Means of Tackling Problems Experienced by Stakeholders of the Seafarers Global Labour Market - Term Paper Example

INTRODUCTION According to McConville and Gleyns (1985), a global labour market for seafarers has emerged over the last 20 years. The development of aglobal network of organizations and agencies whose aims included the management of crew made it a possibility to recruit crews from across the world. With open register ships currently accounting for over 50% of the global trading fleet and the abolishment of nationality requirements, only developing countries still maintain the tradition of having entire crews sharing the same nationality (Johnston, 1991). While this is the case, many nationals of these developing countries occupy a significant share of the workforce that mans the OECD (Organisation for Economic Co-operation and Development) countries and open register’s fleets (Johnston, 1991). This movement of marine industry workers between flags as a result of the free working environment created by fleet managers and ship owners in assembling crews of different nationalities according to Ron, Stutchbury and Pascoe (1988) actually led to the firm establishment of the seafarers’ global labour market. This report seeks to analyze the global labour market in detail; its formation, and how it has impacted players involved in shipping companies from both developing and developed regions of the world. The report goes further to suggest ways and means of tackling problems experienced by stakeholders of the seafarers’ Global Labour Market (GLM). HISTORY OF THE GLOBAL LABOUR MARKET (GLM) Initially, almost all ships were manned predominantly by people of the same nationality as the ship’s flag (Williamson, 1992). This tradition was held in part as a consequence of legal requirement with countries varying in strength in the enforcement of the law. Besides, it was also considered more practical in as much as recruiting seafarers from other countries was difficult and expensive (Tyner, 2000). Notable exceptions to these requirements, however, arose when the Liberian and Panamanian registers were created in 1949 and 1922 respectively (Tyner, 2000). Neither of the two nations involved had national seafarers’ labour markets. These anomalies however posed no significant threat to the well organised labour markets of Japan and European nations until the prolonged recession of the 70s and 80s hit world trade. The scale and pace of change in the marine workforce in the 80s was widely unprecedented. According to Alderton, in 1987 alone, there was a steady increase in the number of Filipino seafarers working in European-owned ships. The press, throughout the 80s, regularly reported that ship owners had great cost saving potential when they drew on crews from other countries. Such savings could however only be realised by reflagging to nations that had no functional systems that regulated labour and indigenous labour markets. Forty five percent of German-owned ships by 1986, for example, were operated under other flags with such labour market characteristics, the same trend applying to the United Kingdom, Netherlands, Norway and Japan. In general, the savings made out of these arrangements were quite significant to the ship owners. It is however noted that the sudden switch to employing inexperienced crews from sources previously non-established led to an unavoidable reduction in performance standards except in rare cases when such employees were subjected to training (Lane, 2004). CHARACTERISTICS OF THE GLOBAL LABOUR MARKET Today, the GLM is a reality for many seafarers spread out throughout the world except for those engaged in near sea and coastal trades of countries that are least developed economically. One main characteristic of the GLM is its simultaneous global recruitment organisation and global inclusiveness. In other words, while many crew managers may be from preferred nationalities, all nationalities arte considered employable. Further, recruitment to ships (not only into the marine industry) is conducted by a system of globally trading companies that is dynamic. This state of affairs, in reality, results in the creation of a thriving pattern of crews from different nations, and of different cultures (Lane, 2004). While the existence of mixed nationality crews may not be a new phenomenon in history, the modern mixed workforce is distinctively and consciously composed. One’s level of competence is evaluated based on certification procedures that differ from one country to another. The GLM is currently stratified to levels that never existed in once-established maritime national labour markets. There are shared notions among managers and ship owners that only certain nationalities are best fitted for particular ranks (Lillie, 2004). Other notable characteristics of the seafarers’ globalised labour market are: more efficient transnational linkages between national labour markets, manning agents and crew