Seafarers in the ASEAN Region 9789814377188

Table of contents :
Contents
List of Exhibits
Foreword
Acknowledgements
Introduction
PART I. ISSUES
1. ASEAN Seafarers: An Overview
2. Organization and Management of Seafaring in the ASEAN Region
3. Training of Seafarers in the ASEAN Region
4. ESCAP Involvement and the Impact of Technical Changes on Seafarer Training
5. Employment and Hiring Practices from the Viewpoint of Shipowners, Manning Agencies and Unions
6. Wages, Conditions of Work and the Welfare of ASEAN Seafarers
7. Legal Aspects Governing ASEAN Seafarers
8. Report on the Seafarer Survey
9. The Seafarer in the ASEAN Region: Directions for the Future
PART ll. COUNTRY REPORTS
10. Indonesia
11. Malaysia
12. Philippines
13. Singapore
14. Thailand

Citation preview

SEAFARE RS IN THE ASEAN REGION

Contributors

Assada Mitmanochai Yuree Company Ltd Bangkok, Thailand Mary R. Brooks Dalhousie University Halifax, Canada Chia Lin Sien National University of Singapore Singapore Goenawan Danuasmoro Pendidikan dan Latihan Ahli Pelayaran Jakarta Indonesia Edmond M.J. Cortcn ESCAP Bangkok 'fhailand

Ghani Ishak Malaysian International Shipping Corporation Berhad Kuala Lumpur Malaysia Norman Letalik National University of Singapore Singapore A. Francisco J. Mier Philippine Ports Authority Manila Philippines Ong Tiong Hui Singapore Polytechnic Singapore Karmeihan Sabaroedin Pendidikan dan Latihan Ahli Pelayaran Jakarta Indonesia

SEAFARERS IN THE ASEAN REGION

Edited by

Mary R. Brooks Dalhousie University

ASEAN Economic Research Unit Institute of Southeast Asian Studies in collaboration with Institute of Asian Studies, Chulalongkom University and Oceans Institute of Canada

Published by Institute of Southeast Asian Studies Heng Mui Keng Terrace Pasir Panjang Singapore 0511 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Institute of Southeast Asian Studies. ©

1989 Institute of Southeast Asian Studies

The responsibility for facts and opinions in this publication rests exclusively with the authors and their interpretations do not necessarily reflect the views or the policy of the Institute or its supporters. Cataloguing in Publication Data Seafarers in the ASJ:AN region/edited by Mary Brooks. Papers presented at the Workshop on the Seafarers in the ASEAN Region organized by the Institute of Southeast Asian Studies and Chulalongkorn University/Dalhousie Ocean Studies Programme, Bangkok, 14-16 Dec. 1985. !. Seamen - ASEAN countries - Congresses. I. Brooks, Mary R. II. Workshop on the Seafarers in the ASEAN Region ( 1985: Bangkok) III. Institute of Southeast Asian Studies (Singapore). IV. Chulalongkom University/Dalhousie Ocean Studies Programme. HD8039 S4S43 1989 ISBN 981-3035-13-7 Typeset by International Typesetters Printed in Singapore by Loi Printing Pte Ltd.

Contents

List of Exhibits

Vll

Foreword

lX

Acknowledgements

Xl

Introduction

Xll

PART 1: ISSUES

l. ASEAN Seafarers: An Overview Chia Lin Sien

3

2. Organization and Management of Seafaring in the ASEAN Region A. Francisco]. Mier and Ong Tiong Hui

12

3. Training of Seafarers in the ASEAN Region Chia Lin Sien

23

4. ESCAP Involvement and the Impact of Technical Changes on Seafarer Training Edmond M. ]. Carlen

33

5. Employment and Hiring Prdctices from the Viewpoint of Shipowners, Manning Agencies and Unions Ghani Ishak, A. Francisco]. Mier, Assada Mitmanochai and Ong Tiong Hui

44

6. Wages, Conditions of Work and the Welfare of ASEAN Seafarers Ghani Ishak

57

7. Legal Aspects Governing ASEAN Seafarers Norman Letalik

91

8. Report on the Seafarer Survey Mary R. Brooks

108

9. The Seafarer in the ASEAN Region: Directions for the Future Mary R. Brooks and Chia Lin Sien

130

Contents

Vl

PART II: COUNTRY REPORTS

139

10. Indonesia K. Sabaroedin and Goenawan Danuasmoro

141

ll. Malaysia Ghani Ishak

166

12. Philippines

183

A. Francisco]. Mier

13. Singapore

207

Chia Lin Sien

14. Thailand Assada Mitmanochai

226

List of Exhibits

2.1 2.2 2.3 2.4 2.5 2.6

The SI Model Organizational Organizational Organizational Organizational Organizational

4.1

Southeast Asia Regional Trade Area

37

5.1

54

5.4 5.5

Number of Seaman's Books Issued by Directorate of Shipping and Harbours, Indonesia, 1981 -July 1985 Number of Seafarers Employed by Foreign Shipping Companies as Registered by KPI (Indonesia) Number of Seafarers Employed by Foreign Shipping Companies as Registered by DOFSAH MISC Staff Composition, October 1985 PNSL Staff Statistics, September 1985

6.1

Wages Comparison

8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8

Quota Sample Allocation and Collection Seafarer Profile by Flag of Registry Seafarer Profile by Type of Ship Mean Rating for Each Flag of Registry Mean Rating by Flag of Registry Mean Rating by Certificate and Age Owner Nationality and Management Style Mean Rating Mean Rating for Each Ship Type

110 120 121 122 123 125 126 127

Organizational Structure for the Training and Education of Indonesian Seafarers

149

5.2 5.3

10.1

Structure: Structure: Structure: Structure: Structure:

Malaysian Seafaring Industry Indonesian Seafaring Industry Philippine Seafaring Industry Singaporean Seafaring Industry Thai Seafaring Industry

12 14 IS

16 17 18

55 55 56 56 58

List of Fxhibits

Vlll

10.2 10.3 10.4 10.5 10.6

Mandatory Manning Requirements The Strata Programme Private Maritime Schools in Indonesia Shipping Companies Registered by SeaCom The Reduction of Indonesian Fleets from 1982 to 1985

154 158 159 160 164

11.1

Organizational Structure: Ministry of Transport, Malaysia Manning Requirements, Malaysia Malaysian Maritime Academy (Academy Laut Malaysia)

168 177 179

Number of Enrollees and Graduates in Maritime Schools, 1976-83 Number of Seamen Processed, 1975-85 Processed Sea-Based Workers by Major Categories, 1980-85 Breakdown of Board Examinees (1980-84): Government vs Private Schools Number of Seafarers by Flag of Registry, 1982-85 Scale of Salaries (POEA Adopted Rates)

191

11.2 11.3 12.1 12.2 12.3 12.4 12.5 12.6 13.1 13.2 13.3 13.4 13.5 13.6

Organization Chart for the Seafaring Industry in Singapore Officers Required on Singapore-Registered Ships International Conventions Ratified by Singapore Courses Conducted by TS Singapore Number of Crew Agreements, Engagements and Discharge of Seamen on Singapore and Foreign-Flag Ships, 1978-84 Minimum Basic Salary Payable to Registered Seamen

193 193 194 195 197 209 212 215 217 219 222

Foreword

The ASEAN Seafarers Project was conceived at the first Planning Workshop of SEAPOL held on 23-24 November 1982 at Pattaya, Thailand. It was felt that a research programme examining issues relating to the Law of the Sea pertaining to the Southeast Asian region should pay some attention to seafarers who form a major group of sea-dependent peoples. The importance of seafarers is also seen from the fact that several of the countries in the region have been major sources of mariners manning international ocean-going vessels quite apart from their role in operating very large fleets of domestic ships serving both the passenger and cargo trade internally. The rapidly changing shipbuilding technology resulting in the need for much smaller crews to man ships as well as the state of health of the global economy have vitally affected the training, management and livelihood of seafarers. The project is intended to examine both the status of ASEAN seafarers and issues affecting them. This publication is the end product of a two-year research project generously funded by the International Development Research Centre (IDRC) and executed under the Institute of Southeast Asian Studies. The project formed one component of a larger SEAPOL Project and for this I would like to record my sincere thanks to Professor Kernial Sandhu, Director of !SEAS, Dr Phiphat Tangsubkul, Director of the SEAPOL Project, and Professors Edgar Gold and Douglas Johnson who provided me much stimulation and encouragement in the course of carrying out the project. Much encouragement was also given by Drs Jingjai Hanchanlash and Sitoo Mukerji, and Mr P.C. Munasinghe from the IDRC Regional Office in Singapore. I wish to record my thanks also to many individuals and agencies who have helped in so many ways to make the project a fascinating one. While it is not possible to list all those who have contributed towards the success of the project, I wish to thank at least the following who have helped me understand the circumstances surrounding seafarers in the ASEAN region and point the way for me. I wish to acknowledge the support and interest of the Division of Shipping, Ports and Inland Waterways, Economic and Social Commission for Asia and the Pacific (ESCAP), in particular Mr David L. Turner (Chief), Mr Edmond M.J. Corten, and Mr Lie Siao Sing. I benefited much from many hours of discussions with Mr Ronobir Roy, the Regional Adviser to Maritime Activities (now retired) of the Regional Office of the International Labour Organization, Bangkok. My

X

Foreword

discussions with Mr Rrian Laughton, Secretary of the International Transport Workers' Federation (ITF) in London provided insights into their point of view. Within the region, the views of and information provided by such personalities as Mr I .ow Ching Chuan, Secretary of the Singapore Organization of Seamen (SOS), and Mr Thomas Tay, Secretary of the Singapore Maritime Officers' Union (SMOU); and similarly in the Philippines, discussions with Messrs Cesar P. C:arandang (Chairman), Vicente]. Brillante and Raul A. Alcantara of FAME and C~pt. Jose E. Diaz of the Associated Marine Officers' and Seamen's Union of the Philippines, as well as officials of the Maritime Industry Authority (MARINA) have been most helpful. Visits were also made to many maritime training institutions in Malaysia, Indonesia and the Philippines and discussions with the respective principals helped in a thorough understanding of the situation with regards to the training of seafarers within the region. I wish to thank particularly Mr Leopolda T. Del Rosario of Magsaysay Lines, Captains R.F. Short (now retired) and R.D. Vardon of the Department of Nautical Studies (now Department of Business Administration), Sing-apore Polytechnic, for their time and valuable suggestions. Finally, I am most grateful for the support of each and every one of the rest'archers in the project and for their contributions. I owe much also to my joint project coordinator, Dr Mary R. Brooks, for her many roles in the project, including undertaking the arduous task of editing the papers for publication.

10 January 1989

Chia Lin Sien Project Coordinator

Acknowledgements

My deepest appreciation is expressed to the many people who have made this publication a reality. Firstly, this book and the embodied research would not have been possible without the generous support of the International Development Research Centre, Canada. Their funding of the larger SEAPOL Project and this component of it was very critical to its inception, development and success. In particular, I would like to acknowledge the assistance of Rachel des Rosiers of the Ottawa office and Sitoo Mukerji and P.C. Munasinghe of the Singapore office of IDRC. I would like to thank Chia Lin Sien for the guidance and leadership he showed in directing the study and planning the workshops and I am very sorry that he was unable to continue his association with the project through to its final publication. Without his efforts, the research would never have passed the stage of conception. I would also like to thank David Moreby for his participation in the Bangkok workshop; he performed his role of discussant and catalyst admirably and the success of the workshop was due largely to his guidance. Of course, the research could not have been undertaken without the assistance of the country researchers and the many hours they contributed to the papers they prepared. Encouragement by Kernial Sandhu, Director of the Institute of Southeast Asian Studies, and the support, financial and otherwise, by John Gratwick, then Director of IITOPS, paved the way for the completion of the manuscript. I would also like to thank the ISEAS Publications Unit for their support in helping me meld the efforts of many authors into this single volume. Secretarial services are always appreciated and the hours of typing on the final manuscript contributed by many, both in Canada and in Singapore, made this publication possible. Finally, I would like to thank my family, Mitch, Emma and Nathan for being so understanding and forgiving about the time I have committed to this project and my absences from home.

