Flag of convenience, but conditions are inconvenient

Today's visit by Inspectors of the Far Eastern Territorial Organization of the Seafarers' Union of Russia on board MV Helena Grace (IMO 8671702), berthed at Nakhodka once again raised the issue of protecting the rights of flag of convenience vessels crews.

MV Helena Grace is currently being loaded with sheet steel bound for Busan, South Korea. The vessel is registered under the flag of Panama, the shipowner is a Hong Kong-based Shanghai Haoyun Shipping Ltd, and the operator is another Hong Kong company, Helena Grace Shipping Ltd. The crew consists of 19 Chinese seafarers who work under individual contracts.

Although the contracts are written in English and Chinese, they contain unclear phrases, particularly regarding compensation in the event of the death of a seafarer.

— Upon our request, the Captain contacted the company to clear up the amount of this compensation. The shipowner did not answer this question, citing Chinese legislation. However, we explained to the seafarers that since the vessel is registered under the flag of Panama, the laws of this state, not China, apply on board. According to Nikolay Sukhanov, Chair of FETO SUR, this creates legal uncertainty for seafarers, denying them the protection that the national legislation of their country could provide.

The Union's Inspectors explained to the seafarers that the use of convenient flags allows shipowners to minimize costs. Registration under the flag of Panama, the Marshall Islands or other "convenient" jurisdictions ensures low taxes, the absence of strict supervision over working conditions, and the opportunity to hire cheap labor. But for seafarers it results in a lack of basic rights. 

The Inspectors noted that the salary of an AB seaman on board the vessel is $1,300, and that of the captain is $7,600. Although maritime unions around the world require that an able seaman wage on such vessels be no less than $1,836, and compensation for the death of a sailor is $116,000.

- The flag of a vessel is a legal fact that determines which legislation applies to labor relations on board. In the case of MV Helena Grace, this is the law of Panama, which, unfortunately, does not provide sufficient guarantees for seafarers. Accordingly, crew members hired on flag of convenience vessels are denied basic human rights since the registers of flags of convenience do not ensure compliance with minimum social standards, - Sukhanov explained.

The seafarers, after hearing the explanations of the Inspectors, expressed hope for an improvement in working conditions. They asked representatives of the Seafarers' Union of Russia to send the shipowner a demand to sign a collective agreement that would take into account international standards. The MV Helena Grace crew thanked the SUR representatives and expressed hope that working conditions would be improved. 

The SUR notes that this case is just one of many in global practice. Thousands of seafarers around the world face exploitation and lack of protection, so each visit of trade union representatives on board a vessel to inspect the working conditions of seafarers is another step towards justice.

Photo — by FETO SUR