JOINT COMMITTEE ON SOCIAL AND FAMILY AFFAIRS díospóireacht -
Tuesday, 19 Dec 2006

Maritime Labour Convention: Presentations.

Chairman

We have a significant body of officials in attendance from the Departments of Social and Family Affairs, Enterprise, Trade and Employment and Transport. They are all welcome. Mr. Tim Quirke, principal officer, is well known to us, as is Mr. Philip Melville, assistant principal officer, and Ms Siobhán Lawlor, all from the Department of Social and Family Affairs. They have been frequent visitors to the committee.

I also welcome Mr. Frank Doheny and Mr. Michael Pender of the Department of Enterprise, Trade and Employment, and Captain Tom O'Callaghan of the marine survey office in the Department of Transport. I thank them for attending. We are delighted they are here. I hope we have a fruitful meeting.

Mr. Quirke and his colleagues will have heard me refer previously to privilege but I am obliged to do so before each committee meeting. Before we hear from the officials about this EU proposal, I remind members that they should not comment on, criticise or make charges against any persons outside the House or an official either by name or in such a way as to make him or her identifiable. Members who wish to make a declaration in regard to any matter being discussed may do so now or at the beginning of their contribution. Members are also reminded that if there is a possibility of a conflict of interest, they should make a declaration of interest either now or at the start of their contribution.

I draw witnesses' attention to the fact that members of the committee have absolute privilege but this same privilege does not apply to witnesses appearing before the committee. While it is generally accepted that witnesses would have qualified privilege, the committee is not in a position to guarantee any level of privilege to witnesses attending before it. I doubt if anything in that regard will arise from the presentation in hand but I am legally compelled to say so.

We have received substantial help and background information from the officials on COM (2006) 288 and they may bring whatever issues they consider relevant to our attention. I invite Mr. Quirke to make his opening presentation.

Mr. Tim Quirke

I thank the Chairman for his invitation to address the committee on the draft EU Council decision on the new maritime labour convention which was adopted earlier this year. With the Chairman's permission, we will start with three short presentations. The first of these will be from my colleagues in the Department of Enterprise, Trade and Employment which has overall responsibility for the International Labour Organisation, ILO. They will set out the background to the draft Council decision and the new maritime convention and outline the steps that are necessary to ratify the convention on behalf of Ireland. This will be followed by a presentation from Captain O'Callaghan who will outline the purpose of the new convention and the main provisions affecting the working and safety conditions of workers. I will give a short presentation outlining the social welfare implications of the new provisions. My colleagues from the Department of Enterprise, Trade and Employment will commence proceedings.

Mr. Frank Doheny

I would like to give the committee some background information, a current status report and the next steps in the ratification process of this new ILO consolidated convention. I understand committee members already have a copy of the Oireachtas scrutiny note on the proposal, and that a briefing note was recently circulated.

The ILO is the United Nations agency which deals with employment and labour market issues and whose mission is to improve standards and conditions of work and to encourage productive employment. Its membership has been growing rapidly in recent years, as a result of democratisation among other factors, particularly in eastern Europe. Membership now stands at 179 states. Ireland became a member in 1923. The ILO, being tripartite, is obviously unique among UN agencies and governments in so far as employers and workers all participate in its work and decision-making processes.

The Maritime Labour Convention 2006 is an important new international labour convention adopted by the ILO under Article 19 of its constitution at a maritime session in Geneva, Switzerland, in February 2006. It sets out seafarers' rights to decent conditions of work and helps to create conditions of fair competition for ship owners. It is intended to be globally applicable, easily understood, readily updateable and uniformly enforced. The convention contains a comprehensive set of global standards based on those already found in the 60-plus maritime labour instruments. These are either conventions or recommendations that have been adopted by the ILO since 1920.

The new convention brings almost all the existing maritime labour instruments together in a single new instrument that uses a new format with some updating where necessary to reflect modern conditions and language. The convention has been called the fourth pillar of the internationally regulatory regime for quality shipping. It complements the key conventions of the International Maritime Organisation, such as the International Convention for the Safety of Life at Sea.