Mary R. Brooks

Introduction

The sea as "that wilderness of glass" -Edgar Allen Poe Southeast Asia, located on the Europe-Far East trade route, is one of the busiest shipping regions of the world and a major source of seafarers for the international shipping industry. In the context of the growing maritime aspirations of the region and the depressed state of world shipping, a study of the current situation facing seafarers in the region was funded by Canada's International Development Rt>sean:h Centre. This book reports on the findings of that study. The project involved field research and two workshops, the first of which established the base situation in each of the ASEAN countries and the second f'xamined the issues arising from common themes identified at the first workshop. The base situation is documented in the country reports, found in Part 2 of the book; the papers were presented at a workshop held in Singapore in December 1985. Arising from the discussion at this workshop were a number of themes, which were subsequently developed into a series of papers presented at the second workshop, held in Bangkok in May 1987. The theme papers from this workshop arc presented in Part I. The final paper in Part I, "The Seafarer in the ASEAN Region: Directions for the Future", summarizes the findings of the second workshop and underlines the need for an integrated and rational approach to the problems facing seafarers in ASEAN. In 1900 Joseph Conrad wrote, in Lord jim, that "There is nothing more enticing, disenchanting, and enslaving than the life at sea". The research presented here illustrates that this is still true today. ASEAN seafarers surveyed often went to sea for adventure and found the work to be hard and the adventure not what was anticipated. In these times of rapidly changing technology, port time is limited and seafarers may find themselves lucky if they are able to spend a few hours on shore. Their legal rights are not well protected and, when they finally break from the enslavement, there are often no shore-based jobs for them. The summary paper recommends a future programme of research that is needed in order to develop a regional labour policy to support ASEAN seafarers who work on "that wilderness of glass".

PART I

ISSUES

I

ASEAN Seafarers: An Overview Chia Lin Sien

Introduction

Seafaring, and more broadly shipping, forms an important element in the utilization of ocean space. Seafarers (together with fishermen, sea farmers and coastal settlers) constitute a set of sea-dependent people, and hence the study of seafarers, their recruitment, training, employment and living conditions, administration, and the legal environment constitute an important part of the total understanding of the oceans of the region. Seafarers face extended periods of time working on board ships. The length of time may stretch over a month at sea with few occasions to land. The fast turn-around time of efficient ship and port operations as well as the busy schedule of work during berthing and unberthing for both officer and rating also reduces the time available to come ashore. Thus, the "join the ship to see the world" slogan no longer applies to the modern seafarer. Life at sea requires considerable adjustment. Physical conditions of the sea depend very much on the weather prevailing in the vicinity of the ship as well as the configuration of the sea-bed, or that of the coastline if the ship is ncar shore. During the typhoon season in the northern part of the South China Sea and east of the northern Philippines, extreme conditions can pose serious threats to the safety of ships of any size. Thus, during periods affected by high winds and rough seas, conditions can be extremely stressful particularly when the crew are required to undertake additional work due to the stress imposed on the ship and its cargo. The problems can be compounded when the ship is not performing normally. For watchkeepers, navigating in confined and hazardous waters especially when there is heavy traffic within the sea lane can mean staying awake and alert for long hours and even days. Thus, working conditions can be highly stressful and physically taxing to the point of exhaustion. For ships operating on deep-sea routes, there will be long periods of little activity when the weather and sea conditions are calm. Feelings of isolation, boredom and lack of normal socialization can accumulate over time. The arrival of a storm or when the ship approaches coastal waters can mean a sudden change in the pace of work. Frustration has been reported to rank high on the list of reasons for seafarers leaving the sea (Moreby 1968, p. 120). This can come about because of unfulfilled expectations and unsatisfactory relationships between the master and crew, as well as among the crew themselves.

4

Chia Lin Sien

Whilt:' minor ailmmts on hoard ship can generally be treated and arc regarded as a normal part of life at sea, serious injuries and sickness can mean that seafarers may have to wait many days or weeks before proper medical attention can be given to them. In spite of improved ship design and modern equipment assisting navigation, marine transport is still highly hazardous and each year, shipping casualties claim twenty times as many lives as air transpqrt world-wide. The number of deaths of seafarers on Singapore registered ships during the period 1966-84 totalled an astounding 764, representing an average of about 40 deaths per year. Incidents of sinking of passenger ships and ferries within the region resulting in fatalities have been frequent. Recent developments involving reductions of manning scales can result in little opportunity for crew members to interact or even meet each other. The problem has been partly caused by the attempt to fit human beings to changes in technology ratht:'r than the other way around. Therefore, the special circumstances relating to the work and life of seafarers and those engaged in international merchant shipping require a different legal and organizational framt:'work, training, and managt:'ment; in most countries, the labour laws do not cover them. The International Labour Organization (ILO) has, therefore, since the early part of this century taken upon itself a special responsibility to safeguard the welfare of seafarers.

Traditional Seafarers Although the role and importance of traditional seafarers in the Southeast Asian region have been well appreciated, there has been little research as yet on the traditional seafarers both historically and under present day circumstances in the region. The arrival of Western shipping in the region gave opportunities to indigenous peoples (Malays as well as Indians and Chinese) to work on board Western-owned and -operated ships. Chinese-owned shipping manned by Chinese nt>w provided important, mainly feeder, services to complement the Western mainline and the more important feeder shipping services. In fact, in the early phase of development of the Straits Steamship Company, it acquired a number of small Chint>se-operatt>d shipping companies and retained a local crew. These Chinese-operated ships often hired European masters to command the Asian crews (see Treggonning 1967). However, the major part of the inter-island shipping of cargo and passengers was very much the business of indigenous shipping which until only recently remained unchanged. In Indonesia, perahu shipping using sail power was centred in Java, West Sumatra, and southern Sulawesi (earlier known as Celebes). Recent studies (see Hughes 1981) indicate that by now most of these ships have been motorized and that a high proportion of these vessels have come under Chinese control. Hughes reports that the training of seafarers still relies on on-the-job apprenticeship, and the level of skill appears to be low. This workshop, and the work leading up to it, is mainly concerned with seafarers serving modern international merchant shipping and will not deal with those engaged in traditional shipping, although the importance of the latter is

A SEAN Seafarers: An Overview

acknowledged. It is sufficient to note, however, that there has been considerable official neglect of traditional inter-island shipping within the countries of the Association of Southeast Asian Nations (ASEAN).

National Policy on the Development of a Seafaring Industry The promotion of seafarers among the ASEAN countries has been related to the development of merchant shipping in the region. Between 1970 and 1985, the combined fleets of the ASEAN countries (including Brunei Darussalam) increased by 3.7 times in terms of the number of vessels and by 7.2 times in terms of tonnage. Not only has the capacity increased, there has also been growth in the size of ships and the types of ships. ASEAN now owns significant tonnages of specialized and containerized vessels. Much of the growth has come about as a result of government support through implementing a variety of measures and establishing national shipping lines. The importance of promoting seafaring among nationals has been appreciated and has been regarded as part of the development of shipping in the countries concerned. Thus, Malaysia's policy to develop the country into a "maritime nation" includes the development of "skilled and professional manpower to operate all aspects of the industry" (Ramadas 1983, p. 53). Singapore's decision to open the shipping registry to foreign shipowners in 1968 was motivated by the desire to create more employment opportunities on Singapore-registered ships. Tax exemption for a Singapore-registered shipowner who employs 25 per cent or more of Singaporean seafarers is given in the form of a rebate of half the tonnage tax for the vessel concerned. Both Malaysia and Singapore exempt all national seafarers working on locally registered ships from paying income tax. In the case of the Philippines, one of the objectives of its umbrella shipping body, Maritime Industry Authority (MARINA), is "to generate new and more job opportunities" (MARINA 1983, p. 96). Indeed, the Philippines has become one of the largest suppliers of trained seafarers on foreign-owned (non-Filipino) ships. Repatriation of earnings by seafarers is an important source of foreign exchange and provide a degree of cushion against problems of a deteriorating economy in recent years. (See Philippines country report in Part 2). Indonesia's Ministry of Manpower has identified the shipping sector as one source of employment in the country. Attention has also been paid to employment on foreign shipping companies as a means of providing new job opportunities as well as to earn foreign exchange. A number of measures have been implemented to promote seafarer employment (see Indonesian country report in Part 2). However, in order to ensure that there are sufficient officers serving nationally registered ships, the government has banned officers from joining foreign shipping companies. As for Thailand, the current move to establish a marine academy is a positive response towards the need to train seafarers to man the increasing number of Thai-flag vessels.

6

ChiaLin Sim

Seafarers' Unions The best organized seafarers' unions are in the Philippines; there arc two, the Associated Marine Officers' Union and the Associated Seamen's Union of the Philippines. The two organizations are further grouped under the Associated Marine Officers' and Seamen's Union of the Philippines (AMOSUP). AMOSUP which has a membership of 15,000 forms a powerful pressure group in the shipping industry in the Philippines. It is affiliated to the International Transport Workers' Federation (ITF). The well managed organization gives strong support to its members as well as provides them with social. medical and other facilities and services. In Singapore prior to the 1960s there were many seafarers' unions representing various ethnic and dialect groups. Most of them were deregistered in the early 1960s. Currently, the seafarers' unions are perhaps as well organized as those in the Philippines. They are affiliated to the ITF and negotiate with shipowners on behalf of their members for better wages and conditions of work. The seafarers' organizations of the respective ASEAN countries represent the power of the seafarers as a group. Their viability as organizations can be measured by the successes in their negotiations with shipowners in getting collective agreements signed. The more successful and well funded unions (partly through contributions by shipowners with collective agreements) organize social, recreational, medical, insurance and welfare schemes for their members. Seafarer Training Among the ASEAN countries, the Philippines, Indonesia and Singapore have well-established training institutions for both ratings and officers. Malaysia's training institutions are relatively new and may be considered to be still in the process of further development. Thailand had only ad hoc arrangements for training until the establishment of the new marine academy currently being completed. There remains the need for all the ASEAN countries to upgrade facilities, equipment and the quality of staff. A major problem has been the inability of the seafaring industry to recruit candidates with good educational background. A common complaint has been that the recruits represent the bottom-of-the-barrel among school-leavers (or "drop-outs"). The system has therefore the additional task of being both a professional training institute and an educational institution. On the part of ship's masters and officers, due to improved shore-ship communications, many of their tasks are increasingly being undertaken from shore-based offices. The role of the chief officer has become one of "driver" rather than "master" of a ship (Short 1987). It is clear that there need to be fundamental changes in the system of training of ships' officers to meet the demands and changed roles on new ships. Only a few of the more established training institutions within the region arc capable of providing such training. C-aptain Short (1978, p. 208) admitted candidly that even in the case of Singapore, "much of the training [for deck officers] was designed to meet the needs of shipboard technology and manning of two decades ago".

ASEAN Seafarers: An Oven1iew

7

In order to share expensive trammg equipment, co-operation in trammg among the ASEAN countries should be considered, in particular, co-operation in the training of officers and advanced training, which appear to be the most feasible in the immediate future. Employment of Seafarers Wages, conditions of employment, and welfare of seafarers vary tremendously within each country and among the ASEAN states. The well-trained and experienced ASEAN seafarers employed on foreign-flagged vessels are able to command wages comparable to their European counterparts. In the case of the well-established national shipping lines and shipowners domiciled in the ASEAN countries, they pay ITF wages and enter into collective agreements (CAs) with seamen's and officers' unions. They also contribute some 5 per cent of crew wages into union welfare funds. This is done in part to avoid problems with labour unions in cases of ships serving ITF-controlled ports. In part, the national shipping lines act as standard bearers for the shipping community in setting employment standards for other shipowners. Often, no distinction is made between national and foreign crew in terms of wages and other benefits. There are no standard wage rates paid to seafarers in the ASEAN countries. Thus, shipping companies have tended to go to the source with the cheapest crew. This is possible in countries such as Singapore and Malaysia where it is not mandatory to hire national seafarers. A survey of employment prospects follows.

Indonesia Wages paid to seafarers working for state-owned shipping companies are lower than those paid by private shipping companies, although the former is preferred because of better benefits and greater job security. Employment prospects have been threatened by government policies on forced scrapping and the phasing out of log exports while the international employment situation continues to deteriorate. Malaysia While there is at present insufficient Malaysian seafarers to man locally registered ships, foreign seafarers serving on Malaysian ships can be asked to leave to give place to a local seafarer. In practice, there is no restriction on the hiring of foreign crew and local shipowners have preferred to hire cheaper foreign crew from the neighbouring countries. Employment prospects for officers domestically remain good, although there is still a strong preference for shore jobs on the part of experienced qualified men. Philippines There are more than 200,000 trained Filipino seafarers. A total of more than 50,000 Filipino seafarers are employed on foreign-flag ships although the number has declined from over 64,000 in 1982 to about 51,000 in 1985. The decline in the number of seafarers employed o,verseas has to be attributed to the depressed

8

Chia LinSim

shipping market and increased competition from non-traditional sources of even cheaper seafarers. The problem of unemployed seafarers is compounded by the continued production of seafarers as a result of the proliferation of training centres in the country. An additional problem has been the over-regulation of the seafaring industry as a result of the multi-layered regulatory machinery.

