Rates of Pay and Conditions of Service 2021 – Foreland Shipping

Our Ref: SH/0001/FS
18th December 2020


Dear Colleagues

Rates of Pay and Conditions of Service 2021 – Foreland Shipping

In line with union policy, a pay claim for an increase in pay and improved terms and conditions was submitted to the company. The Assistant National Secretary has met with them and the following options have been tabled:-

Option One

· A 1-year pay deal based on AWE (KAC3) escalator confirmed (September figure), the current September (provisional) figure stands at 1.3%. This figure will be confirmed on 15 December 2020 and is estimated to be aligned with RPI. Effective from 1st January 2021.

Option Two

· A 4-year pay deal for the period 2021 to 2024 inclusive which would be based on AWE (KAC3) escalator confirmed (September figure) released in December with a guaranteed minimum annual floor of 1.0%. To start this new 4-year pay deal the pay award effective from 1st January 2021 only would be a confirmed minimum of 1.6% or AWE (KAC3) escalator confirmed (September figure) + 0.3% ‘enhancement’ whichever is highest.

With acceptance of Option Two, the following changes to terms and conditions would apply:-

· An increase in sickness provision in-line with MLC of 112 days/16 weeks maximum for both sickness during a leave period and as a result of an accident/illness on board (as per MLC).
· A long tour bonus at a rate of £25/day for every day over a tour of duty of 105 days duration (conditions to apply).

AWE (KAC3) remains the indicator for Foreland and has been the index that they have used on the contract for pay talks since contract inception in 2002. This index has dipped recently due to furloughing of employees in the UK but has recently picked up again with the Sept-20 (provisional) rate showing 1.3% which is above the September RPI figure of 1.1% but in-line with the October RPI figure of 1.3%. The company has indicated to the Assistant National Secretary that it will continue to use the AWE (KAC3) indicator until the end of the current contract (2024).

In addition to the pay award, Foreland Shipping has also committed to make the following investments:-

· The provision and installation of VSAT fleetwide for all four vessels which greatly enhances comm’s in terms of internet/WIFI provision for members and the ability for crew calling FOC for example using WhatsApp.
· The formal acknowledgement and commitment by the Company to cover the cost for members on-going STCW 5-year refresher training which was not agreed during the previous pay talks and currently remains ‘open’ as to whether this is an employee or Company cost. This 5-year refresher training became mandatory in the UK for British seafarers to continue to go to sea under the STCW (Manila) Amendments from 01 January 2017 and was previously not a requirement. The cost of this training over the next 2 years is estimated to be in-excess of £300k.

After careful consideration, the union’s National Executive Committee has instructed me to inform the company of our rejection of their offer. Management has been informed of this decision and a meeting has been requested to seek an improved offer.

Additionally, I would be grateful for members could ensure that the RMT has the correct contact details (i.e. email and postal addresses) and employment details (i.e. workplace and grade) for you by logging onto the members area of the website or alternatively you can e-mail us at info@rmt.org.uk or call the Freephone helpline on 0800 376 3706.

I will keep you advised of all further developments.

Yours sincerely

Mick Cash
General Secretary