GS NEWS. GS NEWS p. 1. NAUTILUS UPDATE p. 2. INTERNATIONAL ISSUE p. 3. PHILIPPINE LEGAL ISSUES p. 5 APRIL 2017 NEWSLETTER APRIL 2017

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GS NEWS p. 1 NAUTILUS UPDATE p. 2 INTERNATIONAL ISSUE p. 3 GS NEWS Picture 1 - Inauguration of new office in Cebu City To provide our principal their needs and expectation concerning with the timely deployment of crew, Global Gateway Crewing Services, Inc., had move and transfer to its new office at 407, Colon Development Corporation Building 1, Osmena Blvd., Cebu City. PHILIPPINE LEGAL ISSUES p. 5 The transfer to new office and its inauguration shows the full commitment of the Management to carry out an effective and efficient process flow in providing quality service to its principal. Owner s Representative Mr. Kostas Panagiotidis, Mr. Spyridon Mimikos, Recruitment Administrator Joel Provido and Mrs. Esmeralda Bravo, President and General Manager of Global Gateway Crewing, Services, Inc., had been grateful for the vast expansion of Global Gateway Crewing Services, Inc., to the Maritime Industry. Picture 2 - Inauguration of new office in Cebu City Picture 3 - Inauguration of new office in Cebu City 1

NAUTILUS UPDATE It is a great honor and pride of Nautilus Pacific Maritime Training Center, Management to pass and be certified by one of the prominent and leading Certifying body in the Maritime Industry, which is the American Bureau Shipping (ABS). NPTMCI issued a certificate as compliance to the industry Standard when it comes to its training facilities in relation to STCW 2010 courses. The certificate of compliance issued by ABS, served as an encouragement to NPMTCI Management and Staff to strive harder and to maintain its reputation in providing an excellent education and training. It is likewise the commitment of NPMTCI Management to continuously innovate and customize training courses in accordance to the needs of its client and to adopt the recent event happening in the Maritime Industry without compromising the quality of its service and training provided to the seafarer. On the other hand the following course have been audited, approved and accredited by ABS are: a. Polar Code & Ice Navigation b. Ship Handling & Maneuvering (SHM) c. Bridge Resource Management (BRM) d. Bridge Team Management (BTM) e. Engine Resource Management (ERM) f. Collision Avoidance (CA) g. Incident Investigation & Root Cause Analysis (IIRCA) 2

INTERNATIONAL ISSUE IMCA ENGAGES IN SEAFARER S WAGES PAYMENT DURING PIRACY AT ILO MEETINGS Source: IMCA The International Marine Contractors Association (IMCA) actively participated, on behalf of the Maritime Employers Group, in the International Labour Organization (ILO) Working Group of the Special Tripartite Committee (STC), established under the Maritime Labour Convention (MLC) the international treaty covering minimum working and living standards for seafarers. The Working Group s meeting took place in Geneva, Switzerland, from 3 to 5 April 2017. It brought together over 150 representatives from Governments, employers organizations and seafarers associations, officials from ILO, IMO and civil society organizations to examine issues related to the protection of seafarers wages when the seafarer is held captive on or off the ship as a result of acts, such as piracy or armed robbery against ships. The Group was assigned an additional task, which was to consider recommendations on improvements to the process for preparing proposals for amendments to the Code of the MLC, 2006, for consideration by the next STC. Despite the severe time pressure, the Working Group met its objectives, which were to prepare proposals and produce reports for the third meeting of the STC, taking place in April 2018. Discussions welcomed Speaking at the meetings, Eleni Antoniadou, IMCA s Policy and Regulatory Affairs Adviser, welcomed the discussions and expressed IMCA s appreciation for previous amendments to the MLC (that came into force as of 18 January 2017), which protect abandoned seafarers, and provide financial security for compensation to seafarers and their families in cases of seafarers death or long-term disability. The Maritime Employers Group was successful in demonstrating that there was no compelling need to consider the establishment of an additional financial security system to address cases of non-payment of wages during piracy or armed robbery, on the grounds that financial security in cases of abandonment already exists and covers instances of non- payment of wages. 3

