Speaking to Seatrade Maritime News, Cotton general-secretary of the ITF, said that the global union had “always been very active in ensuring seafarers get their payments” and that the issue was “probably heating up a little bit”.
“We’re also concerned that the market is kind of reflecting the global economic situation and there’s been a downturn and a lot ships are struggling to get viable freight rates. The normal thing for us is that the ITF inspectors are on alert for the non-payment of wages, which is normally an indicator that a certain company has got cash flow problems,” he explains.
With the reality that some companies are running into severe financial difficulties urges owners to sit down and talk with the ITF and local affiliate unions to try and “take positive steps to manage and support the situation”.
“We’re keen to sit down with employers talk about how we make sure there is a smooth transition to make sure the seafarers get their entitlements.”
The alternative is what Cotton describes as a “free-for-all” where everyone loses.
The last thing you need he says is like in some cases in the past where crews are not paid and an “ambulance chasing” lawyer is engaged to arrest the ship involved. “If you’re trying to restructure yourself you might not want 25 ships around the world under arrest and being sold at auctions for a fraction of the price, so for us its about making sure the seafarer gets looked after.”
An addition to arsenal of the ITF inspectors in recent years has been the Maritme Labour Convention (MLC). While the MLC has not stop non-payment cases the ITF sees it as a safety net. “The MLC gives an inspector very concrete rights for the seafarer to support a non-payment case,” Cotton says.
It is also anticipated P&I insurance abandonment cover coming under the MLC next year will help. However he also notes: “We have found in the past sometimes if a shipowner is in trouble one of the things they’ll stop paying is their P&I cover.”
On shipping’s biggest bankruptcy in recent times – Hanjin Shipping – the main problem the ITF encountered was seafarers from the company’s vessels being denied shore leave. “Our Korean affiliate the FKSU (Federation Korean Seafarers Union) have been working extremely closely with the company and the government to ensure that the seafarers are cared for and all their entitlements are settled, so as far as we know its been very professionally done,” Cotton says.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
