SWIRE PACIFIC SHIP MANAGEMENT LTD (SPSM Ltd.) Contracted Terms & Conditions (CTC) 1 st Edition : Aug/2013 Revision 1: Feb/2016
INDEX Article No. Subject Page no. 1 Application 4 2 Pre-employment and Medical 4 3 Probationary Service 5 4 Duration of Employment 5 5 Ratings Overtime 5 6 Leave and Holidays 6 7 Rest Periods 6 8 Wages 7 9 Allotments 7 10 Merit Bonus 7 11 Retirement Saving Scheme 8 12 Manning 8 13 Shorthand Manning 9 14 Crew s Effect 9 15 Termination of Employment 9 16 Repatriation 10 17 Misconduct 10 18 Medical Attention 11 19 Sick Pay 12 20 Maternity 12 21 Disability 12 22 Loss of Life Death in Service 13 Page 2 of 17
23 Insurance Cover 13 24 Food, Accommodation and Welfare 13 25 Personal Protective Equipment 14 26 Shipboard Safety Committee 14 27 Training and Development 15 28 Equality 15 29 Code of Conduct 15 Appendix I Bonus for Special job 16 Appendix II Disability Compensation 17 Page 3 of 17
Article 1: Application 1.1 This service condition applies to all seafarers employ on term-contract onboard all Singapore registered vessels where Singapore Government is party to MLC2006 Convention. This terms are also applicable to seafarers who are serving on Hong Kong registered vessels with PNG union awards. 1.2 Exclusion from this service condition are permanent employed staff who shall follow the SPSM Permanent Staff Service Conditions, PNG crew on PNG union awards and Filipino seafarers who shall conform to POEA terms and conditions. 1.3 A seafarer means any person who is employed or engaged or works in any capacity to whom this term applies. MLC means Maritime Labor Convention adopted by the General Conference of the International Labor Organization on 23 February 2006. 1.4 Each seafarer shall be governed by this term of service condition with effect from the date of departure from the country of domicile, until the date of arrival to the country of domicile in accordance with this Service condition. Article 2: Pre-Employment and Medical 2.1 Each seafarer shall undertake to serve the Company competently and shall undertake that they possess, and will exercise, the skill commensurate with the certificates that they declare to hold, which should be verified by the Company. 2.2 The Company shall be entitled to require that any seafarer shall have a satisfactory pre-employment medical examination, at Company expense, by a Companynominated doctor and that the seafarer answer faithfully any questionnaire on their state of health, which may be required. Failure to do so may affect the seafarer s entitlement to compensation as per Articles 18 to 22. The seafarer shall be entitled to receive a copy of the medical certificate issued in respect of such an examination which shall be MLC compliant. 2.3 Each seafarer shall read, understand and accept the terms herein before signing the Seamen s Employment Agreement (SEA) prior joining vessel. 2.4 The signed SEA is a legal binding document between the seafarer and the Company. And the appointed manning agencies are authorized to sign on behalf of the Company. Page 4 of 17
Article 3: Probationary Service 3.1 The probationary period shall only apply during the first term of employment with the Company and shall be one third of the contract length but in any case, no more than ten weeks. During this probationary period, the Company shall be entitled to terminate the employment prior to the expiry of the contract. In such an event compensation for premature termination of employment provided shall not apply. Article 4: Duration of Employment 4.1 A seafarer shall be engaged for the period specified in SEA and may be extended or reduced by mutual consent. The employment shall be automatically terminated upon discharge from vessel and arrival of home port, whichever is later. 4.2 Retirement age of seafarers is presently set at 60. Offer of employment beyond this age is possible and is subjected to performance, merit, and medical fitness. Article 5: Ratings Overtime 5.1 Overtime shall be recorded individually and in duplicate either by the Master or the Head of the Department. Fixed over time is set as per the published wage table or in individual s SEAs. 5.2 Such record shall be handed to the seafarer for verification every month or at shorter intervals. Both copies must be signed by the Master and/or Head of the Department as well as by the seafarer, after which the record is final. One copy shall be handed over to the seafarer. Any additional hours worked during an emergency directly affecting the immediate safety of the ship, its passengers, crew or cargo, of which the Master shall be the sole judge, or for safety drills or work required to give assistance to other ships or persons in immediate peril, shall not count for overtime payment. 5.3 Ratings required to: (a) Clean holds or de-muck tanks will be paid at the rate of (See Appendix 1) per hold/tank. (b) Clean boilers will be paid at the rate of (see Appendix 1) per job. (c) Clean Scavenge space will be paid at the rate of (See Appendix 1) per unit. These payments for special works as above will be equally distributed between the ratings and cadets performing the operation. Page 5 of 17
