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MLC – Consequences for
Norwegian shipping

Terje Hernes Pettersen
Senior adviser
Ministry of Trade and Industry
Introduction




               28 March
                   2011
The role of the Ministry of Trade and Industry

 • The Ministry of Labour has the main responsibility for working
   and living conditions in Norway

 • The Ministry of Trade and Industry has the overall responsibility
   for shipping matters in Norway, including seafarers working and
   living conditions

 • The Norwegian Maritime Directorate (NMD) has the operative
   responsibility to adopt standards and supervise that they are
   complied with



                                                               28 March
                                                                   2011
The ILO and Norway

• Member of the ILO since the early days in 1919

• Played an active role within the organization to promote decent
  working and living conditions worldwide

• Ratified most of the conventions adopted by the ILO

• We believe: Close co-operation between the social partnairs
  and the governments is fundamental to promote high
  international standards


                                                            28 March
                                                                2011
Why was the MLC necessary?




                             28 March
                                 2011
The situation before MLC

 • About 70 maritime ILO standards

 • The degree of ratification varied substantially

 • Reservations were taken by national states

 • The level of working and living conditions varied
   substantially from state to state




                                                       28 March
                                                           2011
Need for one comprehensive binding standard

 • The shipping industry is a genuine international industry
 • In reality, there were no comprehensive global standards on
   working and living conditions with wide-spread international
   acceptence, as opposed to the standards adopted by the IMO
 • As a result: Not sufficient and sustainable barriers against social
   dumping in the maritime industry
 • 2001: The social partners and the governments recognized the
   need for a comprehensive convention
 • 2006: The MLC adopted.




                                                                28 March
                                                                    2011
Consequences for Norwegian shipping




                                  28 March
                                      2011
Implementation of the MLC in Norway

• 2008: Amendments to the Seafarer’s Act

• 2009: Norway ratified the MLC

• 2009: The Norwegian Maritime Directorate initiated a national
  process of implementation
   – Adopt regulations
   – Adopt procedures
   – Training of personell
• The process involves the social partners
• Aim to have everything in place in early 2012
                                                            28 March
                                                                2011
Legal implications of the MLC in Norway

• Starting point:

• Norway has ratified most of the Conventions that are codified in
  the MLC

• In addition, Norway has in some areas adopted a higher level of
  protection than the ILO standards

• The implementation of the MLC shall NOT lead to a lower
  national standard in Norway than before the MLC


                                                             28 March
                                                                 2011
The shipowner’s responsibility

• The shipowner has the responsibility of fulfilling the obligations
  of the MLC

• In national law before the MLC: This was the obligation of the
  employer

• There was a need to identify the shipowner; we have chosen the
  ISM-company

• This will have some contractual implications for the industry


                                                                28 March
                                                                    2011
Certification

• MLC requires the issuance of a Maritime Labour Certificate

• Declaration of Maritime Labour Compliance (DMLC part I and II)

• Certification will be harmonized with safety certificate
  inspections




                                                             28 March
                                                                 2011
The seafarer’s right to complain

• The MLC establishes a right for the seafarer to make complaints

• This is a novel right for seafarers envisaged in our national law

• The complaint shall seek to be resolved at the lowest level

• But, the seafarer may also complain to the Norwegian Maritime
  Directorate (NMD)

• This will create certain adminitrative burdens on the NMD and
  the shipowners

                                                                28 March
                                                                    2011
Economical and administrative consequences

• Costs for shipowners in total is estimated to 25 million kr (4
  MILL USD). The costs are mainly related to the certification
  process

• For the NMD: Administrative concequences; need for more
  personell and training of personell




                                                               28 March
                                                                   2011
Other consequences

• For quality flag states like Norway, global standards of high
  standard is an advantage

• It will promote equal competitions between flag states

• It will be easier for shipowners to document the standard of
  living and working conditions on their ships

• For seafarers all over the world, the MLC is maybe the most
  important single document ever adopted


                                                              28 March
                                                                  2011
STCW – health requirements

• The STCW was revised in Manila in June 2010

• The revised convention has more detailed health-requirements

• A joint ILO/IMO working group are working on harmonized
  guidelines between MLC and STCW

• STCW has an important exemption regarding rest periods. An
  amendment to make effect to the amendments will be sent on a
  national hearing soon



                                                            28 March
                                                                2011
The next step

• The MLC has unfortunately not entered into force yet.