managers, widespread multinational crewing and minimum formal barriers. The market is also known to be devoid of system-wide regulation and has continuously diminishing correspondence between crew nationality and flag of ship (Lillie, 2004). MIXED CREW COMMUNITY In general, seafarers prefer to live and work in an environment full of diversity. Labourers from developing countries notably enjoy the benefit of better pay packages under this kind of environment. Diversity in the workforce according to some people makes it easier to maintain the ship’s hierarchy which translates to better efficiency (Banomyong, 2005). What keeps seafarers together according to some analysts is their shared goal - regardless of position, gender and nationality (Aldcroft and Mort, 1981). World shipping and seafaring has greatly been impacted by the globalisation of the labour market. One main concern has been the issue of safety at sea. According to a British study conducted in 1982, in over 90% of incidents of groundings and collisions and 75% of those involving explosions and contacts, the “human element” was involved (Aldcroft and Mort, 1981). Also attracting particular attraction has been the issue of communication and language. This particular concern has led to the introduction amongst seafarers of a “common language”. English has generally been adopted in a process of linguistic globalisation accompanied by the birth of Maritime English. Maritime English is currently taught worldwide in nautical colleges as a specialist subject (Frankel, 1987). The seafaring industry has long been dominated by males. It is only in recent times that women have taken more active roles in the cruise ships among other marine vessels. In ancient liners like the titanic and Queen Mary, women only served as stewardesses, nurses and telephonists albeit in very small numbers with most of them being white Europeans. This ideally meant that no serious impact could be made by women on the occupational culture of ancient times (Williamson, 1992). Rapid female entry into and employment in occupations formerly reserved for their male counterparts in the 1980 saw almost no changes taking place in the constitution of marine workforces across the world. It is only as a direct result of globalization of the seafarers’ labour market and growth in world trade that women’s shipboard employment increased (Williamson, 1992). The trend, it is noted, began to shape up when both unions and the industry became increasingly frustrated with ever increasing cases of sexual harassment on marine vessels (Alderton, 2004). A balanced sex ratio in the vessels generally has improved crew and passenger confidence in sea travel. Today, more women are employed as qualified seafarers than ever before – thanks to changes in traditional beliefs and attitudes over time. According to studies carried out in the past, the cruise sector employs, as complements, up to 30 percent women (Calvert and McConville, 1983). In spite of changes in women’s employment in seafaring, their overall participation remains low; below ten percent. As a result of the establishment of a global labour force, the rates of unemployment in most developed countries today have increased compared to the early 1970s (Lillie, 2004). The number of unemployed persons in OECD countries has continued to increase steadily reaching levels that are unacceptably high. These developments have especially been grim in Europe (Banomyon, 2005). Developing or less developed countries have greatly benefited from the GLM as many of their citizens get employed in the marine industries of their developed counterparts (Bolton and Bryan, 1983). In other words, unemployment to some level has declined in developing countries such as Thailand, Malaysia, China, Hong Kong and Singapore among many other countries. Shipping companies benefit when they incur lower compensation costs by employing workers from such countries (Banomyon, 2005). CONCLUSION The resort to second registers and flags of convenience with an am of evading labour market regulation has yielded almost no long-term goals despite its initial attractiveness to shipping companies (Banomyong, 2005). In the long term, the process of flagging out has in general led to a manpower crisis where highly skilled and experienced technical workers who can take senior ranks are fewer than what the global market demands. The Joint Maritime Commission & International Labour Organisation (2001) has noted that the global labour market today is a reality for many seafarers spread out throughout the world except for those engaged in near sea and coastal trades of countries that are least developed economically. Seafarers experience several challenges in their trade most of which can be sorted out through stringent implementation of effective regulations and policies (Lillie, 2004). According to Bin (2004), in order to solve problems that face seafarers’ trade, there adjustments need to be made in