Singapore The number of registered ratings in Singapore has declined from more than 9,000 in 1973 to about 2,300 in 1984, while the proportion of those employed was 74 per cent in 1973, compared with only 53 per cent in 1984. The decline has been partially due to the implementation of cabotage rules in the neighbouring countries. It is significant that the proportion of Singaporean seamen employed on non-Singa.porean ships has declined from about 22 per cent in 1978 to less than lO per cent in 1984. This may in part be due to the tendency of foreign shipowners to hire cheaper crew rather than the more expensive Singaporean seamen. Thailand Of the total number of seafarers employed on Thai-registered foreign-going ships, 45 per cent were non-Thai seafarers. Thai seafarers are the least regulated among the ASEAN states. It appears that foreign companies, such as the oil companies, pay higher wages than local shipping lines. Large differentials in wages between foreign and local seafarers are allowed to prevail on vessels employed in deep-sea trades. It would appear from the above that the employment prospects for seafarers differ considerably among the ASEAN countries. Similarly, hiring practices among the ASEAN countries also differ widely. Although many shipowners hire their crew directly, manning agencies have sprung up where a market for their services exists. For example, in Singapore the roster system administered by the National Maritime Board (NMB) was abolished; although most shipping firms maintain their own core of seafarers and hire directly when necessary, there has emerged unlicensed brokers and middlemen who will undertake to find employment for seafarers in return for a fee. The best developed manning agencies are those in the Philippines where there are some 200 licensed manning agencies mainly from the private sector. These agencies have formed themselves into associations, the largest and best organized of which are the Filipino Association of Mariners' Employment (FAME) and the Philippine Association of Manning Agencies and Shipmanagers Inc. (PAMAS). The agents also practice the "rotation of assignment" system by which employment opportunities are spread among those on their register. This arrangement is regarded as being fair and has been sanctioned by the labour unwns.

A SEAN Seafarers: An Oven•iew

9

Problems Confronting ASEAN Seafarers

As a result of rapidly changing conditions, new problems confront seafarers in the region, while existing unresolved problems remain. For many reasons, the less well-off countries among the ASEAN member states are finding it difficult to find solutions to the problems. As a group, however, ASEAN may be able to cope with some of the problems through co-operation. Reduced Manning The effect of technological change and recession in shipping has been to reduce manning scales on modern ships. More by ( 1987, p. 226) summarized the effects of smaller crews as follows: 1.

2. 3.

4.

5.

Additional work has to be done by the smaller crew so that the issue of fatigue has to be addressed; Different work has to be done by individual members, so that greater role flexibility is required of modern seafarers; In smaller crews, the social distinctions between officers and ratings are no longer tenable and are starting to disappear, for example, in common messing; In general, personal safety is improving because there are fewer people aboard who can get hurt and there is also less human involvement in technical tasks; and While they are concerned about the issue of fatigue, most seafarers surveyed express greater job satisfaction arising from a smaller and more flexible crew.

Management of Seafarers Moreby (1987) noted that seafarers are increasingly being alienated from shipowners, the result of which is that they no longer feel committed. The emergence of flags of convenience from the 1920s and the growth of ship management firms have meant that shipowner, cargo, the vessel, and the crew are no longer directly linked. Morale and commitment to the safety of cargo and ship have, therefore, been adversely affected. In the ASEAN countries, it is not uncommon to find ships manned by ethnically mixed crews. Shipowners are also likely to be different ethnically and by nationality from the crew. Cultural and religious differences manifested in terms of dietary habits and personal preferences may introduce conflicts among members of the crew and between master and crew. Resentment has been known to arise from large differentials in wages between European officers and Asian ratings and junior officers. Thus, effective management of such ships can be difficult. Often, preferences have been stated for crews of the same nationality and ethnic group. An additional factor has been the use of different languages by mixed crews. The preference of most countries is to adopt the English language for communic.ation. Thus, the language of instruction for the Malaysian Maritime Academy is English. Filipino crews also enjoy the advantage of being able to speak English when being considered for employment on foreign-owned vessels.

10

Chia Lin Sien

An ASEAN Response Approaches to the administration of seafarers among the ASEAN countries have been divergent. Singdpore has preferred to closely monitor the certification, training and registration of seafarers while giving shipowners maximum latitude in the hiring of their crew. The emphasis has been towards achieving high standards in the training of seafarers, with the national shipping line, Neptune Orient Lines, setting the pace for other employers. Substantial resources have gone into building up the training institutions. In the case of the Philippines and Indonesia, the administrative structure in the country is more complex and complaints have been voiced against the overregulation of seafarers in the Philippines. The power of the seafarers' unions in the Philippines has acted as a balance to prevent excessive abuse of crew and to safeguard their welfare. In general, much less appears to have been done for seafarers in Indonesia. As for Malaysia and Thailand, appropriate administrative structures are still in the process of being developed. The move towards setting up umbrella organizations to promote the shipping industry as a whole is a healthy one. In the area of seafarer training, it is clear that rationalization in the recruitment and supply of seafarers is needed in the case of the Philippines, which is faced with severe unemployment problems. This problem is less urgent in the other ASEAN states although early attention to it may mean avoiding future problems and reducing adverse impacts at an early stage. Accusations of poorly trained seafarers have often been heard. Improving and maintaining high standards should be a matter for continued attention. An independent system of assessment and accreditation for the region may be a useful way of ensuring high standards of training. Regional co-operation in the training of officers and advanced training in order to maximize the use of expensive training equipment and facilitities should be seriously considered. While practical problems in cooperative efforts need to be resolved, ASEAN could usefully promote the idea of eventually establishing an ASEAN register for seafarers. Uniform high standards of training appears to be a prerequisite for such a scheme. Maritime traditions should be promoted among the ASEAN countries which are, by natural endowment, maritime nations. Maritime traditions seem to be most highly developed in the Philippines which, like Indonesia, is an archipelagic state. There is also a strong maritime tradition in Indonesia which however, needs to be modernized and further developed. It is regrettable that the tradition of the sailing ship, the perahu, has been allowed to degenerate. Conscious effort could be made to draw traditional seafaring communities to towards their integration with modern shipping practices.

A SEAN Seafarers: An O,•en•iew

11

REFERENCES Chia Lin Sien. "Regional shipping: trends and responses to challenges". Paper presented at the International Seminar on Transportation Engineering and Management, Singapore, 23-25 Aprill987. Chartered Institute of Transport (Singapore Branch), and Nanyang Technological Institute, Singapore, 1987. Chia Lin Sien and Keith Trace. "Trade and investment in shipping services". In Pacific Trade in Seroices, edited by L.V. Castle and C. Findlay, pp. 124-46. Australia: Allen & Unwin, 1988. Hughes, David E., "The Indonesian Cargo Sailing Vessels and the Problem of Technology Choice for Sea Transport in a Developing Country: A Study of the Consequences of Perahu Motorisation Policy in the Context of the Economic Regulation of Inter-Island Shipping". Ph.D. thesis, University of Wales, Cardiff, 1981. International Labour Organization. Report of the fLO Inter-regional Seminar on Maritime Training, Singapore, 23 April- 6 May 1970. Geneva: ILO, 1970. Leinbach, Thomas R. and Chia Lin Sien. Southeast Asian Transport: Issues in Development, pp. 97-132. Kuala Lumpur: Oxford University Press, 1989. MARINA. Philippine Maritime Industry 1982-1983, p. 96, Philippines, 1983. Moreby, D. H. Personnel Management in Merchant Ships. London: Pergamon Press, 1968. ----·"Issues concerning the manning of modern merchant ships". Paper presented at the Imernational Seminar on Transportation Engineering and Managemem, SingaJXlre, 23-25 April 1987. Chartered Institute of Transport (Singapore Branch), and Nanyang Technological Institute (Singapore), 1987. Ramadas, K., "National planning and shipping policy". In Report and Technical Papers of the Country-level Workshop on Shipping Statistics, held in A SF-AN Capitals, 13 july- II August 1983, pp. 51-58. Bangkok: UNESCAP, 1983. Short, R.F. "Office, operator or driver - training the future shipmaster". Paper presented at the Imernational Seminar on Transportation Engineering and Management, Singapore, 23-25 April 1987. Chartered Institute of Transport (Singapore Branch), and Nanyang Technological Institute (Singapore), 1987. Tregonning, K. G., Home Port Singapore - A History of Straits Steamship Company Limited, 1890-1965. Singapore: Oxford University Press, 1967.

2

Organization and Management of Seafaring in the ASEAN Region A. Francisco J. Mier and Ong Tiong Hui

Introduction

To facilitate discussions on the organization and management of seafaring industries in the ASEAN region, a three-element industry model will be used. This model represents the overall structure of the seafaring industry (SI). It shows the major components of the industry and their relationship with one another. As in all frameworks, the SI Model tends to over-simplify the reality behind the SI. Nont>tht>lt>ss, it remains useful as a reference point, or, more appropriately, a point of organization for all the features and elements which differentiate individual industries from, or relate them to, one another. As presented diagrammatically in Exhibit 2.1, the SI Model consists of the following elements: a) the Manning Sector, b) the Training Sector, and c) the Regulatory Sector. Strictly speaking, only the first two sectors can be properly EXHIBIT 2.1 Tht> SI Model REGULATORY SECTOR Government Agencies Concerned Some Private Organizations

MANNING SECTOR

TRAINING SECTOR

Manning Agencies Seafarers' Unions Employers' Associations

Merchant Marine Academies (Government/Private) Other Institutions

OrKanimtion and Management of SeafarinK

13

called industry members since it is from these that the industry outputs are produced. The Regulatory Sector has been added in view of the direct and often extensive influence it exercises over the first two sectors. In describing the elements, it may help to understand that the SI Model is a "market-oriented" modeL Despite the strong influence of government on certain Sis (for example, the Philippine SI), it is largely private enterprise that works to produce the expected industry outputs which consist of merchant marine services delivered as well as the corresponding income earned from these services. The Manning Sector relates to the demand side of the SI and is concerned with the employment of seafarers. It therefore represents the market aspect of the SI and is made up of manning agencies, seamen's unions and all entities concerned with the recruitment, deployment and management of seafarers. The supply side of the SJ is represented by the Training Sector under which production of qualified seafarers is undertaken and which is made up of training institutions which could be private or government-run. The Regulatory Sector refers to the government bodies involved in the overall supervision and control of the SI. Although they do not participate directly in the demand-supply transactions of the two other sectors, the government agencies, through policy and regulatory intervention, create the environment within which these transaqions take place. In some cases, the government's role covers what the private sector is expected to handle in relatively more mature Sis. Certain private groups can also be classified under the Regulatory Sector. These are inter-organizational or inter-sectoral associations whose role in the industry is to facilitate the business transactions of its members, provide a means for policing the ranks of industry members and for airing and possible resolution of issues or conflicts among these members. Exhibits 2.2 through 2.6 present the SI characteristics for each of the ASEAN countries studied.

Characteristics of the ASEAN Seafaring Industries

Commonalities GOVERNMENT REGULATION

Government control is present in all the ASEAN Sis. What varies is the degree of control and this seems inversely proportional to the extent that the private sector is allowed and encouraged to conduct its business. In each ASEAN state, a set of government agencies lays down the policies affecting the different areas of the SI - education/training, testing and certification of competence, screening and recruitment, setting levels of compensation for seamen and officers, benefits/welfare, disciplinary action, and so forth. COMPETENCE TESTS AND LICENSING

In all countries, the government is responsible for the conduct of tests and the issuance of competency certificates. In Thailand, it is the Harbour Department of the Ministry of Communications; in Malaysia, the Ministry of Transport; in

14

A. Francisco]. Mier and Ong Tiong Hui

EXHIBIT2.2 Organizational Structure: Malaysian Seafaring Industry REGULATORY SECTOR

* Ministry of Transport -

Maritime Division • certification of competency • licensure examinations - Public Service Department • training seafarers - Central Mercantile Marine Fund (CMMF) • welfare aspects

MANNING SECTOR

TRAINING SECTOR

* Shipping companies

* Government Institutions

direct recruitment within regulations set by the Marine Department of the Ministry of Transport. Manning Agencies of foreign principals. - So far only 2 licensed agencies with little or no effect on the employment pattern. Malaysian Shipowners Association (MASA). - influential in setting manpower policies. Unions (no nation-wide union) One local association: Penang Seamen's Union which is consulted by the Marine Department on the availability of Malaysian crew.

-

-

*

*

*

*

Academy Laut Malaysia Ungku Omar Polytechnic, lpoh No mention of private training centres/schools.

OTHERS: IKMAL- Malaysian Maritime Institute (acts as a consultative body).

15

Organization and Management of Seafaring

EXHIBIT2.3 Organizational Structure: Indonesian Seafaring Industry REGULATORY SECTOR

*

* * *

Ministry of Communications - Directorate General for Sea Communications (ScaCom) • sets competency standards • policies on training • policies on employment State Examination Board (PUN) • licensure examinations Shipping Court of Inquiry (Mahkamah Pelarayan) • adjudication on mauers of discipline or miscompensation Ministry of Tourism - Directorate General of Post and Telecommunications • training and certification of Radio Officers

MANNING SECTOR

TRAINING SECTOR

* Government

*

- through the Harbour Masters (under SeaCom) * Union -Indonesian Seafarers Union (ISU); all recruitment in foreign ships channelled through ISU. * Foreign Shipowners and Employers Association (FSEA) - sets standard wages in agreement with ISU.