Article 6: Leave and Holidays 6.1 For the purpose of this service condition, Singapore gazetted holidays shall be followed. If holiday falls on a Sunday, the following working day shall be observed as a holiday. Filipino/PNG seafarers shall follow POEA/PNG union awards published holidays respectively. List of public holidays can be obtained from SPSM. 6.2 Each seafarer is entitled to leave period as shown in SEA. Shore leave shall be granted to benefit their health and well-being as long as it is within the operational requirements of their positions. Article 7: Rest Periods 7.1 Each seafarer shall have a minimum of 10 hours rest in any 24 hour period and 77 hours in any seven-day period. 7.2 This period of 24 hours shall begin at the time a Seafarer starts work immediately after having had a period of at least 6 consecutive hours off duty. 7.3 The hours of rest may be divided into no more than two periods, one of which shall be at least 6 hours in length, and the interval between consecutive periods of rest shall not exceed 14 hours. 7.4 Nothing in this Article shall be deemed to impair the right of the master of a ship to require a seafarer to perform any hours of work necessary for the immediate safety of the ship, persons on board or cargo, or for the purpose of giving assistance to other ships or persons in distress at sea. In such situation, the master may suspend the schedule of hours of work or hours of rest and require a seafarer to perform any hours of work necessary until the normal situation has been restored. As soon as practicable after the normal situation has been restored, the master shall ensure that any seafarers who have performed the work in a scheduled rest period are provided with an adequate period of rest. In addition, the STCW requirements covering overriding operational conditions shall apply. 7.5 A short break of less than 30 minutes will not be considered as a period of rest. 7.6 Emergency drills and drills prescribed by national laws and regulations and by international instruments shall be conducted in a manner that minimizes the disturbance of rest periods and does not induce fatigue. 7.7 The allocation of periods of responsibility on UMS Ships, where a continuous watch keeping in the engine room is not carried out, shall also be conducted in a manner that minimizes the disturbance of rest periods and does not induce fatigue and an adequate compensatory rest period shall be given if the normal period of rest is Page 6 of 17
disturbed by call-outs. Records of seafarers daily hours of rest shall be maintained to allow for monitoring of compliance with this Article. Article 8: Wages 8.1 The wages of each seafarer shall be calculated in accordance with their SEA and as per the applicable wage scale and the only deductions from such wages shall be proper statutory and /or other deductions as authorized by the seafarer. 8.2 The seafarer shall be entitled to payment of their net wages, after deductions, in US dollars, at the end of each calendar month together with an account of their wages. Any wages not drawn by the seafarer shall accumulate for their account and may be drawn as a cash advance. However, cash advance shall be limited to USD $750 per crew per month. 8.3 For the purpose of calculating wages, a calendar month shall correspond to the actual number of days in the month. Article 9: Allotments 9.1 Each seafarer to whom this Service condition applies shall be allowed to make monthly allotment of up to 80% of total wages less off leave pay, and after allowing for other deductions. 9.2 Company shall pay for outward remittance charges imposed by Company s banker at no cost to seafarers. However any imposition by overseas inward-house bank will be out of Company s jurisdiction. 9.3 Seafarer must ensure maintaining positive balance at all times. Article 10: Merit Bonus 10.1 Senior officers and electrical officers may receive annual merit bonus which reflect their performance during January to December period with minimum 4.5 months sea service during the calendar year. Service time for project and special assignment are included. 10.2 No bonus to be paid if an officer violates the Company drug and alcohol policy, and Code of Conducts, safety protocol or is responsible for any incident which seriously affecting the Company s interest and reputation or a Hull & Machinery and P&I claim or excessive unjustifiable ship operating cost. 10.3 A higher bonus will be awarded for performance above the ordinary, or for enhancing ship s performance and safety. Bonus award is entirely at Management s discretion and is tied with Company s overall financial performance. Page 7 of 17
