Talks to increase the minimum wage for seafarers at the International Labour Organization (ILO) have broken down.
Industry shipowners, representing the cruise and transport sectors, put forward a three-year deal to increase the basic minimum wage for seafarers. The offer represented a 3% increase for seafarers across the world.
The seafarers’ unions did not accept the offer made during two days of official talks at the ILO, which according to the ILO process means that able seafarers will now not be entitled to a rise in the minimum wage for 2 years.
Commenting on the decision, Natalie Shaw, Director Employment Affairs at the International Chamber of Shipping said:
Unfortunately the seafarers’ representatives rejected a generous offer from the shipowners in these unprecedented times. We went further than we had anticipated but the offer was still rejected. However, our door is always open
ICS also added that shipowners remain open to discussing the minimum wage with the unions in an effort to seek an early resolution.
On the other hand, Mark Dickinson, Seafarers Group Spokesperson at the ILO and Vice-Chair of the Seafarers’ Section of the International Transport Workers’ Federation (ITF), noted that:
For only the second time in the long history of these negotiations the shipowners and the seafarers have failed to agree a revised minimum wage for seafarers. And that’s wholly the fault of the shipowners, who have behaved with such an astounding lack of self-awareness and a lack of respect for the sacrifices of seafarers – especially these past 14 months
Moreover, Mr. Dickinson said that a new research from the ITF showed a quarter of seafarers were considering quitting the industry already due to the ongoing crew change crisis and another 23% of seafarers were unsure about their future, suggesting a seafarer supply crunch was looming. Covid-era ravel, transit and border restrictions meant a prospective seafarer might not see their family for years.
Finally, Mr. Dickinson noted that failing to agree means the ITF now must unilaterally determine the ILO minimum wage rate, and that it will “respect and keep faith with the ILO formula, which is fair and objective.”
The formula puts the minimum wage at US$683 per month with effect from 1st January 2022, a US$1.40 per day increase on the current rate of US$641, which was set following discussions at the ILO in 2018.
