30.01.2020

Base rate of an AB is $ 625 from January 1, 2020

The minimum base rate of an AB (payment for work not exceeding 48 hours a week) has risen to $ 625. This increase was agreed by theSubcommittee of the Joint Maritime Commission whichconsistsof trade unions and employers backin November 2018. We recall that the International Transport WorkersFederation, representing the interests of workers, planned to achieve a minimum rate increase of $ 50 dollars over three years. The ITF explained its position by the fact that in 90% of the countries where the seafarers come from, the real value of their wages has fallen dramatically, in somecases by more than 15%.However the International Chamber of Shipping reacted negatively to this proposal. Negotiations turned out to be extremely difficult.  The unions met with serious resistance from employers when it came to a significant increase in the base rate. Although the original goal was not achieved, the ITF rated the outcome of the negotiations as satisfactory. The parties were able to agree to raise the base rate by $ 27 over three years.

The decision to increase the base rate was made in connection with changes in the consumer price index and the impact that fluctuations in the dollar exchange rate have on other countries, - said then president of the Seafarers Union of Russia Yuri Sukhorukov, who participated in the work of the subcommittee.

We add that on January 1, 2021 the base rate will rise again and amount to $ 641.

Reference: The Joint Maritime Commission has existed since 1920. It is the only permanent bilateral body of the ILO. It consists of a chairman, two members of the governing body (one is an employee, the other is an employer), 20 representatives of shipowners, 20 representatives of seafarers, 4 delegates from shipowners and 4 delegates from seafarers. The Subcommittee was established at the 280th session of the Governing Body of the ILO in March 2001. The aim of the Subcommittee meetings is to update the level of the base rate of AB. The Seafarers Union of Russiais a member of the subcommittee.


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