Article 11: Retirement Saving Scheme (Pension) 11.1 The Company recognised the retirement need of our seafarer and initiated a Retirement Saving Scheme in 2008 for all employed seafarers. For each tour of sea service, Company contributes 5% of their basic wages to a common fund and manage by HSBC Institutional Trust Services (ASIA) Limited. 11.2 This benefits will reward seafarers who stay with the Company over a long term as it will ensure a lumpsum is available when they retire. The vesting period is as follows: Less than 3 years sea time Nil 3-4 years sea time - Seafarers receive 30% 4-5 years sea time - 60% More than 5 years sea time - 100% 11.3 The vesting period of 5 years or more applies when seafarers reaches 60 years of age regardless of the length of service and when the seafarer is declared permanently unfit for sea duty by Company doctor. 11.4 The Trustee will send to all members a statement detailing the contributions and investment earned on annual basis. 11.5 Exclusion from this scheme are trainees, cadets and seafarers on training budget, and include seafarers managed by 3 rd party crew management. Article 12: Manning 12.1 The Ship shall be competently and adequately manned so as to ensure its safe operation and the maintenance of a three-watch system whenever required and in no case manned at a lower level than in accordance with relevant and applicable international laws, rules and regulations. 12.2 Manning on board shall not fall below the minimum safe manning level Page 8 of 17
Article 13: Shorthand Manning 13.1 Where the complement falls short of the operational manning, for whatever reasons, the basic wages of the shortage category shall be paid to the affected members of the concerned department and share equally. Every effort shall be made to make good the shortage before the ship leaves the next port of call. 13.2 For the purpose of calculating short hand money, only basic wage plus fixed overtime is used. 13.3 No shorthand money shall be paid in cases where the vessel is idle, laid up in dry dock or at a yard for repairs or in congested ports where full manning is not required. Shorthand manning also does not apply to trainee positions. Article 14: Crew s Effects 14.1 When any seafarer suffers total or partial loss of, or damage to, their personal effects whilst serving on board the ship as a result of wreck, loss stranding or abandonment of the vessel, or as a result of fire, flooding or collision, excluding any loss or damage caused by the seafarer s own fault or through theft or misappropriation, they shall be entitled to receive compensation as prescribed in Singapore crew article and/or Merchant Shipping Act and in no case less than US$500. 14.2 The Company shall take measures for safeguarding property left on board by sick, injured or deceased seafarers and for returning it to them or to their next of kin. Article 15: Termination of Employment 15.1 The employment shall be terminated: a) upon the expiry of the agreed period of service b) when signing off owing to sickness or injury, after medical examination in accordance with Article 18, but subject to the provision of Article 22. 15.2 The Company may terminate the employment of a seafarer: a) by giving one month s written notice to the seafarer; b) if the seafarer has been found to be in serious default of his employment obligations in accordance with Article 17; c) upon the total loss of the ship, or when the ship has been laid up for a continuous period of at least one month or upon the sale of the ship. 15.3 A seafarer to whom this Service condition applies may terminate employment: a) for justified reasons, by giving one months notice to the company; b) When, during the course of a voyage it is confirmed that the spouse or, in the Page 9 of 17
case of a single person, a parent, has fallen dangerously ill. This provision shall also be applied with regard to the partner of a seafarer provided that this partner has been nominated by the seafarer at the time of engagement as the seafarers next of kin; c) if the ship is about to sail into a warlike operations area, in accordance with P&I club s declaration. d) if after any agreed grievance procedure has been invoked, the Company has not complied with the terms of this service condition; 15.4 A seafarer shall be entitled to receive compensation of two months basic pay on termination of their employment in accordance with 15.2(a) and (c), 15.3(c), (d), above. 