*

Government institutions - Indonesian Naval Academy - Pusdiklat Laut • Marine Education & Training Institute • AlP • BPLPD Private institutions - 26 schools.

16

A. Francisco]. M ier and Ong Tiong Hui

EXHIBIT2.4 Organizational Structure: Philippine Seafaring Industry

REGULATORY SECTOR

* Ministry of Education, Culture and Sports * Ministry of Labour and Employment * * * *

- Philippine Overseas Employment Administration Philippine Coast Guard Professional Regulation Committee Maritime Industry Authority Multi-Agency Organizations - IATCOME - Maritime Training Council

I

MISC. GROUPS

\

* Chamber of Maritime Industries of the Philippines * Seamen's Wives Association * Apostleship of the Sea

I

MANNING SECTOR

* Manning Agencies * Agents' Associations -

FAME, PAMAS

* Seamen's Unions -

\

AMOSUP, CSP

TRAINING SECTOR

* *

Maritime Schools Training Centres * Organizations - PAMI, FAME

17

Organiwtion and Management of Seafaring

EXHIBIT2.5 Organizational Structure: Singaporean Seafaring Industry

REGULATORY SECTOR

* Ministry of Communications and Information -

-

-

Marine Department • certification of officers • manning controls • examinations for officers National Maritime Board • training of ratings • employment and welfare of ratings Telecommunications Authority of Singapore • certification of radio officers

/

TRAINING SECTOR

MANNING SECTOR

*

Ministry of Communications and Information - Mercantile Marine Office (for officers) - National Maritime Board (for ratings) * Unions - Seamen's Org-anization of Singapore (SOS) - Singapore Maritime Officers' Union (SMOU) * Employers' Association - Seafarer Employers' Federation * Shipping Companies

* Government Institutions - Singapore Polytechnic Dept. of Nautical Science * Dept. of Marine Engineering - TS Singapore - Republic of Singapore Navy

*

18

A. Francisco]. Mier and Ong Tiong Hui

EXHIBIT 2.6 Organizational Structure: Thai Seafaring Industry

REGULATORY SECTOR

* Ministry of Communications -

*

Harbour Department • training standards • seafarers' examinations • competency certificates Ministry of Interior - Labour Department • checks qualifications of all types of labourers

I

\

MANNING SECTOR

* No manning agency separate

* *

from shipowners (direct crew hiring by shipowner in accordance with government regulations). No seamen's or officers' unions which may influence recruitment practice. Shipowners' associations - Thai Shipowners Assn. - Bangkok Shipowners and Agents Association

TRAINING SECTOR

* Government Institutions Harbour Department Merchant Marine Training Center No private maritime schools.

-

*

Indonesia, the State Examination Board; in the Philippines, the Professional Regulation Commission; and in Singapore, the Marine Department of the Ministry of Communications and Information. Since the tests given are based generally on international maritime standards (for example, there were proposed changes to Thai certifications based on the International Maritime Organization [IMO] Standards of Training Certification and Watchkeeping [STCW] Convention, 1978) which are respected by all the nations concerned, the differences in this area are minimal.

Organiwtion and Management of Seafaring

19

TRAINING INSTITUTIONS

Governments maintain their own academies or training centres which, in most cases, meet the standards for industry education. In Thailand there is the Merchant Marine Training Center; in Indonesia, the Naval Academy and the Pusdiklat Laut with its four marine schools; in Malaysia, the Academy Laut Malaysia; in the Philippines, the Philippine Merchant Marine Academy and the National Maritime Polytechnic; and in Singapore, the Singapore Polytechnic and the Training Ship, TS Singapore. Differences GOVERNMENT REGULATION

One aspect of variation is in the number of agencies involved in regulation. The systems in Thailand, Malaysia and Singapore are more integrated than those in Indonesia and the Philippines; most of the policy-making and control in the former nations are the responsibility of a single ministry while in the latter, several agencies handle the various aspects of regulation. The Philippine structure is observed to be prone to bureaucratic red tape and inefficiency. But this could merely be in response to the relatively large number of seafarers and the faster development of the SI in this country. The same could be said about Indonesia. The Thai and Malaysian systems may seem basic but this may be more practical for developing Sis. It should be noted that these nations currently have insufficient numbers of trained maritime manpower. Another aspect of variation is in the extent of government involvement in the implementation of policies. In training, for instance, it is noted that all member states have government-run maritime academies/centres, but Indonesia and the Philippines also encourage the private sector to contribute in the training of seamen by providing schools and upgrading centres. Thailand, Singapore and Malaysia, at present, have opted to have a centralized training system under government jurisdiction. TRAINING INSTITUTIONS

Apart from government-run institutions, Indonesia and the Philippines have privately-owned schools/centres - Indonesia, with 26 registered private schools; the Philippines with 40 schools and 21 training centres. (See Annex A to the Philippine paper in Part 2). Overseas training is allowed in the case of Malaysia (for navigating officers) and Thailand (for deck officers), but with the establishment of local education centres, ovf'rseas training will be minimized. In the Philippines and Indonesia, training abroad is not promoted because of the existing facilities in these countries. Filipino officers, however, may study abroad, usually under military exchange programmes. Government agencies formulating training policies also vary from one country to another. In Thailand, education/training policies are formulated by the Harbour Department of the Ministry of C.ommunications. In Malaysia, the Public Service Department is responsible for this; in Indonesia, the Ministry of Communications as well as the Ministry of Tourism (for radio officers only); in

20

A. Francisco]. Mier and Ong Tiong Hui

the Philippines, the Ministry of Education, Culture and Sports with contributions from the Coast Guard and the Professional Regulation Commission. In Singapore, the Ministry of Communication and Information and the Telecommunications Authority are tasked with these matters. W AGF. POI .JCIF.S

In the Philippines, the wage standards imposed by the Philippine Overseas Employment Administration are more or less ILO-based. There is no legislation on wage levels in Malaysia but the Central Mercantile Marine Fund has proposed guidelines on wages and other benefits. The wage rates set by the Indonesian Seafarers Union, in agreement with the Foreign Shipowners and Employers Association, are, like those in the Philippines, more or less ILO-based. Singapore, on the other hand, provides guidelines on wages paid to registered seamen through the National Maritime Board but actual bargaining is done between the unions and the shipowners through collective agreements. Singapore rates are midway between ILO and ITF recommended rates. TAX MEASURES AFFECTING SEAFARERS

Thailand has no tax provisions specific to seafarers; income tax is basically at the same level as for land-based jobs. Indonesian seafarers only enjoy exemption from the fiscal (departure) tax. Malaysia has a conditional tax privilege for its seamen: those who stay at sea for six months or more in a year get certain tax exemptions. Filipino seafarers are given the privilege of paying only lO per cent of the income tax rate applicable to land-based workers, while tax incentives in Singapore are directed towards both the Sf'afarer and the shipowner- the latter is given a 50 per cent reduction on tonnage tax for hiring local seamen, while the former is exempted from paying any income tax. UNIONS

Thailand has no seamen's or officers' unions whatsoever while Malaysia has no nation-wide seamen's union. There is one local union, the Seamen's Association of Penang, which is consulted by employers regarding. the availability of Malaysian crew. Indonesia has one government-recognized union, the Indonesian Seafarers Union, but there is no officers' union except for the Alumni Corps of the Merchant Marine Academy. Singapore has two state-recognized unions, the Singapore Maritime Officers' Union (SMOU) and the Singapore Organization of Seamen (SOS). The Philippines has a number of seamen's unions and an officers' association. MANNI:'IIG AGENTS/EMPLOYERS' ASSOCIATIONS

Seafarer recruitment in Singapore is handled by the Marine Department and the National Maritime Board which co-ordinate with the unions, SOS and SMOU; hence, manning agencies play no role. Shipowners deal directly with the unions in forging collective agreements; so far, there are no active shipowners' associations. Malaysia has two licensed manning agencies and one shipowners' association, the Malaysian Shipowners Association. The Bangkok Shipowners

Organiwtion and Management of Seafaring

21

and Agents Association and the Thai Shipowners Association comprise the two Thai employers' associations while Indonesia has its Foreign Shipowners and Employers Association. The Philippines, on the other hand, has a number of these organizations, the most prominent of which is the Filipino Association for Mariners' Employment. Noted Industry Problems

Contraction of the World Market for Seafarers The contraction of the global seafarers' market resulting from the recession of the early 1980s was felt more in Indonesia and the Philippines since these countries currently have surplus maritime manpower. This contraction has affected the other ASEAN countries as well but not as dramatically. The dependence of the Philippine economy on the repatriated earnings of Filipino seafarers makes the paucity of employment opportunities more acutely felt. Competition with other Seafaring Nations Indonesia and the Philippines are most concerned about the competitive trends affecting the region, especially the problems posed by other countries, such as Sri Lanka, Korea and the People's Republic of China·, charging lower pay rates for merchant marine services. Onerous Certification Requirements The Filipinos complain of the bureaucratic red tape encountered in the registration of seafarers which stems from the number of agencies involved. Indonesia, to a certain extent, also experiences these problems, having several entities handling certification and registration of its seafarers. Insufficient Number of Trained Seafarers Malaysia and, to a certain extent, Thailand experience the need for more trained seafarers. The reason for the dearth of local seafarers is the competition posed by equally or more attractive land-based jobs. Inadequate Training Facilities Except perhaps for Singapore, all the ASEAN states are confronted with the need for better training facilities vis-a-vis subjects of relatively higher technological sophistication, for example, computer guidance, satellite communications, and so forth. On regular subjects/courses, Thailand has indicated the need for more support from its government. Forced Scrapping of Vessels Indonesia has indicated the potential unemployment problem created by a government policy forcing the scrapping of older vessels. Proliferation of Training Institutions and Manning Agencies These problems are encountered in the Philippine seafaring industry because of

22

A. Francisco]. Mier and Ong Tinng Hui

the previously rapid expansion of demand for Filipino seafarers. As the demand tapered off, there was a lag in the reaction of the training and manning sectors so that supply of seafarers tended to outstrip demand. To a certain degree, Indonesia also feels the effects of a declining demand for, coupled with a continuing production of, seafarer graduates even without the proliferation of training institutions. Concluding Notes The role of the government m the organization and management of ASEAN seafarers is undoubtedly extensive and, in some cases, all-encompassing. However, the perception as to the value of its influence over the seafaring industry's affairs varies from country to country. In the Philippines, for instance, there is the feeling that government intervention should be lessenf'd, with more leeway given to private sector initiatives and action, while in Singapore and Malaysia, there seems to be little reaction to the extent of government intervention in the various aspects of their respective seafaring industries. It is possible that cultural and historical factors contribute to these differences in perception and response. On the other hand, the degree of actual government intervention could indicate the place of the seafaring industry in these governments' national development priorities. To some extent, and assuming rational management approaches are brought to bear upon the ASEAN seafaring industries, these priorities would reflect each member's resources and areas of competence, as well as its level of economic development at this particular time in history.

