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Briefing Notes for MPs on the position for seafarers under the 1976 Race Relations Act

In 2003 Government amended section nine of the 1976 Race Relations Act. This section relates to the treatment of seafarers recruited abroad to work on UK ships. It still permits shipowners to utilise foreign national seafarers on exploitative rates of pay and long tours of duty.

The amended section nine made clear that the exemption is based on domicile as opposed to race, colour or ethnic origin. Effectively the new legislation has allowed shipowners to carry on with the same recruitment practices as they had prior to the amended legislation.

 

The discrimination is based on nationality but the seafarers have to reside and be recruited abroad in order for the exemption to apply, discrimination on other grounds is not allowed. In other words seafarers are recruited abroad on local rates of pay to work on UK registered vessels.

 

Key Points

 

o      The discrimination is being applied in British workplaces. Other industries employing workers from abroad would quite rightly be expected to pay UK rates of pay when in a UK workplace.

 

o      Despite all the arguments about being competitive in a global industry the UK shipping industry should not be able to escape these minimum standards.

 

o      The arguments of residence are not valid, and for seafarers permanently engaged they are actually living abroad the UK vessels for approximately 10 out of 12 months in any one-year.

 

o      The Race Relations Act and other equality legislation should in principal be universally applicable. The arguments used by the shipowners are of course very similar to the arguments that have been used by employers when seeking to avoid other legislation on minimum standards and equal rights.

 

o      It is not acceptable for the Government to be blackmailed from implementing equality legislation on the basis of threats to flag out vessels

 

 

o      Because of the cloak of respectability of the UK Flag, shipping companies are taking advantage of the lack of minimum standards (compared with other North West European states), and engaging seafarers on rates of pay below the minimum wage. 

 

o      It is hardly helpful for Stena Line, who quite properly engage UK seafarers on board their Irish Sea vessels, to have to bear the unfair competition from P&O who under current legislation are allowed to continue the employment of low cost foreign nationals.

 

o      Contrary to statements made by the Chamber of Shipping, if the Government allow the legislation to continue in its current form the future for the remaining UK seafarers will become increasingly precarious. 

 

Latest Developments

 

Arising from a statement by the European Commission Transport spokesperson, Government lawyers have been forced to examine whether UK legislation complies with EC law.

 

European Commission officials stated that any EU seafarer should be paid according to the home rate of the flag of the ship they serve on, regardless of residence. In effect this would mean that Spanish, Polish or any other EU nationals could not be discriminated against on pay when compared with resident UK seafarers employed on board UK flagged ships.

 

Following questions from unions in the Shipping Task Force Working Group the Department of Transport have now stated that, after receipt of legal advice, they have concluded that sections eight and nine of the 1976 Race Relations Act will have to be reviewed. The advice from Government lawyers apparently states that if a close enough link (to be defined) existed between an EEA seafarer and the flag state of the ship on which they are working, they could not be paid at a differential rate from resident seafarers of the flag state.

 

The Government will soon issue a consultation exercise and the crucial question will be how the link referred to above will be defined. RMT wish to see the reforms carried out effectively. It is essential that the Government does not apply new regulations on the basis of a 'light touch', so that the discrimination effectively continues without individual seafarers raising formal complaints. In addition discrimination against non-EU nationals also needs to be outlawed by a full repeal.