15.5 It shall not be grounds for termination if, during the period of the service condition, the Company transfers the seafarer to another vessel belonging or related to the same owner/manager, on the same rank and wages and all other terms, however there shall be no loss of earnings or entitlements during the transfer and the Company shall be liable for all costs and subsistence for and during the transfer. Article 16: Repatriation 16.1 Repatriation shall take place in such a manner that it takes into account the needs and reasonable requirements for comfort of the seafarer. 16.2 During repatriation for normal reasons, the Company shall be liable for the following costs until the seafarers reach the final agreed repatriation destination, which can be either a place of original engagement or home: a) payment of basic wages; b) the cost of accommodation and food; c) reasonable personal travel and subsistence costs; d) transport of the seafarer s personal effects up to the amount agreed with the Company. 16.3 A seafarer shall be entitled to repatriation at the Company s expense on termination of employment as per Article 15 except where such termination arises under article 15.2(b), 17.1 and 17.2. Article 17: Misconduct 17.1 The Company may terminate the employment of a seafarer following a serious default of the seafarers employment obligations which gives rise to a lawful entitlement to dismissal, provided that the Company shall, where possible, prior to dismissal, give written notice to the seafarer specifying the serious default which has been the cause Page 10 of 17
of the dismissal. However serious breach of code of conduct like Drug and Alcohol violation (D&A), sexual harassment, physical assault or similar acts which could harm wellbeing and harmony onboard would be an outright dismissal 17.2 Smuggling, drug abuse and possession of objectable materials are serious crime in some countries. The Company may also terminate the employment of a seafarer if him being charged, fined or arrested by government official for violation of their country s law and orders. 17.3 In the event of the dismissal of a seafarer in accordance with this clause, the Company shall be entitled to recover from that seafarer s balance of wages the costs involved with repatriating the seafarer together with such costs incurred by the Company as are directly attributable to the seafarers proven misconduct. Such costs do not, however, include the costs of providing a replacement for the dismissed seafarer. 17.4 The company shall ensure that a fair, effective and expeditious on-board procedure is in place to deal with reports of breaches of employment obligations and with seafarer complaints or grievances. The procedures shall allow seafarers to be accompanied or represented during the procedure and provide safeguards against victimization for raising complaints that are not manifestly vexatious or malicious. Article 18: Medical Attention 18.1 A seafarer shall be entitled to immediate medical attention when required and to dental treatment of acute pain and emergencies. Company will bear cost of tooth extraction and filling. 18.2 A seafarer repatriated unfit as a result of sickness or injury, shall be entitled to medical attention (including hospitalisation) at the Company s expense: a) in the case of sickness, for up to 120 days after repatriation, subject to the submission of satisfactory medical reports; b) in the case of injury, for so long as medical attention is required or until a medical determination is made in accordance with clause 21.2 concerning permanent disability; c) in those cases where, following repatriation, seafarers have to meet their own medical care costs, in line with Article 18.3, they may submit claims for reimbursement within 6 months, unless there are exceptional circumstances, in which case the period may be extended. 18.3 Proof of continued entitlement to medical attention shall be by submission of satisfactory medical reports, endorsed where necessary, by a Company appointed doctor. If a doctor appointed by or on behalf of the seafarer disagrees with the assessment, a third doctor may be nominated jointly between the Company and the Page 11 of 17
seafarer s representative. Article 19: Sick Pay 19.1 When a seafarer is landed at any port because of sickness or injury, a pro rata payment of their basic wages plus fixed overtime shall continue until they have been repatriated at the Company s expense. 19.2 Thereafter the seafarers shall be entitled to sick pay at the rate equivalent to their basic wage while they remain sick up to a maximum of 120 days. The provision of sick pay following repatriation shall be subject to submission of a valid medical certificate, without undue delay. 19.3 However, in the event of incapacity due to an accident the basic wages shall be paid until the injured seafarer has been cured or until a medical determination is made in accordance with clause 21.2 concerning permanent disability. 