3

Training of Seafarers in the ASEAN Region Chia Lin Sien

Introduction

The Asian region has traditionally been the supplier of seafarers to ships owned by developed countries and those registered under flags of convenience. Within the five ASEAN countries under consideration, this applies to the Philippines and to a lesser extent to Indonesia and Singapore. Even in the earlier colonial periods, Malay and Chinese seafarers had been used by British, Dutch, and German vessels plying the Far East-European routes and coastal trades within the region. Training of seafarers in those early days was very much a matter of learning by apprenticeship, with certificates of competency issued by the metropolitan states. At a later stage, examinations for obtaining certificates of competency were organized at the major port cities in the region. There were also Chinese- and Indian-owned ships crewed by their respective ethnic seafarers which plied the waters carrying cargo and passengers within the Asian region. Chinese-owned ships in Singapore and Malaysia quite often hired European masters to command vessels that operated in region:ctl waters, serving as feeders to the European trunk route operators that called un the main regional ports. Information on their training and employment is, however, scanty. The indigenous inter-island shipping that serves the local trades as well as provides feedering services for European shipping is crewed exclusively by Malay and Filipino seafarers in the respective geographical areas. The training of these seafarers is based very much on traditional local practices and this paper will not deal with them. Rather, the paper will focus on the training of seafarers serving modern European-type shipping and therefore forms very much a part of the international system of supplying seafarers to meet the demands of modern merchant shipping. As mentioned elsewhere, consideration will be given only to five of the ASEAN countries, excluding Brunei Darussalam. Importance of Training Seafarers With the withdrawal of the colonial administrations from the region from the mid-l940s and the expansion of national merchant shipping in the ASEAN countries, it has become important to train a pool of seafarers to serve on

24

Chia Lin Sien

nationally-owned vessels. The region has developed very rapidly not only in terms of the total capacity of the national fleets but also in terms of the range of ship types owned, including modern containerships, oil tankers, bulkers and other specialized vessels. The ASEAN governments have, in some cases, attempted to induce shipowners to switch from hiring non-nationals to crew these ships to using local seafarers. The heavy investments in the very expensive ships have demanded that officers are trained to the highest level to ensure the safety of these ships. Countries within the ASEAN region also see themselves as maritime nations in their own right. The capacity for training seafarers at all levels through the establishment of appropriate training institutions has become a basic requirement and the latest ASEAN state to implement this is Thailand which, until recently, did not have a maritime training institution within the country. For countries such as the Philippines which sees employment opportunities for seafarers on foreign ships, it is mandatory that these seafarers be properly qualified and certificated and that international standards are adopted in the training institutes that produce the personnel. In recent years, competition from other sources of seafarers have highlighted the need for not only marketing the services of these seafarers on the price factor but also emphasizing the quality factor in attracting potential employers for their seafarers. In recent decades, there has been rapid development of new technology in designing ships, led by developed countries, in response to a number of factors including (I) the increasing cost of employing ships' crew; (2) the push for larger vessels to take advantage of economies of scale; and (3) the drive to improve efficiency and greater safety through the incorporation of new sophisticated equipment. This has led to increased automation requiring fewer seafarers to man the ships. Indeed, the whole concept of the function of crews on modern vessels has undergone a radical change arising from these new generations of vessels. The higher vessel speeds and the faster tum-around times of ships in port and modern telecommunications have also meant that the role of the ship's captain and the job specifications of individual members of the crew have changed. Thus, the nature of the training of seafarers has also altered accordingly. The point is that once the ASEAN countries embark on the business of training, it becomes important to provide training at the highest level in meeting the needs of modern ships even though lower levels of training will continue to be acceptable for regional and domestic shipping for a long time to come.

Seafarers' Training in ASEAN For historical reasons, the training institutions for seafarers in the ASEAN region have evolved differently. Strong ties with former colonial metropolitan states have been a dominant influence. Thus, in the cases of the Philippines and Indonesia, their main maritime training institutions have, respectively, their roots in American and Dutch traditions. For Singapore and Malaysia, which have maintained strong links with British shipping custom, they have modelled their

Training of Seafarers

25

institutes largely after the British system. The international organizations such as the International Maritime Organization (IMO) have been directly responsible for shaping the model followed by Thailand. Thus, differences in the systems of certification, syllabi in the training courses, requirements for sea service, and other characteristics exist within ASEAN, although broad similarities remain due to the international nature of merchant shipping. Detailed information on the organizational and legal framework and the development of seafarers' training institutions for each of the five ASEAN countries is presented in Part 2 of this book. It is generally accepted among the ASEAN member states that a well established system of training seafarers is an essential part of the development of the industry. By and large, the region as a whole has developed such a system.

Basic Requirements The basic requirements for a system of training seafarers in the region includes an appropriate organizational and legal framework; proper certification of competency for officers and ratings; an established system of examinations; adequate physical infrastructure, trdining equipment and facilities; and a body of trained instructors. ORGANIZATIONAL AND I .F.GAL FRAMEWORK

It is essential to have the required regulations governing the examination, certification and professional and practical training of seafarers. An appropriate marine training institution is also needed to undertake training and the conduct of examinations. Apart from the premises, adequate staffing and equipment are essential to provide the necessary range of courses and facilities. Where there is no training ship available for sea service it is then necessary to maintain an arrangement whereby seafarers are employed on board merchant ships to acquire experience at sea as part fulfilment of the requirement to acquire the next level of certification. It is, therefore, essential that a close relationship exists between employers (shipowners and operators) and the training institute. Ideally, seafarers should receive on-the-job training from the ship's master and officers, and self-learning instructional materials be made available for them to continue their training while serving on board the ship. In practice, the latter is seldom achieved and seafarers merely obtain practical experience from the tasks performed on board the ship. In many cases, shipowners will sponsor trainees, particularly pre-sea trainees who will be put on board their ships as cadets. The better established shipping companies will even take on the responsibility of upgrading their crew so that in time their ships are manned by a core of ratings and officers who are employed on a more or less permanent basis. CERTIHCATION

It is important to establish a national system of certification for various grades of

ratings, navigators and engineers, with specifications of the curricula and the required period of service on board ship. This function should be in the hands of

26

Chia Lin Sien

an independent, normally a government, agency to ensure that the standards are maintained. In the case of Singapore, it is the Marine Department under the Ministry of Communications and Information that has been given this function. FI:-IANCIAL SUPPORT

The setting up of trammg institutions requires very substantial long-term investment in building, equipment and wages for a full complement of staff plus maintenance cost. For the developing countries of ASEAN such investments need careful consideration of the potential pay-offs in terms of meeting manpower needs. In terms of the physical set-up of the institution, there are two types of establishments: those quartered separately on a coastal piece of land operating independently as a training school and those located in an urban area as part of a larger institution or shipping line. Examples of the former are the Marine Academies in Malacca, Manila, and Jakarta. The latter category includes the Departments of Marine Engineering and Nautical Studies in the Singapore Polytechnic and a number of privately operated training institutions in Manila. In recent decades, an additional consideration has been the availability of foreign exchange required to pay for and maintain the expensive training equipment which has to be imported. Thus, donations from foreign aid agencies have been important in acquiring such equipment (and, indeed, the setting up of the training institutions). ADEQUATE QUALIFIED STAFF

During the initial period of establishing a trammg institution, an important factor in determining the success of the training programme is whether a sufficient number of qualified staff can be recruited to undertake the range of teaching functions. In many cases, as in Malaysia and Singapore, there has not been a problem in recruiting experienced qualified instructors from countries with longer established maritime traditions. It is important then to ensure that the expatriate staff is sufficiently motivated to provide dedicated service and that a system of training for local instructors is implemented which in time will provide a core of well qualified and committed staff. The problem has. in some cases been the recruitment of good local staff to fill the various positions in the institutions. Categories of Trainees Various categories of seafarers have different training requirements and the courses are often conducted under separate departments or even separate organizations. The major training institutions in the ASEAN region have provisiom for undertaking training [or the full range of certificates. For example, the Singapore Polytechnic conducts courses for ships' officers only while ratings are trained by the Singapore Maritime Board. NAVIGATI:-IG OFFICERS

Navigating, engineering and radio officers are required to pass a professional examination which covers appropriate theoretical and practical subjects and includes all of the knowledge and skills required for these qualifications.

Training uf Seafarers

27

Training is aimed at inculcating a sense of responsibility for the operation of a ship. This requires formal training, practical experience, maturity, and mental and physical qualities necessary for the tasks given to them. For navigating officers, the subjects include navigation, seamanship, ship-handling, cargohandling, the use of modern aids to navigation, and various other subjects related to the management and operation of a ship. Masters and navigating officers certificates are categorized according to the waters in which they are authorized to command vessels as well as according to the size of the vessel. Thus, several catEgories of certificates, for example, foreigngoing, home and local trades, are given. The certificates of navigating officers are further grouped according to seniority within each category. Generally, thf' rf'quirf'mf'nt of most countries for a certificate as the lowest grade mate of foreign-going vessels is at least three years of practical experience at sea. For a certificate as a higher grade mate up to master, additional sea service of at least one year is required in each successive grade, while holding the certificate for that grade. In computing sea time required for certification, an allowance is made for time spent in approved training schemes. A certain amount of credit may also be given for naval and other special types of sea or professional experience. In some cases, officers are required to possess certificates as a qualified radar observer, and sometimes a certificate in first-aid as well. Such qualifications can be obtained either as part of a comprehensive training course for officer candidates, or by undergoing special short courses conducted by an approved institution. EI\"GINE OFFICERS

Certificates of competency for engine officers are classified according to the horsepower and type (steam or motor) of ships' main propulsion engines they operate, and are graded by sEniority from third or sEcond engineer up to chief engineer. Further differentiation is made according to the trade routes, that is, foreign-going, home or local trades. Certain countries also issue certificates to special catEgories of ship's engineer known as electrical officers, while those responsible for engines of small sea-going merchant vessels are issued certificates with such titles as motorman, marine machinist and engine driver. There are generally parallel requirements between engineers and navigating officers with regard to age, health, professional and practical experience at sf'a and level of proficiency. Candidates for the lowest grade of an engineer's certificate must have about two years' sea service in a ship's engine room or equivalent service before they can qualify for a certificate, although as much as thrf'f' or four years are necessary in several countries. Remission of some sea service is usually permitted for time spent in approved maritime training. For higher grade certificates, at least one year's sea service in each grad!" is prt"snibed for a raise in grade up to the highest certificate issued. The professional examination covers both the theoretical and practical aspects of the operation, maintEnance and repair of steam and diesel engines; boilers; auxiliary machinery; electrical propulsion machinery; equipment and systems;

28

Chia Lin Sien

and a thorough knowledge of the particular type of propulsion plant for which the examinee seeks a certificate of competency. The examinations for electrical officers are principally concerned with electrical generating machinery and propulsion motors, auxiliary electrical machinery and equipment, and shipboard electrical power distribution systems. In general, engineers' examinations and certificates of competency are given either for steam or for motor ships, depending upon the practical experience and the training acquired by the candidate. In addition, ship's engineers are also required to possess a first-aid certificate. RADIO OFFICERS

The presence of a qualified radio operator is required on all merchant vessels by the Convention for the Safety of Life at Sea (SOLAS). The duty of a radio officer on a merchant vessel is to control the operation of all apparatus associated with the ship's radio transmitting and receiving equipment, in compliance with official regulations governing its usc. He is responsible for receiving and recording navigational and technical data, and he handles all radio communications, ship-to-ship and ship-to-shore, for the vessel, its passengers and crew. Different grades of certification are given according to the experience and professional competency of radio officers for foreign-going, home and local trade vessels. A second-class certificate generally authorizes the holder to act as the sole radio operator of any cargo vessel, but as an assistant to a first-class operator who may be required on passenger and certain other vessels. To qualify for a certificate as a ship's radio officer, the candidate must complete a course of study at a school of radio telegraphy and then pass a professional examination which is generally prescribed and conducted by the national authorities responsible for telecommunications generally, and which may also issue their own certificate in radio telegraphy. Candidates may then be granted an appropriate certificate for a sea-going radio officer and sign on board ship in this capacity. Alternatively, he may be required to complete a period of practical experience at a radio station ashore or at sea befor ASEAN region. In all countries, efforts have been made to achieve high standards of training. Maritime training is generally accorded high priority and is being approached with a commendable sense of responsibility in spite of sometimes limited physical resources. For the most part, training courses are geared to a formal examination and certification structure, with certification generally conducted in a proper manner. Against the positive and favourable findings of the survey, however, a number of problem areas were also identified. As the programme of assistance was designed to redress these problems, it is considered appropriate to elaborate on them. As maritime training is now covered to a great extent by international convention, the institutional framework in which it is conducted has become a matter of importance. While the need to meet the 1978 STCW Convention is recognized and training is being administered accordingly, institutional patterns vary between countries and sometimes adversely affect the quality of training. Training is frequently organized and planned without detailed information on seafarers' employment patterns on national or foreign-flag vessels. Manpower planning is generally inadequate or inaccurate, often ignoring external factors affecting demand for seafarers skills, such as economic conditions and changing technologies. Thus, training resource planning, has led, in some cases, to

40

Edmond M.]. Corten

emphasis being placed on the number of trainees rather than on the quality of training. The attitude of shipping companies, which arc among the principal beneficiaries of trained manpower, was found to be disappointing, not always helpful to the good conduct of training establishments. With one notable exception, shipping companies do little to assist the training institutes either through financial support, provision of surplus equipment, or even provision of suitable seagoing berths for trainees. In many ASEAN countries, shipping companies are represented either directly or through their associations on committees overseeing training, but their contributions vary considerably. Generally, there are no mechanisms which require employers, national or foreign, to comribute materially to training. Standards of organization and management of training have shown wide variations. In many cases, the administrative effort is substantial and thoroughly applied to the task of record keeping and other routine matters. Management of training itself is generally less thoroughly done. Lack of experience, insufficient knowledge of what is going on in the maritime world, lack of awareness of what can be done in training were frequently considered to have caused the absence of clear training objectives. The insufficient awareness of training techniques may also largely be attributed to the same reasons. Staff-student ratios in many institutions appear generous, and staff of the maritime trdining establishments are generally enthusiastic and concientious in the conduct of their duties. But staff were frequently found hampered by lack of training experience and expertise, lack of professional experience and expertise; and lack of facilities. This finding is, however, of secondary importance as the most sophisticated facilities are of little use to unskilled or non-imaginative staff. Low status and rewards of maritime trainers in some coumries have adversely affected the recruitment of staff, caused the employment of rather junior staff or led to over-promotion or high staff turnover. All of these affect the quality of training. Moreover, it was found that only in some cases had staff received some instruction in the techniques of training; throughout the region as a whole they were in the minority. This deficiency was widely recognized. I~ was also observed that those who had received expensive overseas training and education in training techniques were often promoted to higher ranking administrative positions in which the acquired knowledge could not be used. Basic classroom techniques are used as the main means of instruction. Handouts are often provided by staff, ranging from straight quotations to completely original material. There is generally an emphasis on applications rather than on principles, but this tends to be a feature of maritime training everywhere. Films, videotapes and other audio visual aids are used by some institutes but the capability of staff to design stimulating course material or to use available equipment to the fullest extent was disappointing. There is a wide variation in the physical resources available in the ASEAN maritime training institutions. While one can be greatly impressed with how well-equipped some institutes are, it can be equally surprising to see how badly equipped others are. It must be a matter of concern that some of the training