The Maritime Labour Convention 2006 will come into force 12 months after the date on which there will have been registered ratifications by at least 30 members with a total share in the gross world tonnage of ships of 33%. This ratification level is much higher than the usual level pertaining to ILO conventions. It uses a new formula intended to ensure a greater impact on the part of the convention. It reflects the fact that the enforcement and compliance system established under the convention requires widespread international co-operation in order to be effective.

Since many of the obligations under the convention are directed at shipowners and flag states, it is important that ILO members with a strong maritime interest and high level of tonnage operating under their legal jurisdictions ratify the convention. The existing ILO maritime labour conventions will gradually be phased out as ILO member states that have ratified them ratify the new one. There will be a transition period when some parallel conventions will be enforced. Countries that ratify the maritime labour convention of 2006 will no longer be bound by the existing conventions when the new one comes into force. Countries that do not ratify the new convention will remain bound by the existing ones they have ratified, but those conventions will be closed to further ratification.

Ireland's policy is to ratify ILO conventions only when our national law complies with the various articles in a convention. This strict policy of conformity with national legislation allows for proof of compliance with these ILO instruments. It means that Ireland's tally of ratified conventions stands at 58 out of a total of 187 conventions. In the case of maritime conventions, of which there are more than 30, Ireland has ratified 17. Conventions that have not yet been ratified are kept under constant review.

Let me refer to the process Ireland proposes to undertake regarding the ratification of the Maritime Labour Convention 2006, but let me first refer to recent EU developments. The Transport Council on 12 December 2006 reached agreement on a proposal for a decision authorising EU member states to ratify the maritime labour convention. The proposal aims at authorising member states to ratify the convention since some of the issues covered by it fall under the competence of the European Community and others under the competence of the member states. Article 2 of the agreed decision states that member states should make efforts to take the necessary steps to deposit their instruments of ratification of the convention with the ILO as soon as possible and preferably before 31 December 2010.

The next steps for ratification in Ireland are that an interdepartmental committee comprising officials from the Departments of Enterprise, Trade and Employment, Transport, and its agency the marine survey office, Social and Family Affairs and Health and Children would be convened to determine if Ireland can ratify the new consolidated convention within the timeframe set out in Article 2 of the recent EU Transport Council decision. This interdepartmental committee has already met in preparation for today's session. In line with long-standing procedures, ratification of ILO convention is done by way of a memorandum for Government and associated White Paper, which will be laid before the Oireachtas by the Minister for Foreign Affairs on behalf of the Minister of State with responsibility for labour affairs.

Captain Tom O’Callaghan

Within the marine survey office of the Department of Transport, we inspect vessels for compliance with domestic legislation and international conventions. At the moment there are three main international conventions: SOLAS — the safety of life at sea convention, which deals with construction of vessels in terms of fire protection, fire fighting equipment and life saving appliances and maritime security; Marpol, which deals the prevention of pollution of the marine environment; and the STCW convention, the standard training and certification of watch-keepers convention.

Coming into place now we have the new consolidated maritime labour convention. Previously the International Labour Organisation had a number of instruments that have been consolidated in this new convention. The convention is organised into three main areas, with the articles coming first which set out the broad principles and obligations. This is followed by the more detailed regulations and codes with two parts, A and B.

The regulations and standards contained in part A of the convention, the guidelines in part B and the codes are integrated and organised into general areas of concern under five titles. Title 1 deals with the following: minimum requirements for seafarers to work on a ship; title 2 deals with conditions of employment; title 3 with accommodation and recreation facilities, food and catering; title 4 with health protection, medical care, welfare and social security protection; and title 5 with compliance and enforcement. These five titles cover the same subject matter as the existing 68 maritime labour instruments but they have been updated where necessary.

The convention is considered to be a bill of rights for seafarers. It endeavours to create a level playing field and transparency in the maritime industry for the employment of seafarers. Within the convention, port state and flag state responsibilities are outlined. Flag state responsibilities are the responsibilities of the state whose flag flies at the aft end of the vessel and under which the vessel operates. Port state responsibilities are requirements that we must meet under the convention when foreign ships visit Irish ports.

When the convention comes into operation, every vessel will be required to possess and carry a maritime labour certificate. This certificate will be prima facie evidence that a vessel complies with the requirements of the convention and that the provisions of the maritime labour convention are fully embodied in the national requirements. Within this certificate there are requirements that the flag state has met the rules and regulations on minimum age, medical certification, qualification of seafarers, seafarers’ employment agreements, use of any licence or certified or regulated private recruitment and placement services, hours of work and rest, manning levels for the ship, accommodation, on-board recreation facilities, food and catering, health and safety and accident prevention, on-board medical care, on-board complaint procedures and payment of wages.

