Shipping Regulations and Guidance
September 2013
Maritime labour
convention
the start
entry into force
The long wait is over: as of 20th August 2013, the Maritime Labour Convention 2006 (the “MLC
2006") has come into force.
This Convention, standing as the “4th Pillar” of Maritime Legislation (alongside STCW,
SOLAS and MARPOL) represents the culmination of a major effort by the International Labour
Organization, and the wider Shipping Industry and will be the key piece of legislation governing
Seafarers' rights, working conditions and employment terms.
Every Shipowner, Ship Manager, Crew Agent and Operator will need to be aware of the MLC
2006 and how it affects them.
Christian Ott
Vice President Claims/
Loss Prevention and
Recurring Claims
Assuranceforeningen
SKULD (Gjensidig)
Prepared with the kind
assistance of Cpt. Kerem
Türkmen of Kalimbassieris
Maritime Ltd.
www.skuld.com
application and reach of the
convention
At the time of writing, 48 states were on record as having ratified the Convention, representing
over 75% of the world’s tonnage.
While there are some notable, significant absences from the list of ratifying countries (including
China and India), it does cover many significant Flag States and trading nations. Furthermore
it will ultimately cover the entire European Union, and with key trade nations like Australia,
Canada, Germany, Netherlands, Japan, Philippines, Russia, Singapore, South Africa and
Vietnam having signed up, the majority of the world’s trade will somehow be affected.
This is because the Convention applies not only to vessels flagged in a ratifying nation, but also
whenever a vessel calls at a port of a ratifying nation. Something as simple as a bunkering call
in a ratifying nation will mean the vessel could be subject to inspection by local PSC for MLC
2006 compliance.
different implementation regimes
One key issue that has already caused some concern is the fact that different countries are
implementing the Convention in different ways and this could mean key differences arising in
the scope and rigour of the application.
For instance one Flag State, Liberia, has already stated that Cadets are not to be considered as
Seafarers, although organisations like the ITF consider that they are. In such circumstances, a
vessel may have Cadets on board, yet while its Flag does not consider them to be Seafarers,
the next port of call may be a country that does consider them to be Seafarers and due all the
rights and protection of the MLC 2006.
Some countries may also impose greater obligations on Manning Agents than others, with one
country, India, having drafted legislation that would put the onus of guaranteeing unpaid wages
(in case of Shipowner insolvency) on to the Manning Agents.
While the MLC 2006 was designed to be flexible in terms of the incorporation into different
national laws, in order to encourage ratification, it is this flexibility that is leading to different
interpretations of key issues.
Ship Managers will be particularly challenged to ensure that they are familiar with, and
understand, the particular implementation regime of each Flag State and each crew-supplying
country that they deal with.
Given that a number of significant MLC 2006 ratifying countries are yet to publish detailed
guidance and implementing legislation, there will necessarily be a period of uncertainty.
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Shipping Regulations and Guidance
September 2013
different enforcement regimes
Just as implementation has a lot of flexibility built into the MLC 2006, the enforcement of it is also a key issue on which different
approaches are likely to develop.
Some countries, notably Australia, have a very developed practice of stringent maritime enforcement. It is also a country with
strong employment legislation and an active union movement. It is likely that in such a country the PSC will take a strict approach
to MLC 2006 compliance. This is also likely to be the case in the European Union, where conditions and laws are similar.
Whether PSC in all ratifying states will have the same approach remains to be seen, but differences are likely to surface over
time.
Again the challenge for Owners and Managers will be to ensure that they are able to present a compliant ship to local PSC and
other authorised inspectors, wherever the vessel may call.
Failure to comply risks deficiencies being noted, vessels being detained, fines imposed and in worst case scenarios certificates
being revoked. In particular, tanker vessels reliant on oil major approval will wish to avoid any such outcomes.
non-ratifying states
As mentioned, a number of significant shipping and trading nations have yet to ratify the Convention, and for the time being some
trades may not be caught by it at all, including certain regional trade routes and cabotage trades.
The clear intention of the Convention is to ultimately to reach all of the world’s estimated 1.2 million Seafarers, but that will require
certain key players to come on board to the MLC 2006. Should China and India ratify the Convention, it would be the key game
changing moment.
the future
The MLC 2006, a long time in the making, is now here and in force. Its implementation is a major and significant milestone in the
history of the Shipping Industry, and it has already directed attention to the rights and working conditions for Seafarers, men and
women who are key players in ensuring the world economy ticks over every day.
This Convention marks the Shipping Industry as the first to provide a global framework for the rights of its key employees across
the world.
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