19.4 Proof of continued entitlement to sick pay shall be by submission of satisfactory medical reports, endorsed, where necessary, by a Company appointed doctor. If a doctor appointed by or on behalf of the seafarer disagrees with the assessment, a third doctor may be nominated jointly between the Company and the seafarer and the decision of this doctor shall be final and binding on both parties. Article 20: Maternity 20.1 In the event that an officer becomes pregnant during the period of employment: a) the seafarer shall advise the master as soon as the pregnancy is confirmed; b) the Company will repatriate the seafarer as soon as reasonably possible but in no case later than the 26 th week of pregnancy; at the first convenient port of call; c) the seafarer shall be entitled to one month basic pay; Article 21: Disability 21.1 A seafarer who suffers permanent disability as a result of an accident whilst in the employment of the Company, including accidents occurring while travelling to or from the ship, and whose ability to work as a seafarer is reduced as a result thereof, but excluding permanent disability due to wilful acts or suicides shall in addition to sick pay, be entitled to compensation according to the provisions of this service condition. 21.2 The disability suffered by the seafarer shall be determined by a doctor appointed by the Company. If a doctor appointed by or on behalf of the seafarer disagrees with the assessment, a third doctor may be nominated jointly between the Company and the seafarer and the decision of this doctor shall be final and binding on both parties. Page 12 of 17
21.3 The Company shall provide disability compensation to the seafarer in accordance with APPENDIX 2, with any differences, including less than 10 % disability, to be pro rata. 21.4 Any payment affected under 21.1 to 21.3 above, shall be without prejudice to any claim for compensation made in law, but may be deducted from any settlement in respect of such claims. Article 22: Loss of Life Death in Service 22.1 If a Seafarer dies through any cause whilst in the employment of the Company including death from natural causes and death occurring whilst travelling to and from the vessel, or as a result of marine or other similar peril, but excluding death due to wilful acts, the Company shall pay the sums specified in the attached APPENDIX 2 to a nominated beneficiary and to each dependent child up to a maximum of 4 (four) under the age of 18. The Company shall also transport at its own expense the body to Seafarer s home where practical and at the families request and pay the cost of burial expenses. If the Seafarer shall leave no nominated beneficiary, the aforementioned sum shall be paid to the person or body empowered by law or otherwise to administer the estate of the Seafarer. 22.2 Any payment effected under this clause shall be without prejudice to any claim for compensation made in law but may be offset against any such payments. Article 23: Insurance Cover 23.1 The Company shall conclude appropriate insurance to cover themselves fully against the possible contingencies arising from the Articles of this service condition. Article 24: Food, Accommodation and Welfare 24.1 The Company shall provide, as a minimum, accommodation, recreational facilities and food and catering services in accordance with the standards specified in Title 3 to the ILO Maritime Labor Convention 2006 and shall give due consideration to the Guidelines in that Convention. 24.2 To encourage work-life balance, carriage of family members is possible for officers and petty officers except 5 th engineer, 4 th officer and Cadets. Duration of each shall not exceed two month. Senior officers are allowed longer period. Cost of living onboard is provided free by the Company. 24.3 Letter of indemnity, flights, medical fitness without pregnancy and separate insurance cover shall be arranged by officer concerned. Page 13 of 17
Company may assist in logistic arrangement and recover expenses from officer. Minimum age of child is one years old. 24.4 Approval for family carriage is needed and is subjected to LSA capacity, anticipated contract works and exigency of services. Approval is at Management discretion. Article 25: Personal Protective Equipment 25.1 The Company shall provide the necessary personal protective equipment in accordance with ISM/IMO regulations, or any applicable national regulations that specify any additional equipment, for the use of each seafarer while serving on board. 