Mr. Quirke

I will outline the implications for the social welfare system. As Captain O'Callaghan said, title 5 of the convention includes some new social security requirements. First, however, I will deal with existing arrangements for social insurance coverage for seafarers. Under the current social welfare legislation, any person is insured under the PRSI system if he or she is employed as a master or crew member on any ship registered in Ireland, or any other ship in which the owner or the managing owner resides or has his place of residence in this State. That person can have crew entitlements to social insurance benefits and pensions in Ireland. Whereas the national legislation mainly caters for workers whose employment takes place in the State, special arrangements are in place to provide social protection for workers who work abroad, including those on foreign registered ships. These arrangements include EU co-ordination to support harmonised protection for workers who move between EU countries or EU flagships; posting arrangements and a voluntary insurance contribution system.

The new convention will not impact on existing arrangements for EU member states, set out in EU Regulation 1408/71, which deals with the co-ordination of social security rights for people who move within the European Union. However, the convention includes a special clause which maintains the status quo in this regard. The applicable legislation governing social insurance cover for seafarers will continue to be determined by reference to where the ship is registered, that is, the flag state.

The ILO convention proposes a departure from the traditional arrangements for social security coverage. Instead of coverage being determined by reference to the flag state, responsibility for social protection of seafarers is being assigned to the country in which the seafarers are resident. The rationale behind this new approach is to ensure that seafarers who move between vessels from various flag states will be able to accrue and maintain an insurance contribution over their working lifetime. This is instead of the situation where contributions have been paid to a number of different countries, potentially limiting the social welfare entitlements of seafarers in the long run.

The implementation of this new framework will not be without difficulty. To ratify the convention, Ireland would have to make social insurance protection available to seafarers who are resident in Ireland but who are working for a non-resident employer, with associated issues arising from the assessment and collection of contributions and the best way to monitor compliance. We would also be required to export short-term benefits, such as illness benefits, to non-resident seafarers where they are not normally exportable. This would have to be done in the absence of mechanisms to control and monitor continuing entitlement for receipt of those benefits. In addition, provisions will be required to exempt the seafarer working on an Irish ship from liability to this State's social insurance system where there is adequate cover available in the jurisdiction in which the seafarer resides.

A number of approaches are possible to meet the requirements of the convention. These are still in the early stages of consideration and there are only broad parameters at the moment. One approach is to submit, on ratification, that Ireland be accepted as meeting the standard by virtue of satisfying four contingencies. These are the contingencies of medical care and family benefits, which are based on residence, as well as old age and survivors' pensions which must be provided through an extension of the current voluntary social insurance system. However, the convention also includes an obligation on states to achieve progressively more comprehensive protection, equivalent to the level of cover provided for shore workers. To fulfil these additional requirements, we will need to consider the option of extending full social insurance cover, either on a voluntary or on a compulsory basis, to Irish resident seafarers who are working for a non-EU employer.

Regardless of the approach taken, this will mean changes to current social welfare legislation. New administrative practices will also be required. We will need to engage in consultations with the maritime sector in formulating our proposals to achieve the required outcomes, which will ultimately be practical for seafarers and employers alike. We are confident that a practical approach can be adopted to provide the seafarers with the optimal social protection required by the terms of the convention.

Deputy Stanton

I welcome the witnesses. It is an interesting topic and I wish those involved the best of luck as they move on with their work and congratulate them on the important work done to date. The issue is complicated but also fascinating. As we are an island nation, a great percentage of our trade moves by sea. Yet, despite our dependance on the sea, there is a lack of awareness among many Irish people of matters maritime and the number of Irish people who work on ships and fishing vessels. Tom McSweeney's radio programme does much to bring about awareness but perhaps we need to do more through schools and otherwise to educate the public about the tremendous work done in this area, the huge risks taken by those who work in this area and the conditions of their work.

