is the backbone of international trade and a key engine driving globalization.

• Around 80 % of global trade by volume and over 70 % by value is carried by sea

• Estimated 104,305 Commercial Ships (Above 100grt) with a total of capacity of 1,534 Million deadweight

• 42% of the world fleet is register on Panama, Liberia & Marshall Islands

• The average age per vessel is 21.9 years and per DWT 11.5 years

• Approximately 1.4 million seafarers daily serve on a worldwide fleet (Approx. 635,000 officers and 752,000 ratings )

THE SHIPPING MARKETFACTS

– No nationality requirements on crewing. – No/low tax business environment. – Liberal company legislation. – Many without national shipowners

• Creating a global capital and labor market in shipping.

• Facilitating the development of a globalized industry

Open Registries A Key Factor

• National Regulations: • Inadequacies

– National/ Regional regulations may be both ineffective and inefficient

– May be evaded. – Different national regulations cause inefficiencies and

competitive distortion.

• Global standards necessary to avoid a ‘race to the bottom’

• Globalized industry requires global regulations.

A Globalized Industry of Inadequacies

Ship Owners

• 297 ships attacked in 2012 by Pirates and 585 seafarers remain hostage onboard vessels

• The rate of suicide for international seafarers is triple that of shore workers, and they are 26 times more likely to be killed at work.

Market Reality 2012 & 2013

• The world seaborne trade grew Approx. by 3.5% in 2012.• Tonnage of the world fleet have grown 37% in the last 4 years

(Almost 10 per cent in 2012), as shipowners took delivery of vessels that had been ordered before the economic crisis began.

• Supply outstripped demand, the freight rates fell to unprofitable levels for most shipping companies.

CREW STANDARDS OF LIVING & SAFETY???

THE SHIPPING MARKETFACTS

• “Built in Spain, owned by a Norwegian, managed from Greece, chartered by the French, flying a Liberian flag, carrying an American cargo, crewed with officers from India and mixed ratings from Thailand, Indonesia and the Philippines.

But who takes the blame?”

• Between 2001 and 2010, 136 ships and 1,612 seafarers were abandoned. In 2009 alone, at the height of the global economic downturn, a total of 57 vessels were abandoned affecting 647 seafarers.

• Crew abandoned and without pay for months were common.

• Rust Buckets & Phantom Ships!

A Truly International Industry

“Out of Sight, Out of M

ind”

WHITE GROUP

Maritime Labor Convention (MLC 2006)

• - To establish decent working conditions.• - To establish fair competition among shipwoners.• - To establish member flag State, Port State and Labor Supply Countries'

responsibilities and obligations:– a.) Labor Conditions.– b.) Crewing.– c.) Social matters on it’s ships.

• ”No more favorable treatment” provision: to help ensure a level-playing field ( in the context of PSC measures)

August 2013!

• Existing Conventions:a.) Outdate and notreflective of current workingconditions.

b.) High level of details ledto compliance andenforcement problems.

c.) Relatively lowratification record.

Why develop the MLC 2006?• New Convention:

a.) provides accelerated and less costly amendment procedures for Code updates.b.) Level the playing field for the shipowners.

c.) Simplified Inspection and certification system.

d.) System to resolve complaints.

e.) Management based approach.

• The 37 maritime labour Conventions that are now consolidated (revised) by the MLC, 2006 will be gradually phased out as States that are now party to these Conventions ratify the new Convention.

• The substance of most*, of the existing 70 maritime labour instruments (Conventions and related recommendations) adopted by the ILO since 1920 have been updated and are now included - “consolidated” - in the new Convention.

(* The ILO Conventions on seafarers’ identity documents (Nos.108, 185), and on seafarers pensions (No.71) and one already shelved Convention (No.15) are not included in the new Convention.)

A Consolidated Convention

A Convention with Teeth!

The fourth pillar of Shipping

Definitions & Scope

• Applies to ALL SEAFARERS – seafarer categories are determined by competent authority with consultation with shipowners and seafarers organizations

• Applies to ALL SHIPS OF ANY TONNAGE in international voyages ordinarily engaged in commercial activities, unless expressly provided otherwise.

• Convention does not apply:– a.) Ships engaged in fishing or similar pursuits.– b.) Ships navigating exclusively in inland waters or waters within, or closely adjacent to.– c.) Ships navigating exclusively in sheltered waters or areas where port regulations apply.– d.) Ships of traditional build such as dhows or junks.– e.) Warships of Naval Auxiliaries

Articles of the MLC 2006

TITLESEach Title comprises a number of

Regulations, Standards and Guidelines relating to various topics

• - 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.

Structure of MLC 2006

Title 1. Minimum requirements for seafarers to work on a ship • Regulation 1.1 – Minimum age • Regulation 1.2 – Medical certificate • Regulation 1.3 – Training and qualifications • Regulation 1.4 – Recruitment and placement

Titles of MLC 2006

Titles of MLC 2006Title 2 Conditions of employment • Regulation 2.1 - Seafarers’ employment agreements • Regulation 2.2 - Wages • Regulation 2.3 - Hours of work and hours of rest • Regulation 2.4 - Entitlement to leave • Regulation 2.5 - Repatriation • Regulation 2.6 - Seafarers’ compensation for the ship’s loss or foundering • Regulation 2.7 - Manning levels • Regulation 2.8 - Career and skill development and employment

opportunities for seafarers

Titles of MLC 2006Title 3 Accommodation, recreational facilities, food and catering • Regulation 3.1 - Accommodation and recreational facilities • Regulation 3.2 - Food and Catering

Title 4 Health protection, medical care and social security protection • Regulation 4.1 - Medical care on board ship and ashore • Regulation 4.2 - Shipowners’ liability • Regulation 4.3 - Health and safety protection and accident prevention • Regulation 4.4 - Access to shore-based welfare facilities • Regulation 4.5 - Social security

Titles of MLC 2006Title 5 Compliance and Enforcement • Introductory paragraphs • Regulation 5.1- Flag State responsibilities • Regulation 5.2 - Port State responsibilities • Regulation 5.3 - Labour-supplying responsibilities

In addition, Title 5, Part A of the Code has three Appendices and Part B has one appendix.

The Panama Situation• Law 2 of January 6th, 2009 – Panama• MLC 2006 Ratified Jan 29th, 2009• Shipowners under Panama are currently waiting in

anxiety for the adaptation of the Law 2 of January 6th, 2009

• Three Social Security Branches to be properly defined? Only Medical Care have been stipulated so far.

• Limit Compensation for the ship’s loss or foundering?

• Limit of Shipowner Liability?• The future of the Current Crew Accommodation

Certificate still uncertain

The Panama SituationSeaman’s Club

MLC 2006 Reg. 4.4Local Ports (PPC, MIT, i.e) are not allowing access to the port facility to representatives of seafarers’ welfare and labor organizations due alleged security threats (ISPS Code)

ISPS Code A/16.3.15 & B/16.8.14; MSC/CIRC 1112

Bldg. 770, Balboa, Panama

A Convention with Teeth!The fourth pillar of Shipping

No More favourable TreatmentDecent Working Conditions

Flag, Port State & Labor Supply Countries Clear Responsibilities

Thank you for your attention