Employment Committee minutes From the meeting held on Tuesday 11 October Park Street, London, SE1 9EQ

Transcription

1 Employment Committee minutes From the meeting held on Tuesday 11 October Park Street, London, SE1 9EQ Present Nigel Lehmann-Taylor Chairman Simon Cox Absolute Shipping Ltd (by conference call) Caroline Elvidge British Antarctic Survey Saurabh Sachdeva BP Shipping Chris Reynolds Clyde Marine Training Gordon Craig Clyde Marine Recruitment Neil Carrington CESG Ltd Don Millar Chiltern Maritime Ltd Rebecca Gilbert Condor Ferries Ltd Dan Reed DFDS Seaways Ltd Dan Willis Disney Cruise Lines Ltd Tim Hurst Global Marine Systems Ltd Will Steed Hill Dickinson LLP Simon Olszowski J S Hamilton & Co David Skinner J S Hamilton & Co Cliff Roberts James Fisher PLC Nicola Gray - Mackinnons LLP Fiona Stuart National Oceanographic Centre Nicholas Moore Nicholas Moore Specialist Employment Lawyers Mike Deegan Noble Caledonia Thomas Campbell Northern Marine Group Ltd Barrie Finlayson Northern Marine Group Ltd Lesley Cotton P&O Ferries Ltd Andrew Shaw P&O Ferries Ltd Phil Collier Phil Collier Associates Sarah Munro Pinsent Masons Rhett Harris Precious Alliance Ltd David Colclough Princess Cruises Ltd Peter Wright Saga Shipping Ltd Paula Brockley Saga Shipping Ltd John Thomson Sealion Shipping Ltd Paul Gellately Serco Marine Ltd Paul Veldhuizen Shell ITS Co Ltd Ian Spreadborough Ship Safe Training Group Mick Ambrose Stena Line Clara Mohl Schack Svitzer Ltd Sandra Millar V Ships Ltd Dieter Jaenicke Viking Recruitment Ltd UK Chamber staff: Tim Springett Policy Director (Employment and Legal) Ian Cloke Policy Manager Glenys Jackson MNTB The Chamber of Shipping Ltd. No Reg. in England at above office address.

2 Apologies for absence were received from Gemma Griffin (for whom Nigel Lehmann-Taylor deputised as Chairman), Nick Saul (BachmannHR Group), Hilary Airton (Carnival UK Ltd), Mike Rudd (Intrada Ltd) and Richard Graham (Royal Fleet Auxiliary) 1. Minutes of last meeting: 16 June 2016 (EMP/16-22) The minutes of the meeting held on 16 June 2016 were approved. 2. Matters arising 2.1 Dynamic Positioning Operator Training It was reported that improvements made by the Nautical Institute (NI) to the system of Dynamic Positioning Operator (DPO) certification had significantly reduced the backlog of applications. 2.2 National Minimum Wage: BIS Review of Scope of Application It was reported that the Department for Business, Innovation and skills had been renamed the Department for Business, Energy and Industrial Strategy. It was reported that guidance on the application to seafarers of the National Minimum Wage (NMW) had not yet been published. It was noted that the unions wanted a much wider application of the NMW to apply to non UK seafarers serving on UK flagged ships, for example. 2.3 Review of impact of Equality Act 2010 (Works on Ships and Hovercraft) Regulations 2011 It was reported that the review had been completed on 31 July 2016 and there were no changes to the regulations. It was felt that this was a good outcome for the maritime sector. 2.4 Windstar v Harris Employment Appeal Tribunal Ruling It was reported that Windstar had considered making an appeal to the Court of Appeal following the decision of the Employment Appeal Tribunal (EAT) to uphold a ruling by the Employment Tribunal (ET) that it had jurisdiction to hear an unfair dismissal complaint from Mr Harris. The Court had indicated that the appeal might have a reasonable chance of success. However, both parties had agreed to settle the claim. 3. Pay settlements for seafarers The Chairman invited members to provide details of pay settlements that had been reached in their companies. Details may be found at Appendix A. 4. Result of EU membership referendum implications for employment (EMP/16-27) It was reported that, following the vote to leave the European Union, the chamber had been working on a manifesto of policy objectives. Some of these related to the UK s position and policies as a non-member of the EU, whilst others would constitute chamber policy objectives in any case.