We all know the scare stories about what happens when things go wrong and supports are not in place. I recently heard from a Filipino lady whose brother had been injured on a ship and ended up in another country, which shall remain nameless, although the case has no connection with this State. He found it difficult to get support and he became almost a stateless person. If I understand correctly, this convention seeks to address this area, which is important. Many people spend much of their working lives at sea and their homes are on board ship. Captain O'Callaghan is nodding his agreement — he would know more than the rest of us in this regard. One would wonder which is the state of residence of such sailors if they spend most of their time on board ships. It is a totally alien life to most of us.

Some 17 out of 30 conventions were ratified. Why has Ireland not ratified the other conventions? I understand that conventions must be in line with our legislation. While I do not want to add to the workload, should we be considering the other conventions? Are they all applicable or are some not applicable?

I understood from the presentation that 33% of the world's tonnage must sign up to this convention or, at least, that 33% is a benchmark percentage. This would imply that many states will not sign up to the convention. In that event, what happens when persons of such states land in Ireland, where they are not resident? If ships from flag states which do not ratify the convention, carrying sailors from states which have not ratified it and who are not resident in Ireland, arrive here, what position will the sailors be in vis-à-vis our social welfare system? This may not apply but it could arise as an issue.

Do many companies, for various reasons, decide to operate under flags of convenience of countries which may have fairly lax regimes, for example, with regard to health and safety, wages and social security? What is the state of play in Ireland regarding companies which de-flag, if that is the right term, from Ireland and sail under flags of convenience of other states? The country of residence rather than the flag state will be important. The flag state has responsibility to monitor the protection provided and provide cover where it would not otherwise exist. However, what will happen if a flag state has not signed up to the convention? Will the convention be ratified by Ireland by 2010 or is it hoped to have it ratified long before then? Is it the ultimate aim that states representing 33% of the world's tonnage will ratify the convention by 2010? This is a fascinating area and we must do more to raise awareness of it, and of the position of those who work on the high seas.

Captain O’Callaghan

I will answer the Deputy's questions to the best of my ability and will seek the assistance of my colleagues where necessary. Deputy Stanton referred to Tom McSweeney and his various programmes. As part of his endeavours to raise awareness of these issues, Mr. McSweeney has produced a video aimed at encouraging young people to go to sea. This convention includes a requirement that signatories must promote seafaring as an occupation. Compared with many of our EU counterparts which are also coastal countries, Ireland has a relatively small fleet and a small seafaring population. If we wish to develop our maritime industry, we must promote seafaring as a career, including such roles as harbour master and harbour pilot.

Deputy Stanton referred to an incident that took place in another jurisdiction in which a seafarer was injured. The convention covers this in detail and those types of incidents will hopefully not occur once the convention comes into force.

Deputy Stanton asked about the situation in regard to ships from states which have not signed the convention arriving in Irish ports. Under this convention and the ILO conventions such as SOLAS, what is known as a "no more favourable treatment clause" applies. This means that ships from states which are not signatories to the convention may not evade the obligations arising from it. In the case of the SOLAS convention, for example, a vessel from a state that is not a signatory to the convention must nevertheless meet the convention's requirements in regard to firefighting equipment and lifesaving appliances when it enters port in a signatory state. The same will apply in the case of the new maritime labour convention. In other words, countries which do not wish to sign up to the convention will not enjoy a get-out clause in terms of these provisions.

Deputy Stanton expressed concern that countries will not sign up to the maritime labour convention. I understand the convention is relatively easy to ratify and that countries with large numbers of ships will find it is of benefit to them to do so because it will make their flags more attractive. The European Union includes 25 member states and has trade agreements with several others. This comes close to the number of countries required to trigger the convention. Even within the EU, Cyprus, Greece and Malta between them represent a large tonnage, which already brings us close to the requirement. It may be the case that as few as one or two additional states will be required to ratify the convention once all the EU countries have done so.

I understand the term "flag of convenience" was coined by the International Transport Workers Federation, ITWF, which represents some 600,000 seafarers internationally. It refers to the system in operation in some states whereby vessel owners who are not resident in that state may flag their vessels there. The ITWF is of the view that it is generally a ploy on the part of owners to gain some commercial advantage.