The meetings were guided by a background paper for the preparation of proposals related to the protection of seafarers wages when the seafarer is held captive on or off the ship as a result of acts such as piracy or armed robbery against ships. The Maritime Employers Group, on various occasions, reminded those present that it was always clearly stated that there may be a number of options to choose from, including standalone guidance, contractual changes, or no action at all or an amendment to the code of the MLC, and that all options should be open for discussion at the Working Group meeting, and at the next STC. As a result, the final report of the Working Group includes three different proposals to the next STC related to the protection of seafarers wages during piracy or armed robbery against ships. Improvements to the process for preparing proposal for amendments to the Code of the MLC were one of the tasks undertaken by the Drafting Group during the course of the meeting. Full support from IMCA IMCA expressed its full support for establishing a clear and efficient process at ILO for proposing amendments to the MLC, as this would provide transparency, avoid overlapping regulation, and also ensure proportionate measures on issues that arise. The current lack of a robust amendment process has led to matters such as the piracy wages being discussed for potential regulation, even though there is no solid data on which to base such regulation. The Working Group issued a template for submitting proposals for amendments to the Code of the MLC, 2006 in accordance with article XV of the Convention, which will be finalized by the STC next year. IMCA looks forward to continuing discussions in an effective and cooperative manner at the next STC meeting in April 2018. As Eleni Antoniadou explains: We are delighted that the Convention has been ratified by 82 Members. However, we would still like to see the Convention ratified in many more countries to reach the original objective of ratification in line with MARPOL, SOLAS and STCW, and we offer our continued support to the Office to encourage such ratifications. 4

IMCA, as the representative of marine contractors, fully recognises that we have a responsibility towards the seafarers employed on the world s vessels, and we will continue to work to ensure our members promote ratification and effective implementation of the Convention. PHILIPPINE LEGAL ISSUE Supreme Court invalidates opinion of third doctor as not definite and conclusive; seafarer was awarded full disability benefits as unable to work for more than 240 days. Facts: During employment, the seafarer suffered a fracture to his right femur because of a hard fall. Upon his repatriation, he was referred to the company-designated doctor for examination. The company designated doctor assessed the seafarer disability at grade 10. Not satisfied with the assessment the seafarer sought the opinion of his personal doctor who assessed him with a grade 3 disability. Likewise parties agreed to appoint a doctor who will issue a third medical opinion. NLRC Decision: On the basis of third doctor opinion, the Labor Arbiter rendered decision awarding the seafarer disability benefits based on the grade 9 assessment of the third doctor. NLRC Commissioner: The Labor Arbiter decision was appealed to NLRC Commissioner, wherein it rendered a decision of full disability benefits as the assessment of the third doctor was issued after 240 days. Court of Appeals Decision: The court of appeal maintained the decision of the Labor Arbiter and reasoned that the 240 day period to render an assessment is not applicable to the third doctor. 5

Supreme Court Decision: When the case reached the Supreme Court, the NLRC s award of full disability benefits was reinstated with the following argument: Seafarer entitled to full disability benefits as unable to work for more than 240 days The court noted that there is evidence to show that seafarer has remained incapacitated to work for more than 240 days as he was even declared unfit to work by the third doctor. Moreover, the inclusive assessment of the third doctor and the seafarer s prolonged disability only served to underscore that the company-designated physician himself failed to render a definitive assessment of seafarer s disability. As seafarer was actually unable to work even after expiration of the 240 day period and there was no final and conclusive disability assessment made by the third doctor on his medical condition, he should be entitled to full disability benefits. It should be remembered that in disability compensation, it is not the injury which is compensated, but rather the incapacity to work resulting in the impairment of one s earning capacity. Greece Global Seaways Ltd., 182, Androutsou Str. 185 35, Piraeus Ph.: +30 21 11087000, Email: piraeus@globalseaways.com, Website: www.globalseaways.com 6