ESCAP Involvement and Impact of Technical Changes on Training

41

establishments with the highest output of students are the worst equipped (and possibly the worst staffed also) while some of the best equipped institutes provide less effective training than they should. Given this assessment of the present situation in respect of problems affecting maritime training in the ASEAN region, the questions that arise are: what will the future demands for training be, and what then should be the appropriate programme of assistance to the ASEAN region? While no dramatic expansion in shipping is expected in the near future, the general increase in trade within the ASEAN region, and between this region and other ports of the world will probably result in steadily increasing traffic. Structural changes in the fleet composition will probably be the most significant development, with emphasis on the introduction of new technology, ship operation and managerial methods. Rising levels of sophistication of propulsion machinery, navigation and communication equipment, auxiliary machinery and cargo-handling equipment will probably be an important ingredient in the development of the ASEAN fleets. At the same time, managerial development towards on-board autonomy in respect of operation and management, including the economic and commercial implications and consequences of decisionmaking by ship officers, will probably take place.. While the present capacity of maritime training institutes may be sufficient for the time being as ship crews are reduced in numbers, it is expected that the demand for trainers will change. Their numbers will have to increase because of growing demands placed on the training of officers and ratings, and their capabilities will have to be enhanced as a result of the higher levels of sophistication demanded for the effective and efficient running of modern ships. The main development objective for the programme of assistance to the maritime training institutes of the ASEAN region was therefore identified to be the training of maritime trainers so as to develop their skills in presenting updated programmes, and mastering and using the best of modern teaching methods and audio/visual aids in the most effective way for student participation and learning. Such staff upgrading will help ensure that curriculum development and standards of teaching are enhanced throughout the ASEAN region. Apart from activities within the framework of a "training of trainers" programme, the proposed assistance, while recognizing the desirability of equality and uniformity in the substance and quality of maritime training, should also seek to redress differences in this field between the ASEAN member states, and pay attention to the availability of teaching tools and equipment. The programme of assistance was designed to include a series of seminars/training courses dealing with the following subject topics: SEMINAR

TOPIC

First seminar

The management of training and the development of methodology. Development of specialized safety training: a) tanker safety;

Second seminar

42

Edmond M.]. Corten

Third seminar

Fourth seminar

Fifth seminar

LPG/LNG procedures; and b) Modern fire-fighting training techniques c) (a) The use of simulators and advanced technology equipment in training: simulators; (i) (ii) computer-aided learning; and (iii) high-technology equipment. (b) Language teaching: the use of "Seaspeak" in the development of a maritime vocabulary. (a) The development of safe navigation procedurl's: control of traffic and prevention of accidents; (i) (ii) how to train studmts to usl' ARPA, etc. (b) Training of seafarers to understand the use of: the latest design in automatic bridge equipment; (i) (ii) the latest electronic engine room equipmerlt. How to develop courses to meet the latest requirements, stipulated under international conventions, such as STCW, MARPOL, and so forth.

Such courses would seek to redress differences noticed in the levels of maritime training. However, problems related to language and communication training haw emerged with increasing urgency. Varying proficiencies in the English language have influenced the effectiveness of the recent seminars. A distinction should be made, however, between the general application of the English language as the established means of communication in shipping (or for that matter, in transport) and personal fluency in English and related teaching. The need to find a common technical language such as "Seas peak" is relevant for all ASEAN countries; training in the English language itself is not adequate. A growing concern in recent years has also been noted. Traditionally not given great prominence in officl'r training, the economics of shipping, commercial cost implications of the decision-making process in shipboard-mana gement, introduction to management techniques, and element of personnel management have received scant attention in maritime training. Yet senior ship officers increasingly have to make decisions in these areas. Shipping companies provide a range of in-house training, or use outside training opportunitil's for their officers, but the question asked more and more frequently is: to what l'xtent should modern seafarers' training recognize these needs by adjusting syllabi/ curricula accordingly? The ESCAP secretariat is in the process of developing, in co-operation with IMO, a regional seminar on seafarers' training and certification which will discuss, among other topics, the relevance of training in the economics of shipping as an integral part of the training of maritime officers. Some of the other topics for discussion at this seminar will be: the adequacy of seafarers' training for optimum utilization of modern technology, particularly electronic digital technology, in shipping and shipboard management;

ESCAP Involvement and Impact of Technical Changes on Training

43

integrated training for dual-purpose officers; effects of reduced manning scales on social and working relations on board; and fuel efficiency and maintenance. The introduction of advanced ship automation has an important impact on the size of a ship's crew. A crew size of eighteen men is quite normal nowadays and a further reduction to twelve in the near future is not so much a matter of technical possibility as it is a matter of coming to terms with the trade unions. The impact on total manning requirements is, thus, large and as many ASEAN countries are exporting seafarer's skills, the seafaring labour market may come under serious threat. The impact on a crew's composition as regards skills and training requirements is even greater and will have far-reaching consequences for maritime education. In many of the ASEAN countries wage levels are relatively low and as a result ship crews are comparatively large, allowing lower general levels of skills to be maintained. Admittedly, this reflects more on ratings than on officers. Shipboard automation and applied computer technology is substantially changing this situation. Not only are higher skills required but these skills have increasingly to be provided by fewer crew members. A need for the reorganization of work duties and responsibilities among the ship's crew is obvious and this will certainly include officers. The ESCAP secretariat is planning a study on the impact of automation and applied computer technology on manpower planning and training. The result of this study will be further discussed in the planned seminar on seafarers' training and certification. Although both this study and the seminar will be of a regional character, it is of great relevance to the ASEAN sub-region of ESCAP.

5

Employment and Hiring Practices from the Viewpoint of Shipowners, Manning Agencies and Unions Ghani Ishak, A. Francisco J. Mier, Assada Mitmanochai and Ong Tiong Hui

Introduction

This paper aims to document the information contained in the five country reports (presented in Part 2) that pertains directly to the employment of seafarers in Indonesia, Malaysia, the Philippines, Singapore and Thailand. It also aims to extract from the reports information relevant to hiring practices affecting seafarers in these countries. In the first part of the paper, the issues pertaining to the employment of seafarers in these countries are examined. This will deal with the levels of employment of seafarers, government policies affecting such employment, conditions of employment, patterns of employment and problems concerning such employment. In the second part, the issues concerning hiring practices from the viewpoint of shipowners, manning agents and unions in these countries .are addressed. This will include the means by which employers secure their crews, the criteria they use in recruitment, the factors which influence their choice of employees and the problems confronting employers and seafarers with regard to hiring practices. It will also report on the criteria of four companies interviewed, two shipowners and two ship management companies. Employment

Indonesia Indonesian seafarers do not have to be registered. Neither the Indonesian Seamen's Union (ISU) nor the government maintains records on the number of seafarers. However, as all seafarers are required to have a seaman's book, the number of books issued can be used to estimate the number of Indonesian seafarers. The total number of books issued up to July 1985 was 73,245 (see

Employment and Hiring Practices

45

Exhibit 5.1 ). It must be noted that these books are issued only to seamen working in Indonesia; seafarers employed in foreign countries do not possess such books. A total of 780 shipping companies were registered with the Directorate General of Sea Communications as of 1982 and represent the major source of employment for seafarers. Apart from these companies, local sources of employment include shipping companies operating ferry services, inland waterways and governmentoperated shipping, such as light tenders, dredgers, customs ships, Coast Guard ships, and so on. Most state-owned companies pay lower wages than private ones but they are preferred by many seafarers because they provide better benefits and greater job security. Another factor that outweighs higher wages is the route plied by the vessel and whether or not the company permits the seafarer to carry on his own business, a practice which is illegal. The Minister of Manpower has identified the shipping sector as one solution to unemployment in Indonesia. Employment in foreign shipping companies (see Exhibits 5.2 and 5.3) is also viewed as a means of building up foreign currency reserves. In an effort to increase the employment of seafarers in foreign shipping companies, the following measures have been taken: l.

2. 3.

all recruitment of foreign seafarers is to be channelled through the ISU which sets standard wages that are competitive in the international market; there are no capital requirements for the establishment of recruitment agencies; and seafarers leaving the country to join their ships overseas are exempted from paying the departure tax of US$140.

However, several government policies have reduced employment opportunities for seafarers. They include a) the forced scrapping policy; b) the phasing out of log exports; and c) the ban preventing officers from joining foreign shipping companies. Malaysia It is estimated that there are 5,000 Malaysian seafarers, of which only 1,700 had voluntarily registered with the Central Mercantile Marine Fund by late 1985. It will be quite some time before proper accountability of seafarers is possible unless legislation imposes compulsory registration of seafarers. Although there are more than 30 ship-owning companies registered in Malaysia, only eight operate internationally. Of these, only two are known to be active in the employment of national seafarers: the Malaysian International Shipping Corporation (MISC) and Pemas National Shipping Lines (PNSL). MISC employed a total of 1,926 seafarers (October 1985) including 232 foreigners. PNSL employed 278 seafarers (September 1985) including 57 foreigners (see Exhibits 5.4 and 5.5.) Government policy in respect of the promotion of seafaring as a profession is negligible. Malaysia has insufficient trained manpower to fulfil the requirements of the existing maritime community. As such, there is no curb on the

46

Ghani Ishak, A. Francisco]. Mier, Assada Mitmanochai and Ong Tiong Hui

employment of foreign seamen on Malaysian vessels except that foreign seamen holding certificates of competency issued by non-Commonwealth countries need a certificate of exemption from the Marine Department prior to engagement. A foreign seaman could, however, be requested to vacate a position if a Malaysian seaman subsequently becomes capable of filling the position. Foreign-flag vessels engaging Malaysian seamen are required to pay a bond. This is meant to discourage the stranding of Malaysian seamen in foreign ports, resulting in the burden of repatriation costs falling on the Malaysian Government. In traditional shipping, employment is offered to persons without relevant experience except where legislation requires otherwise. In domestic shipping, officers remain in the trdde as they are restricted by their qualifications. Ratings generally prefer to be employed in international trades. The period of service on board ships in domestic trades is one year but the likelihood of requests for extension of service is high as a large percentage of seafarers are non-nationals. In international shipping, the period of ship-board service ranges from four to nine months, depending on the regularity of the schedule and the type of vessel. However, the current trend indicates a likely reduction in the period of service in the future. There is no shortage of recruits for rating training but the ethnic quota set by the New Economic Policy in the recruitment of cadets results in prospective employers occasionally being saddled with candidates not of their choice. As foreign seafarers from surrounding countries are readily available at a lower cost to shipowners, the tendency is for shipowners to avoid employing Malaysian seafarers where circumstances permit. In addition, there are many employment opportunities ashore for more senior officers. Therefore, it is only a matter of time before they are attracted from the sea to the challenge and comforts of a shorebased life, continuing the current shortage of seafarers.