Mr. Quirke

I wish to respond to Deputy Stanton's concerns to the effect that states may not sign up to this convention. When it was adopted earlier this year, it received the unanimous approval of 314 signatories. Nobody was opposed to it. A second point in favour of the prospect of a good level of ratification is that this convention includes a greater degree of flexibility than those already in place. National governments have greater flexibility to implement this convention, giving us greater confidence for ratification. We have not yet ratified all ILO conventions because of conflict between Irish law and the conventions. Agreement has been reached by the Council and it urges member states to ratify by 2010.

Mr. Michael Pender

Mr. Quirke is correct. Captain O'Callaghan and I were involved in the Irish Presidency in 2004. Work on this convention has been under way for almost five years. Much time and effort was put in by employers, governments and workers. They felt that earlier conventions were too rigid and difficult to implement. The European Union noted that, from a political point of view, with a higher number of seafaring countries, it would be better if European Union member states were in the first group of countries to ratify it. The language in the convention is more flexible, leaving practical matters up to the countries.

Deputy Callanan

Does the maritime labour convention affect pay and conditions? A ship is impounded at present because the owners are not paying the correct rate. Is the rate of pay determined by the country in which the vessel is registered? Will foreign workers working on an Irish ship be paid the Irish minimum wage?

Deputy Ring

What difference would this convention have made to Irish Ferries workers? They were replaced by cheaper labour. How does this convention affect Russian workers who are not paid a proper wage or are not paid at all? Some are owed money by a company registered outside this State. Why did the workers not demand their rights in the country from which they came?

Chairman

This convention applies to conditions of employment, proper food, welfare, health and safety. Will adequate resources be allocated to ensure compliance? This is the essential matter. A plethora of laws and regulations exist and it is important they are applied, with adequate resources for inspections. Captain O'Callaghan will certify compliance.

Is there a minimum gross tonnage of 200 tonnes? The witnesses know how many vessels this affects now but can they predict how many this will affect in 2010? Mr. Quirke suggests we will have residence-based protection, which is very important. Hypothetically, how would Irish Ferries workers have fared if the convention had been applicable at that time? How does it affect the Russian workers? Although I come from the midlands, I am surrounded by lakes. When people are underpaid, it is traumatic. They seem to work long hours because, as Deputy Stanton said, their home and work is all one. It is a tough job and I admire those who undertake it. Why does it always happen in that situation? Is there no regulation in other countries? We have good regulation in this country. Would this convention mean a significant rise in standards applicable here? I am sure our standards are already good. What additional improvement in standards will result from this convention being implemented in Ireland apart from what already applies? Many people must be glad to arrive in our waters because we have good standards and operate them immediately. I would hope people such as the witnesses are investigating and ensuring those who receive low wages and work 18 hours a day are protected and not just fed but properly looked after in all aspects. I apologise for being long-winded but it is the same issue that arose in the three questions.

Captain O’Callaghan

I will start the ball rolling and I may call on my colleagues where their competencies are better than mine. I will answer Deputy Callanan's question on how this will improve the lot of seafarers. Within the convention there is a requirement that member states have an involvement in showing how they calculate a person's wage. There will be more transparency and will not be any hidden or grey areas. That is the purpose of the convention. For example, if a vessel arrives in an Irish port and there is a problem with its maritime labour certificate, we will be able to detain that vessel on a State patrol as we detain vessels that do not comply with other conventions. For a flag state to issue a maritime labour certificate, it must be clearly transparent how seafarers' wages are calculated. Where there are labour supplying states there will be requirements for approval and licensing of recruitment agencies. Again, there will be transparency that does not exist currently.

On Deputy Ring's question about Irish Ferries, the convention will not impact that situation because it is a level removed from the convention. It was a decision by a company on its approach or policy rather than dealing specifically with seafarers. Although the seafarers were caught up in the issue, it was not covered to the maritime labour convention. The convention has no influence where a company decides to sell or re-flag ships unless there was breach of individual contracts.

On vessels that come into ports where the convention has been ratified, with this convention there should be less room for manoeuvre for shipping companies, owners or operators who operate in an underhand manner. There are so many details in the convention with which the flag states must comply that some elements of bad practice will always exist. However I hope it will negate most of the bad practices that happen to seafarers.

It is difficult to see where the Irish flag is going. Under law it is possible that more vessels will come under the Irish flag or that vessels will be sold and go to other flags. It is difficult to predict where we are going. As the Chairman said, Ireland is already at a high standard within the European Union. Certain issues in the convention will need to be tidied up and legislated for. We have already met, if not exceeded, most of the requirements of the convention, certainly from a practical, sea-going point of view.