25.2 Seafarers should be advised of the dangerous nature and possible hazards of any work to be carried out and instructed of any necessary precautions to be taken as well as of the use of the protective equipment. And winter gears will also be provided for out-door work. 25.3 Seafarers should use and take care of personal protective equipment at their disposal and not misuse any means provided for their own protection or the protection of others. Personal protective equipment remains the property of the Company. Article 26: Shipboard Safety Committee 26.1 The Company shall facilitate the establishment of an on board Safety and Health Committee, in accordance with the provisions contained in the ILO Code of Practice on Accident Prevention on Board Ship at Sea and in Port, and as part of their safetymanagement system as per the requirements of the ISM Code. 26.2 The Company shall provide a link between the Company and those on board through the designation of a person or persons ashore having direct access to the highest level of management as per the requirements of the ISM Code. The Company shall also designate an on board competent safety Officer who shall implement the Company s safety and health policy and program and carry out the instructions of the Master to: a) improve the crew s safety awareness b) investigate any safety complaints brought to her/his attention and report the same to the Safety and Health Committee and the individual, where necessary; c) investigate accidents and make the appropriate recommendations to prevent the recurrence of such accidents; and d) carry out safety and health inspections. Page 14 of 17
26.3 The company shall also ensure that each vessel shall have a Crew Welfare Committee that will be comprise of its crew members who will look into the welfare matters relating to the crew. Article 27: Training and Development 27.1 Seafarers are responsible to keep their license, Certificate of Competency (COC) and SOLAS related training certificates re-validated according to latest STCW 95 Convention (amended). Officers and engineers are encouraged to do SOLAS courses once in every 5 years and to keep up to date with latest legislation requirements and enhancing knowledge. 27.2 Reemployment is possible only when all mandated training certificates are valid. Sponsorship provided by Company for officers COC upgrading shall be based on merit and is bonded with prescribed service period. 27.3 For Company initiated training programs (non-mandatory), officers are required to make time for it at least once in a year. Company shall arrange to pay each Seafarer the basic wage during the training period. Economical accommodation and transport arrangement will be on Company s account. 27.4 The Company believes in nurturing and developing young talent and strive to provide training facilities to selected trainees. Cadets, Deck/Engine/Cook trainee, Junior Electrician, 4 th officer and 5 th Engineers are considered as Trainee. Article 28: Equality 28.1 Each seafarer shall be entitled to work, train and live in an environment free from harassment and bullying whether sexually, racially or otherwise motivated. The Company will regard breaches of this undertaking as a serious act of misconduct on the part of seafarers. Article 29: Code of Conduct 29.1 Every seafarer must ensure compliance with China Navigation s Code of Conduct at all times. Any violations of the Code of Conduct will lead to disciplinary action or dismissals. Kindly note a copy of the code of conduct is kept on board and is also available in the company website for referencing purposes. Page 15 of 17
Appendix 1 Bonus for Special job The table below shows the special bonus applicable to ratings/cadets. Total amount payable is to be distributed equally amongst the ratings/cadets who participated in the job. Master/Chief Engineer is advised to create PO with job s detail, and seek confirmation from respective fleet/ship manager before payment. Vessel Type S Series C Series K Series W Series E Series US$ M/E Scavenge cleaning/per job US$ Boiler/Per job US$ Tank cleaning/per job 140 165 150 165 US$ Economizer /Per job Miho Class 110 80 150 80 Do note that ratings are not allowed to claim extra overtime & special bonus at the same time. Page 16 of 17
Appendix 2 - Disability Compensation In the event a seafarer suffers permanent disability in accordance with the provisions of Article 21 of this Service condition, compensation scales (ILO standard) are listed as follows: Disability ratio Rate of Compensation (in USD) % Ratings Junior Officers Senior Officers 100 115,000 150,000 200,000 75 86250 112500 150000 60 69000 90000 120000 50 57500 75000 100000 40 46000 60000 80000 30 34500 45000 60000 20 23000 30000 40000 10 11500 15000 20000 1) Senior Officers for the purpose of this clause means Master, Chief Officer, Chief Engineer and 2 nd Engineer. 2) Loss of Life Death in Service Death in service benefits as provided in Article 22 of this Service condition to the nominated beneficiary and to each dependent child (maximum 4 under the age of 18) US$ 8,000 Page 17 of 17