• It is of great importance to keep the momentum going amongst
  signatories to the MLC and speed up the ratification process

• What is needed is the MLC to enter into force!




                                                          28 March
                                                              2011
Thank you for your attention!




                                28 March
                                    2011

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3 pettersen nmti mlc - consequences for norwegian shipping

  • 1. MLC – Consequences for Norwegian shipping Terje Hernes Pettersen Senior adviser Ministry of Trade and Industry
  • 2. Introduction 28 March 2011
  • 3. The role of the Ministry of Trade and Industry • The Ministry of Labour has the main responsibility for working and living conditions in Norway • The Ministry of Trade and Industry has the overall responsibility for shipping matters in Norway, including seafarers working and living conditions • The Norwegian Maritime Directorate (NMD) has the operative responsibility to adopt standards and supervise that they are complied with 28 March 2011
  • 4. The ILO and Norway • Member of the ILO since the early days in 1919 • Played an active role within the organization to promote decent working and living conditions worldwide • Ratified most of the conventions adopted by the ILO • We believe: Close co-operation between the social partnairs and the governments is fundamental to promote high international standards 28 March 2011
  • 5. Why was the MLC necessary? 28 March 2011
  • 6. The situation before MLC • About 70 maritime ILO standards • The degree of ratification varied substantially • Reservations were taken by national states • The level of working and living conditions varied substantially from state to state 28 March 2011
  • 7. Need for one comprehensive binding standard • The shipping industry is a genuine international industry • In reality, there were no comprehensive global standards on working and living conditions with wide-spread international acceptence, as opposed to the standards adopted by the IMO • As a result: Not sufficient and sustainable barriers against social dumping in the maritime industry • 2001: The social partners and the governments recognized the need for a comprehensive convention • 2006: The MLC adopted. 28 March 2011
  • 8. Consequences for Norwegian shipping 28 March 2011
  • 9. Implementation of the MLC in Norway • 2008: Amendments to the Seafarer’s Act • 2009: Norway ratified the MLC • 2009: The Norwegian Maritime Directorate initiated a national process of implementation – Adopt regulations – Adopt procedures – Training of personell • The process involves the social partners • Aim to have everything in place in early 2012 28 March 2011
  • 10. Legal implications of the MLC in Norway • Starting point: • Norway has ratified most of the Conventions that are codified in the MLC • In addition, Norway has in some areas adopted a higher level of protection than the ILO standards • The implementation of the MLC shall NOT lead to a lower national standard in Norway than before the MLC 28 March 2011
  • 11. The shipowner’s responsibility • The shipowner has the responsibility of fulfilling the obligations of the MLC • In national law before the MLC: This was the obligation of the employer • There was a need to identify the shipowner; we have chosen the ISM-company • This will have some contractual implications for the industry 28 March 2011
  • 12. Certification • MLC requires the issuance of a Maritime Labour Certificate • Declaration of Maritime Labour Compliance (DMLC part I and II) • Certification will be harmonized with safety certificate inspections 28 March 2011
  • 13. The seafarer’s right to complain • The MLC establishes a right for the seafarer to make complaints • This is a novel right for seafarers envisaged in our national law • The complaint shall seek to be resolved at the lowest level • But, the seafarer may also complain to the Norwegian Maritime Directorate (NMD) • This will create certain adminitrative burdens on the NMD and the shipowners 28 March 2011
  • 14. Economical and administrative consequences • Costs for shipowners in total is estimated to 25 million kr (4 MILL USD). The costs are mainly related to the certification process • For the NMD: Administrative concequences; need for more personell and training of personell 28 March 2011
  • 15. Other consequences • For quality flag states like Norway, global standards of high standard is an advantage • It will promote equal competitions between flag states • It will be easier for shipowners to document the standard of living and working conditions on their ships • For seafarers all over the world, the MLC is maybe the most important single document ever adopted 28 March 2011
  • 16. STCW – health requirements • The STCW was revised in Manila in June 2010 • The revised convention has more detailed health-requirements • A joint ILO/IMO working group are working on harmonized guidelines between MLC and STCW • STCW has an important exemption regarding rest periods. An amendment to make effect to the amendments will be sent on a national hearing soon 28 March 2011
  • 17. The next step • The MLC has unfortunately not entered into force yet. • It is of great importance to keep the momentum going amongst signatories to the MLC and speed up the ratification process • What is needed is the MLC to enter into force! 28 March 2011
  • 18. Thank you for your attention! 28 March 2011