The Philippines There are more than 200,000 trained seafarers in the Philippines. The number of Filipino seafarers processed by the National Seamen's Board-Philippine Overseas Employment Administration in the period 1975-85 grew annually by an average of 7 per cent. (See Exhibit 12.2 in the Philippine country report in Part 2.) The seafarers are employed on vessels of a variety of flags of registry. In 1985, vessels flying the Panamanian, Liberian and Filipino flags were the largest employers, accounting for 33.6 per cent, 20.6 per cent and 12.4 per cent respectively. (See Philippine country report in Part 2.) The government, through the Philippine Overseas Employment Administration prescribes the salary scales to be adopted by the manning agencies in their negotiations with the seamen and the principals. These rates are more or less in accordance with ILO wage standards. Requirements for the licensing of manning agencies have been made more stringent. The tax rate for Filipino seamen is only around a tenth of that normally paid by land-based workers. In the past, legislation required the compulsory remittance of dollar earnings of overseas

Employment and Hiring Prartices

47

workers but recently this order was repealed to alleviate the plight of seamen and their families. The government favours the private manning sector with its "hands-off" stance, and restrains from directly recruiting seafarers on behalf of private principals. Some groups have complained of "over-regulation" on the part of the Philippine Government. The number of agencies responsible for accreditation in one form or another has been cited as an example. The ineffectual regulation of the training sector has resulted in the proliferation of maritime training centres. This makes it difficult to regulate these centres to ensure compliance with industry standards. The financial squeeze experienced by many shipping companies as a result of the depressed state of world shipping has made the companies selective about specific elements in their cost structure, one of which is manning costs. Stiff internal competition has resulted in "unethical" practices such as "pirating" of principals and the exploitation of seafarers who are eager to receive dollar wages. There is also external competition posed by the manning sectors of the People's Republic of China, India, Pakistan, Sri Lanka and South Korea. Seafarers from these countries are attractive to shipowners because of the lower wage rates they require. The real causes of the .Jagging demand for Filipino seafarers may be a combination of wage levels, the quality of seafarers and a host of other factors which require further research and analysis. Finally, advances in maritime technology in ship design and operation also pose a challenge to the industry to produce qualified seamen to meet this demand. The key problem lies in financing the upgrading of Filipino seamen. More funding is needed apart from the contributions already being received from Japan and Norway.

Singapore The main motivation for expanding Singapore's national fleet appears to have been the creation of employment on Singapore-registered ships. The reason put forward for opening the shipping registry to foreign shipowners was the creation of employment for local seafarers at a time when unemployment was a problem in the 1960s. Although there are no manning regulations on foreign-going ships requiring the employment of local seafarers, local trade and home trade ships are required to employ 50 per cent and 100 per cent local seafarers, respectively. Inducements to shipowners of Singapore-registered ships to hire local seafarers is provided in the 50 per cent refund on the annual tonnage tax. The savings to shipowners are not considered large in that a 10,000-ton ship pays an annual tonnage tax of only S$2,000. There are no minimum manning requirements for Singapore-registered ships. However, Section II of the Merchant Shipping Act, 1972, lays down the following requirements for officers for the various categories of ships, as shown in Exhibit 13.2 of the Singapore country report. There has been a serious decline irf both the number of seamen on the register and employed at sea, as discussed in the Singapore country report. The majority of Singaporean seamen are employed on Singapore-registered ships. Indeed, the

48

Ghani Ishak, A. Francisco]. Mier, Assada Mitmanochai and Ong Tiong Hui

proportion of employed seamen working on Singapore-registered ships has gradually increased from 65 per cent in 1978 to 91 per cent in 1984. Only a small proportion of Singapore seamen are employed on other ASEAN-flag ships. Shipowners of the traditional maritime nations of the Netherlands, Norway and the United Kingdom, and the open-registry state of Panama have significantly reduced their employment of Singaporean seamen. The drop in demand for Singaporean seamen can be attributed to several reasons: 1. 2. 3. 4.

the continued recession in the shipping market since the end of the 1970s; the high wages of Singaporean ratings, especially engine room and deck seamen; the reduced manning requirements on modern ships; and structural changes in the shipping market.

Further evidence of the changing nature of employment of Singapore nationals comes from examining the crew agreements (CAs) opened and closed (see Singapore country report for further details). The number of crew agreements opened increased from 1972 to reach a peak in 1976 before declining thereafter. However, the number increased again in 1982. The number of crew agreements signed with Singapore-registered ships has been varied, ranging between 600 and 750 per year. The number of seamen signed on increased to reach a peak of 31,000 in 1978 before being drastically reduced to about 13,600 in 1984. It would appear that lower manning levels on board ships have been responsible for the recent decline in employment although the number of crew agreements opened has remained high. Those seafarers who are still working are largely employed under CAs. As a related issue, data from the Singapore Maritime Officer's Union (SMOU) show that membership has increased rapidly and may be related to the effectiveness of the Union in signing CAs with shipowners. The number of CA vessels increased from 12 in 1976 to 112 in 1981. The fourth reason is illustrdted by the decline of employed seamen in the home and local trades. The application of cabotage rules and other measures by neighbouring countries to promote their own merchant shipping has caused shipowners to re-register their ships under the flags of these countries. Despite the poor employment opportunities, Singaporean seamen have been choosy about taking up available vacancies. In 1981, there was only a 76 per cent success rate in recruitment for available vacancies. To provide an additional incentive to attract new entrants, the earnings of seafarers have been exempted from income tax. The difficulties encountered in recruiting sufficiently qualified Singaporeans as trainees have also been the result of the abundant shore jobs available. Hopefully, generdlly rising standards of education in the Republic mean that the quality of entrants is likely to improve, even if the number of entrants does not.

Thailand There is no set government policy in Thailand with respect to the employment of Thai nationals on ships of any nationality.

Employment and Hiring Practices

49

According to the Thailand country report presented in Part 2, of the total number of personnel employed on Thai-flag foreign trade vessels (2,812), 45 per cent were expatriates and 55 per cent were Thai. Among the foreigners, 36 per cent were officers and 64 per cent were ratings. The number of Thai seafarers employed in domestic trade (national or foreign flag) vessels was 1,289. Thailand is expanding its national fleet and this will result in a greater demand for trained seafarers at all levels. In a move to meet this demand, the Merchant Marine Training Centre (MMTC) is establishing its permanent campus and procuring the necessary equipment to produce a sufficient number of trained personnel.

Hiring Practices

The Viewpoint of Shipowners INDONESIA

The only shipping employers' association existing in Indonesia is the Foreign Shipowners and Employers Association. As the name implies, it is an association of foreign shipowners which employ Indonesian seafarers. The aim of the organization is to provide employment opportunities for Indonesian seafarers and to transfer technology in shipping. The organization accepts only bona fide companies as members. Nineteen foreign shipping companies were registered as of October 1985. MALAYSIA

The Malaysian Shipowners Association, often referred to as MASA, was formed in November 1976 with the aim, among others, of uniting and developing potential national commercial shipping to achieve maximum efficiency in terms of shipping services, both . domestically and internationally. With the government's dedication to making Malaysia a maritime nation, MASA strives to play a positive role in realizing the national goal. As an association of shipowners, MASA aims to provide the forum to represent and safeguard the interests of the Malaysian shipowning community and to communicate their views on issues (cabotage policy, incentives to shipping, and such) to the appropriate authorities. Its success in this role is documented in the Malaysian country report in Pan 2. PHILIPPINES

The employment of Philippine seafarers is mainly managed by private manning agencies. For a discussion of their operation, see the section "Manning Agents". SINGAPORE

Two major shipowning companies which operate their own ships were interviewed: Company A and Company B. Their hiring practices are detailed below. Company A's crews consisted of 98 per cent Singaporeans. Singaporean seafarers were preferred to other nationalities, with Filipino seafarers as a second

50

Ghani Ishak, A. Francisco f. M1er, Assada Mitmanochal and Ong Tiong Hui

preference. Their reasons for preferring Singaporeans were similar to those of Company C, a ship management firm profiled later. This firm reported that it would avoid having a crew of many mixed nationalities because it made management more difficult. They would also avoid hiring seafarers without experience. Out of necessity they had hired seafarers from Denmark, the United Kingdom, and Burma. Company B's crews comprised of 95 per cent Thai seafarers and 5 per cent Singaporeans and Filipinos. It ranked Thais as its first choice, followed by Singaporeans and Filipinos respectively. In this case, the company cited the flaws of Singaporean seafarers as a ba~is for its preference for Thai seafarers. Basically, the Thai seafarers cost less in terms of wages and are not paid overtime, but this is compensated with fringe benefits such as holidays, medical benefits, and so on. Furthermore, the company claimed that the Thai seafarers were more disciplined than the Singaporeans. The company also reported fewer complaints and better co-operation. These claims applied to both officers and ratings. The company also indicated that it has had good experiences with Koreans; in fact, it has a ship that is run entirely by Koreans. The company also mentioned Burmese seafarers as an acceptable choice. Both companies claimed to employ I 00 per cent of their seafarers on a "permanent" basis. Company B recruited seafarers from Thailand through their recruitment officer there. The applicants (mostly ratings) were required to fill application forms in Thailand but the selection was done in Singapore. THAILAND

There is no further information available other than that provided in the country report in Part 2.

Manning Agents INDONESIA

There are no recruitment agencies for the employment of Indonesian seafarers in national shipping companies. Only foreign companies are required by regulation to go through a recruitment agency when hiring Indonesians. MALAYSIA

To operate a manning agency a licence is required and this is issued by the Marine Department. There were two such agencies operating in Malaysia but their licences have been withdrawn. PHILIPPINES

Throughout the early 1970s the number of manning agencies grew and their activities began to attract the government's attention. In May 1974 the National Seamen's Board was created by presidential decree; it was responsible for the

Employment and Hiring Practices

.51

"systematic overseas employment" of Filipino seamen. Another decree was issued that same year creating the Maritime Industry Authority which was tasked with the overall policy co-ordination for and supervision of the Philippine maritime industry. In 1974 also, a group of eight manning agencies incorporated themselves into the Filipino Association of Maritime Employers, another influential group in the seafaring industry. There are almost 200 licensed manning agencies coming principally from the private sector. The manning agency is responsible for making all necessary arrangements to meet the crewing requirements of its principals. Thus, the seafarer's first step towards a job on board a merchant vessel begins with a manning agent. The latter ascertains, by means of documents, referrals and interviews, the qualifications of an applicant seaman. Once accepted, the seaman's name is included on the manning agent's list of employable seafarers. Further details on the workings of manning agents are given in the Philippine country report in Part 2. SINGAPORE

The National Maritime Board (NMB), a statutory board established by virtue of the National Maritime Board Act, 1972, under the Ministry of Communications and Information is the main body concerned with the regulation and administration of employment, welfare and training of ratings. One of its objectives is to develop, promote and regulate seafaring employment. Recruitment of ratings and officers in Singapore must be done through the National Maritime Board or the Mercantile Marine Office in the Marine Department respectively. Exemptions for hiring foreigners and seamen with the requisite certifications are granted when there are no available local seamen and, in the case of officers, when qualified officers are unavailable and the officers concerned have the requisite experience and skills. Most shipping firms that are involved in ship management supply the entire package which includes operating and manning the ship. However, with the removal of the roster system administered by the NMB, there has been an emergence of unlicensed brokers and middlemen who agree to help seafarers secure a job for a fee. Two ship management firms were interviewed (Company C and Company D) regarding their hiring practices. Company C claimed that 50 per cent or more of their officers and close to 100 per cent of their ratings were Singaporeans. They expressed a first preference for Singaporean seafarers, followed by Malaysians and then Filipinos. Among their reasons for preferring Singaporeans were: I. 2. 3. 4.

they are readily available without having to look elsewhere; there is no need to incur transport costs to bring foreign seamen to Singapore; they have confidence in their qualifications; and they speak English.

52

Ghani Ishak. A. Francisco]. Mier, Assada Mitmanochai and Ong Tiong Hui

The reasons for the high ranking of Filipino crew were: 1. 2. 3. 4.

they speak English; they receive good training from well-established academics; they are well-covered by welfare schemes under their Filipino agreements; and Filipino officers are 50 per cent cheaper than Singaporean ones, and Filipino ratings are 30-40 per cent cheaper than Singaporean ones.

The other sources of seafarers indicated by Company C were Burma, India and Britain but these comprised a small percentage of their employees. Company D claimed that 50 per cent or more of both their officers and ratings were Singaporeans. They ranked Singaporeans, Filipinos and Malaysians as their first, second and third choices respectively. The reasons they gave for preferring Singaporeans were: I.

2. 3. 4. 5.

they are based in Singapore; they are available in a short time; the company is familiar with Singaporean crew; the company has had good experience with Singaporeans compared with other nationalities of seafarers; and their wages are at an acceptable level and the company feels it gets good quality seamen for the price it pays.

They added that certain specialized ships have a greater need for better quality crew that cost more, and that this varies with the needs of each ship and the shipowner's preference. Other sources of seafarers included Burma, China, and Europe which constituted a small percentage of their employees. Company D maintained its own crew list and used the help of manning agencies and unions. Company C claimed that they engaged most of their seafarers through the seamen's unions. The seafarers come under the collective agreements which cover the ships they sign on. As there are not enough Singaporean officers to meet the demands of the Singapore companies; especially in the senior ranks, the employer has the freedom to hire from other sources. Company C reported that it hired 100 per cent of its seafarers on a "permanent" basis. (This means that the seafarers collect a fixed salary and are entitled to normal leave and other benefits.) On the other hand, Company D hired most of its seafarers on a contractual basis and the period of contract might be for 6 or 12 months. The seafarers might be hired for a probation period before being considered for a permanent contract. These employers maintained their own roster to keep track of their seafarers signing on and off. Using this roster, crews take turns going to sea and leave is also scheduled for them. Furthermore, seafarers who have demonstrated good behaviour, performance or have relevant training or experience stand a better chance of securing a vacancy when it becomes available. THAILAND

There is no further information available.

