© Chris Durrant, Steamship Mutual
A “BILL OF RIGHTS” FOR SEAFARERS
Steamship Mutual, a market leader in the provision of Yacht P&I liability insurance internationally outlines the implications for Owners & Managers of the latest international regulation of seafarers employment conditions
he Maritime Labour Convention 2006 (“MLC”) came into force in the original ratifying states in August 2013. Known in the industry as the “Seafarer’s Bill of Rights,” it is unique in its effect on both seafarers and responsible owners/ managers in terms of contracts of employment and on board working conditions. The Convention has established minimum working and living standards for all seafarers aboard ship.
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The convention now applies to over 90% of the world’s merchant shipping fleet as well as a significant portion of the world’s superyacht fleet. The MLC applies to all vessels engaging in commercial activities and therefore applies to any yacht that operates charters, unless the yacht’s flag state permits otherwise. In addition, many flag states recommend that any non-commercial superyachts flying their flag comply with the Large Commercial Yacht Code and the Code itself incorporates many elements of the MLC.
The MLC was drafted to consolidate 68 instruments that had dealt with, amongst other things, manning, inspection, employment agreements, food and catering standards, complaint procedures, hours of rest and minimum working ages. As such, the MLC is intended to be the fourth pillar of international maritime regulation with the objective of standardising the working conditions of those working at sea.
Certification demonstrating MLC compliance is required for all vessels engaging in international voyages or if they fly the flag of a state that ratifies the MLC.
As an insurer of crew liabilities, Protection & Indemnity Clubs have had a keen interest in the provisions of the MLC from the outset. The International Group (“the IG”), which is made up of 13 P&I Clubs, has been in close consultation with the MLC Member States throughout the MLC’s development to ensure that International Group Club Members are able to comply with the convention. Furthermore, IG Clubs will assist as far as possible with the certification requirements.
Under the MLC, seafarers are entitled to: Repatriation at no cost to themselves; Compensation for lost wages caused by the loss of the vessel and; Compensation for death or long term disability due to an occupational injury or illness.
Whilst not all of these crew liabilities fall within standard P&I cover provided by the Clubs, in order to streamline the administrative burden on Members, most International Group Clubs agree to act as the necessary guarantor for all MLC liabilities, simply reserving their rights to seek reimbursement from Members in cases where the liability was not one to which the P&I cover responded.
114 | SPRING 2017 | ONBOARD
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