Bahamas Ship Owners’ Association (BMA) Maritime Labour Convention Ammendments Maurice Kelleher Manager, Management Systems Certification, ABS Americas 28 May 2015

2 The Mission of ABS

3 MLC Ratified Countries 66 Flag States have ratified the ILO MLC as of 20/03/2015 This data represents the 80% of the world gross tonnage of ships

4 Maritime Labour Convention (MLC) – Seafarer “Bill of Rights” Provides a set of comprehensive Rights & Protections for Seafarers Minimum working conditions Working hours Health and Safety Crew accommodations Seafarers welfare and contractual arrangements Considered to be the 4 th Pillar of maritime regulation for vessels. STCWSOLASMARPOLILO MLC

5 5 MLC Amendments Reg 2.5 & 4.2 MLC entered into force 20 August 2013 Special Tripartite Committee Ship owners, Seafarers, Governments Continuously reviewing the implementation of MLC Discuss proposed amendments for Ship owner liability Abandonment of seafarers Timeline of amendments Meeting 11 April 14 Amendment approved 13 June 14 Implementation not < June 16 Entry into force early 2017

6 6 MLC Amendments - Ship Owner Financial Security for Liabilities Ship Owner or Someone else who operates the ship and has agreed to take on responsibilities under MLC Seafarer- Any person employed or engaged or works in any capacity on board a ship to which Convention applies Addresses liability of ship owners compensation to seafarers for Death, personal injury, disability reg 4.2 abandonment (new requirement) Focuses on financial requirements the convention places on ship owners Repatriation reg 2.5 Wages reg 2.2 –Generally understood and in principle acknowledged liability –Nature of the “financial security” within MLC was not specified –No provision for unpaid wages or abandonment was included Greater financial security requirements for ship owner liabilities established in the convention

7 7 Repatriation - Regulation 2.5 (existing code) Purpose is to ensure that seafarers are repatriated when entitled and at no cost to themselves. Requires ships to provide financial security to ensure repatriation in accordance with MLC This financial security or guarantee is not defined MLC outlines circumstances where seafarers entitled to repatriation SEA expires SEA is terminated –Ship owner –Seafarer for justified reasons Seafarer can no longer carryout duties MLC does not address abandonment of Seafarers

8 8 Wages - Regulation 2.2 (existing code) Purpose is to ensure that seafarers are paid for their services Requires ships to ensure that seafarers are paid for their work regularly and in full accordance with their employment agreements No financial security or guarantee for payments

9 9 Repatriation & Wages - Regulation (amendment) Requires ship owner to provide financial security system to cover repatriation, wages & abandonment liabilities in accordance with MLC Defines requirements of a financial security system Social security, insurance or national fund resource Requires a certificate or other documented evidence of security Wages & repatriation financial security system 4 months of outstanding wages / entitlements due under SEA Repatriation and associated expenses Addresses and defines “abandonment” of seafarers Failure of ship owner to cover repatriation, provide necessary maintenance and support and has unilaterally severed ties including failure to pay wages for at least 2 months of seafarer For abandonment - an “effective and expeditious” financial security system Direct access Sufficient coverage Expeditious disbursement

10 10 MLC Regulation A4.2 – Ship Owners’ Liability (existing code) Purpose is to ensure that seafarers are protected from the financial consequences of sickness, injury or death occurring in connection with their employment Provide a right to material assistance and support from shipowner with respect to the financial consequences of sickness, injury or death occuring in connection with employment

11 11 ShipOwners’ Liability - Regulation A4.2.1 (amendment) Requires ship owner to provide financial security system to ensure compensation for death or long-term disability due to occupational injury illness, or hazard in accordance with MLC Shall be no pressure by seafarer to accept payment less than contractual amount When unable to assess full compensation, interim payments required Claims for compensation permitted by seafarer or by designee Financial security system shall provide for payment of all contractual claims which arise during period in which it was valid Defines requirements of a financial security system Social security, insurance or national fund resource Requires a certificate or other documented evidence of security

12 12 Financial Security System – A2.5.2 & A4.2.1 Certificate or documentary evidence of financial security issued by provider Name/address of provider Contact details for handling seafarers request for relief Name of ship owner Period of validity Declaration of compliance with MLC requirements Posted in conspicuous location aboard vessel / available for seafarers English or accompanied by English translation Provide financial assistance promptly, expeditiously and effectively Sufficient coverage for MLC Standard A2.5.2 & A months of outstanding wages / entitlements due under SEA & Repatriation 2 months wages & essential needs; food, water, essential fuel for survival aboard, etc., during abandonment until arrival home. 30 days cancellation notification required Not intended to prejudice other rights, claims for abandonment

13 Document of financial security Reg A2.5.2 & A4.2.1 (a) name of the ship; (b) port of registry of the ship; (c) call sign of the ship; (d) IMO number of the ship; (e) name and address of the provider or providers of the financial security; (f) contact details of the persons or entity responsible for handling seafarers’ request for relief; f) contact details of the persons or entity responsible for handling seafarers’ contractual claims; (g) name of the shipowner; (h) period of validity of the financial security; and (i) an attestation from the financial security provider that the financial security meets the requirements of Standard A2.5.2 & A4.2.1