Deputy Ring

There are a number of conventions and regulations for boats but no protection for workers. Men and women worked very hard for Irish Ferries but the company decided it could get cheaper labour elsewhere. Now a Russian ship is detained in Dublin. Perhaps in years to come a boat will again be tied up in Dublin on account of another dispute in which people's rights are not being respected. I do not know if regulations make any sense in that context. They should contain more about people and less about rules in boats.

Captain O’Callaghan

The convention is a detailed document and, as I have already said, it seeks to address issues such as seafarers' employment. It is not within my competence to discuss——

Deputy Ring

It is not the captain's fault. People have been well paid to spend months talking about it but, as in this country, they are more concerned about rules and regulations. We are great for rules and regulations but not as good at protecting people who need to be protected, such as pensioners. There is no protection for the workers whose boat is tied up in Dublin. We saw the same thing with Irish Ferries where Irish citizens who had worked very hard for that company could be replaced overnight by cheaper labour without protection.

Mr. Pender

In the context of the Irish Ferries dispute, if a ship is Irish-registered then Irish employment law will apply. The Deputy will recall that there was much discussion at the time on the fact that it operated under a flag of convenience. As Captain O'Callaghan said, that was a decision by the company involved and was the subject of lengthy discussions involving officials in my Department and others, including the Department of the Taoiseach, following which a deal was struck whereby the workers were paid the Irish minimum wage.

Mr. Quirke

I reiterate my earlier point that our main hope is for other countries, particularly outside Europe, to sign up to this convention. There is greater hope in this case because of the greater flexibility it offers in that regard. If that happens we will be able to inspect ships for decent work conditions and compliance with national standards.

Chairman

If the Department does not have adequate resources to establish the inspectorate there will be problems. I am sure Captain O'Callaghan will not disagree that adequate resources are needed to enforce the thrust and objectives of the convention.

Captain O’Callaghan

I agree that adequate resources are required. The marine survey office has approximately 25 surveyors, operating around the country.

Chairman

Does that represent much of an increase over the past five years?

Captain O’Callaghan

Yes. It has increased significantly to meet our ongoing demands in the inspection of ships. Last year we inspected 422 foreign ships entering our ports for compliance with international conventions. We have an office in Ballyshannon, one in Cork and one in Dublin. We board a ship and inspect its working and living conditions, in which we are governed by port State control obligations under the Paris memorandum of understanding, an agreement with all the EU maritime countries as well as Russia and Canada. This is a structured organisation that applies guidelines as to how to inspect vessels. Within the convention there will be a requirement for additional training of surveyors, more of whom we may need. Additional training will also be required for the labour inspection element of the convention. We carry out inspections but seafarers who have complaints about wages can go to seafarers' unions, who have traditionally handled such issues effectively.

Chairman

It is a very complex subject. Does the witness believe the convention will be ratified in five years' time, in 2012, or will it happen in 2010?

Mr. Quirke

All EU member states have been urged to ratify it by 2010.

Chairman

Will Ireland hit that target?

Mr. Quirke

We would be confident of achieving ratification by that date.

Chairman

The matter is at an early stage and much work has yet to be done before the convention is ratified. It would be important that the Department of Social and Family Affairs, the Department of Enterprise, Trade and Employment, the Department of Transport and Captain O'Callaghan's office, the marine survey office, would keep the joint committee informed of developments in this area. This is particularly so with regard to an opinion of the European Parliament expected in March on the progress of consultation with social partners.

As with any legislation within the remit of this committee, we would like to be kept informed. The witnesses should feel free to contact the secretary in March when matters have progressed, or even when the opinion of the European Parliament has been sought. A draft report of this meeting will be circulated to members in due course for approval at the next opportunity.

We have had a valuable meeting with all the officials, whom we thank for coming. It is sometimes an awkward time of the year and we are thankful to the witnesses for making themselves available to attend and answer the myriad of questions. More of these will probably arise again. I wish everyone a happy Christmas.

The joint committee went into private session at 4.02 p.m. and adjourned at 4.05 p.m. until 3 p.m. on Tuesday, 16 January 2007.