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53

Unions

Based on the information provided in the country reports in Part 2, there are no seamen's unions in Thailand or Malaysia. However, there is a seamen's association in Malaysia, the Seamen's Association of Penang. In 1985 the Malaysian Maritime Institute was established but it functions more like a professional body than a union. In Indonesia, there is one union which represents 36,000 of the estimated 73,000 seafarers. The unions in the Philippines and Singapore seem to be the most organized. They, together with those of Indonesia, are affiliated to the International Transport Workers' Federation (ITF) but the Indonesian affiliate does not follow the minimum employment conditions set by the ITF. The Philippine-based AMOSUP has 15,000 members, good organization, and direct ITF affiliation. AMOSUP's actions are not limited to arbitration and negotiation for better employment terms for its members but it also virtually performs the functions of a manning agency. For its members, it provides facilities and services such as medical care, recreation, additional training and even temporary lodging. Another seamen's group is the Concerned Seamen of the Philippines which claims 5,000 members and which, apparently, is oriented along socialist lines. Currently in Singapore, two unions represent seafarers: the Seamen's Organization of Singapore (SOS) and the Singapore Maritime Officers' Union (SMOU). Strong membership increases have been experienced by both since the mid-l970s. Interviews with SOS and SMOU showed that they faced some problems. The unions help their members to find employment and, therefore, unemployment was a main concern of the SOS. The removal of the roster system administered by the NMB has resulted in the emergence of unlicensed brokers and middlemen who take advantage of seamen desperate for work. The union expressed the hope that the NMB would re-open the roster system. The SOS is also in an embarrassing position in that local shipping companies employ 6,000 foreign ratings as opposed to 2,000 local ratings, that is, a ratio of l Singaporean to every 3 foreigners. SOS also said that retraining its members posed certain problems; those without a formal educational background have difficulty in retraining. One example is that of a chief cook w.ho had to give up his job because he could not cope with his responsibilities, which required accounting knowledge. The SMOU does not face as many problems with unemployment, as there arc insufficient officers, especially in the. higher ranks, to meet industry demands. Both the SOS and SMOU are resisting efforts to remove the requirement that a minimum percentage of Singaporeans must be hired in the home/local trades. Conclusion The Philippine and Singapore seafaring industries are experiencing unemployment problems. This has manifested itself in the form of "rotation of assignments" in the Philippines and unemployment among ratings in Singapore. On the other hand, Malaysia and Thailand have insufficient seamen

54

Gl!an£lsilak, A. Francisco]. Mier, Assada M£tmanocilai and 011g Tiong Hui

to meet the needs of the industry, while in Singapore, this is the case with senior officers. In Malaysia, there are no curbs on the employment of foreigners on Malaysian vessels but exemptions are required from the Marine Department in order to do so. This is also the case in Singapore. In Thailand, 45 per cent of the crew on foreign-going vessels are foreigners and no curbs exist. Stiff internal competition has resulted in "unethical" practices and exploitation of seamen in the Philippine seafaring industry. Unemployment among ratings in Singapore has resulted in the emergence of illegal brokers who take advantage of seafarers desperate for work. Seamen are not required to be registered with the authorities in Malaysia or Indom.sia although they are in the Philippines and Singapore. Without registration, it is difficult to ensure "fair treatment" for seafaring nationals. Thus, a register is only a first step to ensuring that the legal rights of seafarers are protected. The absence of further information on the problems of ASEAN seafarers and their global as well as regional competitiveness provides avenues for further research.

EXHIBIT 5.1 Number of Seaman's Books Issued by Directorate of Shipping and Harbours, Indonesia 1981 -July 1985

~

M

1981

1982

1983

1985

900 550 1250 1250 400 550 1650

6420

2250 1700 3400 1700 4600 2450 2650 1900

3050 1050 2250 1400 2900 3400 150 1400 2600 700 550 1800

llOO 1950 1200 400 350 175 2050 1400 850 750

1550 200 650 850 llOO 50 700 1050 350 1250 850 450

TOTAL

23800

21250

12725

9050

GRAND TOTAL

73245

January February March April May June July August September October November December

800 250 1000 llOO

ll50

1984

13.~0

SovRCE: Manning Section of Directorate of Shipping and Harbours.

n.a. n.a. n.a. n.a. n.a.

55

Employment and Hiring Practices

EXHIBIT 5.2 Number of Seafarers Employed by Foreign Shipping Companies as Registered by KPI (Indonesia)

~

M

January February March April May June July August September October November December TOTAL

1981

1982

1983

1984

235 199 311 267 250 327 229 227 573 285 285 201

154 188 322 321 307 311 273 363 212 386 224 196

309 233 289 458 300 384 272 387 334 337 296 311

361 479 293 285 209 233 275 279 256 301 281 300

3389

3257

4010

3552

SouRcE, KPI (Indonesian Seamen's Union)

EXHIBIT 5.3 Number of Seafarers Employed by Foreign Shipping Companies as Registered by DOFSAH

~

M

January February March April May June July August September October November December TOTAL

1981

1982

1983

1984

1985

199 177 270 264 177 189 187 157 399 389 323 193

170 129 309 264 302 261 192 378 161 265 329 92

253 259 234 506 281 294 359 326 311 345 299 233

259 430 260 291 151 192 304 261 345 341 172 203

258 356 232 268 263 181 203 n.a. n.a. n.a. n.a. n.a.

2924

2912

3689

3072

1760

SouRCE: Directorate of Shipping and Harbour (DOFSAH).

56

Ghani Ishak, A. Francisco f. Mier, AJStUin Mitmanochai and Ong Tiong Hw

EXHIBIT 5.4 MISC Staff Composition, October 1985 Malaysian Senior OHicers ] unior Officers Petty OHicers Ratings Cadets TOTAL

Others

Total

164 373 263 695 199

165 67

329 440 263 695 199

1694

232

1926

Senior Officers include -Masters - Chief Officers - Chief Engineers - 2nd Engineers - Radio Officers

Petty Officers include -Bosuns - Leading Seamen -Oilers - Chief Stewards -Cooks - Pumpmen

SouRCE: Malaysian International Shipping Corporation.

EXHIBIT 5.5 PNSL Staff Statistics, September 1985 Malaysian Master Chief Officer Second OHicer Third Officer Cadet Radio Officer Chid Engineer 2nd Engineer 3rd Engineer 4th Engineer Electrical Engineer Engine Cadet Catering OHicer Doctor Bosun G/P Rating Cook Pumpman

Others

Total

4 8 6 5 30 2 0 3 15 7 4 8 9 0 8 98 12 2

6 5 6 4 0 7 lO 8 I 3 6 0 0

10 13 12 9 30 9 lO 11 16 lO lO 8 9

0 0 0 0

8 98 12 2

221

57

278

I

SouRct: Perbadanan Nasional Shipping Berhad (PNSL).

6

Wages, Conditions of Work and the Welfare of ASEAN Seafarers Ghani Ishak

Introduction

In the course of this research, the author found wide disparity in the range of wages between countries within the ASEAN region. It was decided that information from other countries neighbouring ASEAN could be useful for reference purposes. With that in mind, basic information was also obtained from Burma, Taiwan and Korea. The information on terms of employment in the United Kingdom was readily available and hence included in the comparative tabulation.

Wages A comparison of wages (Exhibit 6.1) was initially based on information received from the following sources:!.

2. 3. 4. 5. 6. 7. 8. 9. 10. II.

A Malaysian shipowner/operator Indonesian Seafarers' Union Filipino Ship Management Company Burmese Seamen Employment Contract Division Taiwanese Ship Management Company Korean Manning Agency United Kingdom owner/operator A second Malaysian owner/operator Singaporean owner operating under Malaysian management Singaporean owner/operator Malaysian authorities' recommended minimum wages.

In as far as the officers are concerned, wages in the United Kingdom far exceed those of Asia in general, and ASEAN in particular. Unfortunately, rates for ratings were not available for inclusion. Certain categories of officers and all ratings in Korea seem to enjoy high remuneration, but the figures shown under column "F" include overtime. However, this gross amount is comparable to the officer category of other

EXHIBIT 6.1 Wages C..omparison (In Malaysian ringgit) Rank Master Chief Officer Second Officer Third Officer Radio Officer Chief Engineer Second Engineer Third Engineer Fourth Engineer Elect. Engineer Bosun Able Seaman Seaman No.1 Oiler Greaser Engine Rating Chief Steward Cook Steward

A

5,000 2,400 1,600 1,200 1,600 4,800 2,400 1,550 1,200 1,500 500 350 280 445 350 240 445 420 240

B

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 952 664 599 918 664 599 1,094 867 630

c 3,985 2,920 1,695 1,224 1,695 3,743 2,920 1,695

845 700 483

E

D

3,719 2,524 1,860 1,142 1,541 3,719 2,524 2,046 1,222 1,408 555 447 398 483 447 386 5S5 507 362

4,250 2,657 1,691 1,401 1,932 4,009 2,657 1,691 1,401 I, 111 1,111 894 773 I, Ill 894 749 1,807 725

'-" 00 G

F

5,917 3,405 1,787 1,521 3,526 5,796 3,405 1,787 1,521

6,279 4,301 3,666

4,500 2,800 1,750

5,867 4,301 3,335

1,700 4,400 2,800 1.750

1,811 1,135 773 1,811 1,135 821 1,811

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

821

I

H

450 315 280 450 315 280 450 350 280

4,800 2,800 1,800 1,250 1,800 4,600 2,800 1,800 1,250 1,800 550 350 280 350 280 l,llO

280

J 4,702 3,556 2,523 2,294 2,523 4,702 3,556 2,523 1,835 2,523 1,095 895 734 1,095 939 1,095 1,095 741

K

4,000 1,900 1,300 1,000 1,200 4,000 1,900 1,300 1,000 1,100 450 320 280 450 320 280 450 380 280

Including overtime NOTES: A. Malaysia (Owner) Indonesia (Association) B. c. Philippines (Ship Management) Burma (Authorities) D. Taiwan (Ship Management) E. Korea (Manning Agency) F.

G. H. I.

J. K. n.a.

United Kingdom (Owner) Malaysia (Owner) Singapore (Owner/Malay Operator) Singapore (Owner) Malaysia (Authorities) Not available

,..C'J "::1. ~ ,.. ",.

Wages, Conditions of Work and Welfare

59

countries as, in most cases, overtime is not payable to officers. But, in the case of ratings, Korean seafarers enjoy far better wages. With the above two exceptions, it is noted that for the most senior ranks, Malaysia leads the field, with the Philippines some 20 per cent below that of Malaysia. This reflects the importance placed by Malaysia on the senior ranks because of the shortage of such qualified seafarers and the high number of expatriates in these ranks. Otherwise, Singapore offers the highest wages, for both officers and ratings. Leaving aside Singapore, the variance between the highest and lowest wages for officers is less than I 0 per cent. As for ratings, Malaysia offers the lowest basic wages, with other ASEAN countries nearly doubling these figures. The Korean scale is exceptionally high as overtime is included. At a glance, it would seem that it is most economical to employ Malaysian ratings. However, it must be borne in mind that service conditions for Malaysian seafarers must be read in conjunction with the scale provided in order to determine the gross cost. Minimum wages are determined as follows:Singapore Malaysia Indonesia Philippines : Thailand

Singapore Maritime Officers Union (SMOU) Singapore Organization of Seamen (SOS) Central Mercantile Marine Fund (CMMF) recommendation only Kesatuan Pelaut Indonesia (KPI) Indonesian Seafarers Union Ministry of Labour approval Not available

Agreements For shipowners/operators in Singapore, a collective agreement with the SMOU and SOS would mean a commitment to abide by the agreed terms for the year, whenever a member of either of the unions is engaged for employment. The collective agreements are negotiated for renewal between three and six months prior to the dates of expiry. The full terms and conditions of service are negotiated and from samples of the agreements (Appendices I and II), the unions seem to provide maximum protection for their members. It is, however, worth noting that the agreements do not touch on the subject of discipline of the members of the UniOnS.

Owing to the delay in obtaining legislative approval, the Malaysian Central Mercantile Marine Fund attempts to set out a recommended scale of wages and an outline of conditions of employment. The recommendations encompass overtime rate, leave, meal allowance, pension funds contribution, medical benefits, and msurance coverage. The Indonesian Seafarers Union is facing unemployment problems among its members. In its efforts to promote employment on foreign-flag vessels, the Union reached an understanding with the Foreign Shipowners Employment

60

Ghani Ishak

Association to use a standard agreement for the employment of Indonesian seafarers by foreign companies. Such an agreement, however, is applicable only to the employment of ratings and stipulates the following:Working hours Leave pay Holidays Insurance coverage Miscellaneous

44 hrs/week 3 days/month 13 days/annum US$5,000- natural death US$10,000- accidental death medical, joining and repatriati