SHIPPING AND THE LAW 2013MARITIME LABOUR CONVENTION

INTRODUCTION

• What is the Maritime Labour Convention (MLC)• MLC - Clarification and FAQs• P&I Cover/Work of the IG• MLC - Who Benefits? - Convention Creep

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WHAT IS THE MARITIME LABOUR CONVENTION?

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MLC 2006

MLC

• For whose benefit?

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MLC 2006

• Protect shipboard conditions of crew employment Accommodation Recreational facilities Food and catering Medical health Hours of work Repatriation

MLC 2006

• The ILO has advised States to operate leniency in the first 12 months

MLC 2006

• MLC is the “fourth pillar” of the international regulatory regime for quality shipping

• The MLC is seen as the cornerstone of good employment practice

MLC - CLARIFICATION AND FAQ’S

Question: What ships need to comply with the MLC?

Answer: All ships over 500 GT that engage in international voyages must be certified as being MLC compliant. This requirement however does not apply to ships which navigate exclusively in inland waters

MLC – FAQ’S

Question: Does the MLC apply to all seafarers?

Answer: Yes

MLC – FAQ’S

Question: Who is the “ship owner” under the MLC?

Answer: The ship owner is defined as the Owner of the ship or another organisation or person, such as the Manager, Agent or Bareboat Charterer who has assumed the responsibility for the operation of the ship from the Owner and who on assuming such responsibility, has agreed to take over the duties and responsibilities imposed on ship owners in accordance with this convention

MLC – FAQ’S

Question: When will a ship be inspected?

Answer: Any ship calling at the port of a state which has ratified the MLC may be inspected by PSC for compliance with the MLC’s requirements, irrespective of whether the ships’ flag state has ratified the MLC

MLC – FAQ’S

Question: Who will be considered as “crew” under the terms of the MLC?

Answer: Under MLC seafarers are defined as any persons who are employed to work in any capacity on board ships covered by the MLC

MLC – FAQ’S

Question: What is the position where Clubs exclude cover for crew risks?

Answer: Where it is apparent from the Certificate of Entry that crew risks are excluded, a ship owner must then demonstrate to the flag state that there is alternative financial security in place

MLC – FAQ’S

Question: What can an Owner do if a ship is detained?

Answer: It will depend on the flag state or the port where the vessel is being held up and the nature of the detention

MLC – FAQ’S

MLC – FAQ’S

A review of the implementation process is scheduled for April 2014

P&I COVER/WORK OF THE IG

P&I COVER

Ship owner’s Liability for Sickness, Injury or Death• Seafarers entitled to compensation in the event of

death or long-term disability due to an occupational illness, injury or hazard as set out in national law, the seafarer’s employment agreement or collective agreement

• Financial security required in respect of these liabilities • Liabilities are generally already covered by P&I subject

to Club rules and terms of entryMLC 4.2

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P&I COVER

Repatriation• Seafarers are to be repatriated at no cost to themselves

in specified circumstances• Financial security required in respect of these liabilities• Non-operational liabilities are generally already covered

by P&I Subject to Club rules and terms of entry

• P&I cover extended to cover liabilities for repatriation• Shipowner may be required to indemnify P&I Club

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P&I COVER

Clubs agree that cover for repatriation will not terminate until 3 months after notice of termination or cesser of insurance is given to the flag state or 20 February, whichever is earlier

P&I COVER

Unpaid wages are not covered by MLC at present

There is no requirement to provide for loss of security for such wages although it has been agreed in principle by the ILO

The International Group of P&I Clubs (IG) also operates to protect the interests of the shipping industry

The 13 Group Clubs provide liability cover for approximately 90% of the world’s ocean-going tonnage

BENEFITS

Co-ordination of the Group Pooling

Agreement

Promotes industry positions on practical and

legislative issues

Forum for the exchange of information

Provides technical advice and input in the drafting of new

legislation and regulation

INTERNATIONAL GROUP OF P&I CLUBS

Claims co-operation and

co-ordination

CERTIFICATES OF ENTRY AS EVIDENCE OF FINANCIAL SECURITYThe current full list of confirmed States is:1. Australia2. Antigua & Barbuda3. Bahamas4. Barbados5. Canada6. Cayman Islands7. Cyprus8. Denmark9. Gibraltar10. Greece11. Isle of Man12. Japan13. Kiribati14. Liberia15. Malta16. Marshall Islands

17. Morocco18. Norway19. Panama20. Philippines21. Palau22. Poland23. Russia24. Singapore25. Spain26. Sweden27. Switzerland28. St Kitts & Nevis29. St Vincent & Grenadines30. Togo31. Tuvalu32. UK

The International Group of P&I Clubs (IG) also operates to protect the interests of the shipping industry

The 13 Group Clubs provide liability cover for approximately 90% of the world’s ocean-going tonnage

BENEFITS

Co-ordination of the Group Pooling

Agreement

Promotes industry positions on practical and

legislative issues

Forum for the exchange of information

Provides technical advice and input in the drafting of new

legislation and regulation

INTERNATIONAL GROUP OF P&I CLUBS

Claims co-operation and

co-ordination

MLC - WHO BENEFITS? - CONVENTION CREEP

WHO BENEFITS?

There are two main aims of the MLC 2006:

1. To ensure comprehensive protection of the rights of seafarers

2. To establish a level playing field for countries and ship owners committed to providing decent working and living conditions for seafarers, protecting them from unfair competition on the part of sub-standard ships

CONVENTION CREEP

1. Bunker Convention – November 20082. The Migrant Workers and Overseas Filipinos Act of 1995 –

Amended March 20103. Regulation of PLC on the Prevention and Control of Marine

Pollution for Ships – March 20104. Sanctions (EU Counsel Regulations) – July 20125. PLR – December 2012

In addition there have been various SOLAS, STCW and Marpol amendments to contend with

CONVENTION CREEP

• Does legislation push more and more liabilities on to ship owners?

• Is convention creep a reality – what is on the horizon for ship owners?

CONVENTION CREEP

• Athens Convention – April 2014

Although the PLR (December 2012) essentially gives effect to the key provisions of the Convention, the Convention will come into effect in April 2014

CONVENTION CREEP

• The Nairobi Convention

Uniform international rules enabling the removal of wrecks in coastal waters

CONVENTION CREEP

• HNS Convention

Comprehensive regime covering pollution from hazardous and noxious substances carried by ships

CONVENTION CREEP

• Amendment to the 1996 LLMC Protocol

• Significant increase to the limits of liability in the 1996 Protocol

WHO BENEFITS?

• MLC has the potential to make a lasting impact on the welfare of seafarers

HISTORIC ????

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