3 It was reported that the chamber s research had indicated that the impact of EU law on employment in shipping was relatively minor. Most laws derived from the ILO Maritime Labour Convention, 2006 (MLC) or domestic provisions. In addition, it was considered that changes to employment laws that originated from the EU, such as those on part-time, fixedterm and agency work, were unlikely in the short to medium term. In the employment field, the chamber would call for: A guarantee of free movement of persons from other EEA Member States into the UK in exchange for parallel guarantees from those States for UK nationals The continuation of mutual recognition of seafarers qualifications throughout the EEA The implementation in the UK of Directive 2015/1794, which amended the directives on protection of employees following their employer s insolvency, European Works Councils, information and consultation of employees, collective redundancies and transfers of undertakings as regards seafarers Extension of the Seafarers Earning Deduction so that all UK seafarers can benefit Protection of the National Insurance Contributions (NICs) of UK-resident seafarers Members indicated broad support for the UK Chamber s manifesto. They considered it very important that the free movement of people be maintained. 5. ILO Maritime Labour Convention, 2006 (EMP/16-28) 5.1 Working Group of Special Tripartite Committee - consultations It was reported that the ILO Special Tripartite Committee had established a tripartite working group to agree a mechanism for the submission of future proposals for amendments to the MLC and to examine issues related to the protection of seafarers wages when the seafarer was held captive on or off the ship as a result of acts such as piracy or armed robbery. The chamber was represented on the working group. It was noted the ILO had asked the group for views on whether shipowners should be required to continue to pay wages to seafarers who were held captive as a result of an act of piracy or armed robbery and, if so; What should be included in wages? Over what period of time should wages be paid? Should shipowners be prevented from terminating the Seafarer Employment Agreement whilst the seafarer is held captive? Should shipowners be required to provide financial security to ensure the payment of wages in these circumstances? Should other situations in which a seafarer might be held be taken into account? It was felt that when seafarers were held captive on board, they still maintained the ship where possible and should be paid. When a ship was captured Shipowners were active to ensure the safe release of seafarers and any guidance to help would be welcomed. It was noted that P&I clubs viewed payment of wages as the responsibility of the shipowner and would not provide financial security in these circumstances. 5.2 MCA consultation on changes to Hours of Work regulations It was reported that MCA was consulting on proposed consolidated Merchant Shipping (Hours of Work) Regulations, with the aim of bringing the requirements into line with the

4 Manila amendments to the STCW Convention, in addition to the MLC. The consolidated regulations incorporated the limitations on authorised exceptions to the minimum hours of rest inserted into STCW, which had been applied administratively in accordance with MGN 448(M) - since they came into force internationally. MCA proposed to maintain the exclusion of ships navigating exclusively in inland waters and waters within, or closely adjacent to, sheltered waters or areas where port regulations apply. The UK regulations implementing the MLC define these as UK-registered ships that remain within 60 miles of a safe haven in the UK and do not call any ports in any other countries. This would allow such ships that currently operate an 8 hours on-8 hours off work pattern to continue to do so, even though this was not permitted by STCW. Members supported the MCA s proposal in this regard. 5.3 Port state control Concentrated Inspection Campaign It was reported that the Paris Memorandum of Understanding (MoU) on Port State Control was undertaking a Concentrated Inspection Campaign (CIC) to verify compliance with the MLC, which would last until 30 November Ships procedures and measures that were in place for MLC compliance would be checked in detail. It was noted that the Irish administration had started their inspection campaign early. Members whose ships had been inspected did not report any concerns. 5.4 Shipowners Liability for Sick and Injured Seafarers It was reported that the chamber had welcomed a letter from MCA stating that sickness and employment injury benefits for seafarers could be regulated by Collective Bargaining Agreements even where these did not conform strictly to UK regulations and confirming that the moratorium on enforcement action in respect of sick pay provisions would continue until the regulations were revised. However it had questioned a statement from MCA that it would expect the overall level of protection for seafarers under a CBA to be at least equal to what their entitlement would be under the regulations. It was noted that the chamber was awaiting a response and would raise this matter at the MLC Tripartite Working Group on Thursday 13 October Other concerns of members It was reported that MCA had opened a consultation on amendments to UK regulations to implement the amendments to Standards A2.5 and A4.2 of the MLC, concerning the provision of financial security by shipowners in respect of claims for death, personal injury and abandonment of seafarers. It would provide a commentary for members and seek their views. 6. Recovery Clauses in Training Agreements Draft guidance (EMP/16-29) It was reported that the committee had previously agreed that the chamber should prepare draft guidance on the use of clauses in training agreements that permit a training company to recover some of the costs of training an officer in certain circumstances, with a view to seeking support from Nautilus International for their adoption as an industry standard. The chamber had presented draft guidelines at the meeting of the committee held on 8 October The draft was refined by an ad hoc working group established by the Committee and then approved by the Committee on 16 June 2016.