regulatory frameworks of institutions. This calls for action by decision makers at all levels – regional, national and local in order to come up with policies that work for the good of all stakeholders in the marine industry. It must be realised that a vital precondition for the development of worldwide standards and practices in the global marine industry is the labour market’s stability (Lane, 2000). Stability in this respect will ensure that commodities traded in the global market are transported aboard excellent vessels that are manned with crews that are optimally efficient. A maritime policy worth adoption must be all-embracing, and aimed at establishing or improving the potential of sea-based activities and the maritime economy in an environmentally friendly and sustainable way (Lane, 2000). In order to establish a competitive and sustainable maritime industry, all stakeholders, and marine and maritime sectors must be involved. According to the United Nations Conference on Trade and Development (UNCTAD) (2003), marine and maritime sectors that must play an active role in contributing to the development of the marine policy include ports, maritime services, and research and development, fisheries, shipping, shipbuilding, dredging, marine equipment, offshore, ports, yachting, inland shipping and the navies. Pertinent issues that need to be taken into account when developing marine policies include gender, unity and diversity, sea farers’ working conditions, seafarers’ safety and the law. In appreciation of the fact that the marine industry is as dynamic as any other industry, scholars need to take an active role conducting studies in collaboration with different stakeholders in the industry (Alastair, 1989). Reliable and continuous feedback between employees and employers is fundamental to the wellbeing of any business organisation. Shipping companies, being obliged to employ a detached and distant labour force definitely face a myriad of inevitable challenges (Núñez, Harlaftis & Starkey,1998). This is compounded by the fact that managers, owners and crews in many cases have attachments with different sovereign states. Turnaround times which are in most cases less than a day almost make it impossible for the occurrence of positive interaction between employers, seafarers, welfare organisations and trade unions. In such cases, the creation of an effective and workable system of international regulation becomes a pressing need. Such a system would ensure that workers in the shipping industry remain professional in discharging their duties and highly motivated. Priority must therefore be directed to the existence of a framework of compliance that is effective so as to create in the regulatory practices and instruments (Bin, 2004). Maritime conventions have played a vital role in maintaining sanity in the marine industry. States that ratify conventions in essence show their intentions of requiring that stakeholders comply with the provisions of such conventions. The ratifying state should seek to develop and maintain the capacity to monitor and administrate compliance to conventions backed by a legal code. These capacities should at least include investigation procedures in case of serious accident and seafarer death, supervision of training schools, health screening records, specification of obligations and rights of seaboard workers’ and right to access to important services. In his view, Bin (2004) states that through the enforcement of conventions, seagoing labour will draw respect from all quarters as each part involved conforms and complies with best practice. The creation of at least one tripartite advisory committee to help nations run their systems of administration in a sensitive and efficient manner would be a move in the positive direction if sanity and good practice are to be embraced in the marine industry. Such advisory committees would ultimately lead the way toward the creation of a worldwide system of regulation by providing an environment that is conducive for the rise of uniform practices and transnational codes (Banomyong, 2005). REFERENCES Alastair, C., 1989, The Times Atlas and Encyclopaedia of the Sea, Harper Collins, London Aldcroft, D. & Mort, D., 1981, “Rail transport, sea transport”, Reviews of United Kingdom Statistical Sources ,Pergamon Press, Oxford and New York, vol 14. Alderton. T., 2004, The global seafarer: living and working conditions in a globalized industry, Seafarers International Research Centre, International Labour Office. Banomyong, R., 2005, The impact of port and trade security initiatives on maritime supply-chain management Maritime Policy & Management: The flagship journal of international shipping and port research, 1464-5254, Volume 32, Issue 1, Pp3 – 13. Bin, W., 2004, Maritime Policy & Management, The flagship journal of international shipping and port research, 1464-5254, Volume 31, Issue 1, Pages 69 – 82. Bolton, V. & Bryan J., 1983, Marine transport: A