5 It was noted that Nautilus International had responded with their comments to the draft Training Agreement. Its main argument was that if the cadet could justify that their on board experience was not good then the company could not recover costs from the cadet. It was felt that this was very subjective and could be abused. It might be possible to agree a set of approved objectives throughout the training period that could be measured, phase by phase, as a way forward. It was felt that members needed more time to consider the proposal and it was agreed to circulate the comments from Nautilus International to the working group for further consideration. 7. Review of SMarT scheme (EMP/16-30) It was reported that the Department for Transport (DfT) was undertaking a review of the scheme of Support for Maritime Training (SMarT), in line with a recommendation arising from the Maritime Growth Study. This was expected to have commenced in September but had been delayed pending the conclusion of a DfT Seafarer Projections Review. In the meantime the chamber and the Merchant Navy Training Board (MNTB) had developed a proposal aimed at increasing the employability of newly-qualified officers and offsetting some of the costs of training. The proposal was called SMarT Plus. Approximately 50% of the costs of training would be paid to companies who provide the Foundation Degree or Higher National Diploma training (as these give subsequent exemptions for higher Certificates of Competency (CoCs)) and guarantee a minimum of twelve months of employment as Officer of the Watch post-certification. It was noted that the intention of SMarT Plus was to increase numbers but funding was only secured for HND and Foundation Degree courses. It was expected that SMarT funding would cover all college costs. It was felt helpful if companies would send letters to the chamber stating that they expected to provide employment to newly qualified OOWs if the SMarT Plus proposal were accepted. Some members indicated that they might be able to employ some of the cadets in training but it was difficult to guarantee employment of all cadets. It was agreed to send further information to members on the value of employing cadets, so that members were in a better position to indicate their intention of employing newly qualified OOWs. 8. Apprenticeship Levy (EMP/16-31) It was reported that, in August 2016, the Department for Education (DfE), which had been given responsibility within the re-shuffled Government for apprenticeship policy, had published additional detail of its intentions on how employers will be able to access external funds for apprenticeships, once the Apprenticeship Levy takes effect. It was stated that the new funding arrangements would be available from 1 May Along with other employers associations, the chamber was calling on the Government either to delay the introduction of the Apprenticeship Levy or to permit greater flexibility over the types of training for which the funds raised may be used. It also supported the continuing efforts of the MNTB to obtain approval for the outstanding Trailblazer apprenticeship schemes for ratings. It was noted that most members would be required to pay the Apprenticeship Levy and the level of their contribution would be dependent on the size of their payroll. Whilst the levy

6 would not accrue for seafarers employed offshore, most members would be required to pay the levy in relation to their shore based employees in the UK. Some members indicated their contribution would be in the region of 600K and this might affect their training expenditure, if the levy did not permit greater flexibility over the types of training for which the funds could be used. It was noted that a seminar covering the levy was to be held at the UK Chamber of shipping following the meeting. 9. Merchant Navy Training Board (EMP/16-32) Members received a report on recent MNTB activity, which included rating apprenticeship development and Ratings Task Force activity, the annual re-approval process of officer cadet training programmes at each of the maritime education and training institutions, SMarT Plus strategy development and course recognition. It was reported that the impasse situation regarding qualifications within the Maritime Caterer apprenticeship standard had been placed before Robert Halfon of the (Department for Education (DfE)) for a resolution, with a copy sent to the Shipping Minister, Rt Hon John Hayes CBE MP. A response was awaited. Meanwhile, work was continuing on the engine room Mechanical Mechanic Standard with the Royal Navy. It was likely that an expression of interest would be submitted to the DfE for development of an on board services apprenticeship. It was reported that the MNTB and the chamber had participated in two recent events in Dover; the official opening of the Marine Survival Complex at the Maritime Skills Academy in Dover on 8 September and the passing-out ceremony for the first graduates of the DFDS apprenticeship programme on board the mv Dover Seaways on 9 September. 10. Secretary s report (EMP/16-33) 10.1 Earnings survey 10.2 Proposals to prohibit non-eea recruitment Government consultation 10.3 Health and Safety Sub-committee 10.4 Warlike Operations Area Committee Reports on these items were received and noted. 11. Any other business It was reported that the Crimes at sea Seminar would be held at the offices of Hill Dickinson on 19 October Dates of 2017 meetings It was proposed that, subject to the agreement of the Chairman, meeting of the committee would be held on the following dates in 2017; Tuesday 21 February Wednesday 7 June Thursday 12 October

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9 SEAFARERS PAY SETTLEMENTS 1 January 11 October 2016 COMPANY PERCENTAGE PAY INCREASE EFFECTIVE OFFICERS RATINGS DATE Absolute Shipping Frozen Frozen 1 April 2016 Carnival UK 2% 2% 1 January 2016 Gardline Frozen Frozen Global Marine Systems Ltd Frozen Frozen Maersk Line 1.8% 1 April 2016 Maersk Offshore (Bermuda) 1.8% 1 April 2016 Maersk Offshore (Guernsey) 1.8% 1 April 2016 Maersk Supply 0% 1 June 2016 Maersk Tankers 1-6% 1 January 2016 NMM Frozen 0.75% 1 January 2016 Princess and P&O Australia 3% 3% 1 January 2016 RFA (public sector cap) 1% 1% 1 April 2016 Saga 2% 2% 1 February 2016 Shell 0-4% 1-2% 1 February 2016 Stena Line 1.25% 1.25% 1 January 2016 Svitzer UK (except where a 2 year deal was agreed in 2015) P&O Ferries (year 1 of 2 year deal) 0% 0% 1 April % 1.8% 1 January 2016