guide to libraries and sources of information in Great Britain, Witherby & Co, London. Calvert J., and McConville, J., 1983, The Shipping Industry Statistical Sources, City of London Polytechnic, London. Frankel, G., 1987, The world shipping industry, Publisher Routledge, London. Johnston, B., 1991, Global workforce 2000: The new world labour market, Harvard Business Review, Volume 69, Issue 2 , Pp 115 – 127. Joint Maritime Commission & International Labour Organisation, 2001, The impact on seafarers living and working conditions of changes in the structure of the shipping industry, Report for discussion at the 29th Session of the Joint Maritime Commission, Geneva, Sectoral Activities Programme, Publisher International Labour Organization. Lane, T., 2000, The global seafarers’ labour market; problems and solutions, University of Wales, viewed 10th August, 2009 http://www.itfglobal.org/seafarers/icons-site/images/93SIRC.pdf Lillie, N., 2004, Global collective bargaining on flag of convenience shipping, British Journal of Industrial Relations, Vol. 42, No. 1, March, pp. 47-67. McConville, J. and Gleyns, R,. 1985, Shipping business and maritime economic, An Annotated International Bibliograph,y Mansell, London. Núñez, C., Harlaftis G. & Starkey D.,1998 Global markets: The internationalization of the sea transport industries since 1850, Universidad de Sevilla, Ron, T., Stutchbury, T. & Pascoe S., 1988, Sea transport, Illustrated ed., Macmillan Company of Australia. Tyner J. 2000, Global cities and circuits of global labor: The case of Manila, Philippines, The Professional Geographer, 1467-9272, Volume 52, Issue 1, Pages 61 – 74. United Nations Conference on Trade and Development (UNCTAD), 2003, Review of Maritime Transport, Annual Series, United Nations, New York. Williamson, G. ,1992, The evolution of global labour markets in the first and second world since 1830, Background evidence and hypothesis working paper, No. 36, National Bureau of Economic Research inc., Cambridge. BIBLIOGRAPHY Alastair, C., 1989, The Times Atlas and Encyclopaedia of the Sea, Harper Collins, London Aldcroft, D. & Mort, D., 1981, “Rail transport, sea transport”, Reviews of United Kingdom Statistical Sources ,Pergamon Press, Oxford and New York, vol 14. Alderton. T., 2004, The global seafarer: living and working conditions in a globalized industry, Seafarers International Research Centre, International Labour Officel Banomyong, R., 2005, The impact of port and trade security initiatives on maritime supply-chain management Maritime Policy & Management: The flagship journal of international shipping and port research, 1464-5254, Volume 32, Issue 1, Pp3 – 13. Bin, W., 2004, Maritime Policy & Management, The flagship journal of international shipping and port research, 1464-5254, Volume 31, Issue 1, Pages 69 – 82. Bolton, V. & Bryan J., 1983, Marine transport: A guide to libraries and sources of information in Great Britain, Witherby & Co, London. Calvert J., and McConville, J., 1983, The Shipping Industry Statistical Source,s City of London Polytechnic, London. Frankel, G., 1987, The world shipping industry, Publisher Routledge. Johnston, B., 1991, Global workforce 2000: The new world labour market, Harvard Business Review, Volume 69, Issue 2 , Pp 115 – 127. Joint Maritime Commission & International Labour Organisation, 2001, The impact on seafarers living and working conditions of changes in the structure of the shipping industry, Report for discussion at the 29th Session of the Joint Maritime Commission, Geneva, Sectoral Activities Programme, Publisher International Labour Organization. Lane, T., 2000, The global seafarers’ labour market; problems and solutions, University of Wales, viewed 10th August, 2009 http://www.itfglobal.org/seafarers/icons-site/images/93SIRC.pdf Lillie, N., 2004, Global collective bargaining on flag of convenience shipping, British Journal of Industrial Relations, Vol. 42, No. 1, March, pp. 47-67. McConville, J. and Gleyns, R,. 1985, Shipping business and maritime economic, An Annotated International Bibliograph,y Mansell, London. Núñez, C., Harlaftis G. & Starkey D.,1998 Global markets: The internationalization of the sea transport industries since 1850, Universidad de Sevilla, Ron, T., Stutchbury, T. & Pascoe S., 1988, Sea transport, Illustrated ed., Macmillan Company of Australia. Scientechnica, 1973, Maritime studies and management, Publisher Scientechnica Ltd., University of Virginia, USA. Tyner J. 2000, Global cities and circuits of global labor: The case of Manila, Philippines, The Professional Geographer, 1467-9272, Volume 52, Issue 1, Pages 61 – 74. United Nations Conference on Trade and Development (UNCTAD), 2003, Review of Maritime Transport Annual Series, United Nations, New York. Williamson, G. ,1992, The evolution of global labour markets in the first and second world since 1830, Background evidence and hypothesis working paper, No. 36, National Bureau of Economic Research inc., Cambridge. Read More