Studying the MLC small print: law firm starts debate
Albert Levy, partner at Ince & Co held a seminar in London on the Maritime Labour Convention. Titled 'wrinkles in the MLC' the audience was invited to knit its brows over possible consequences, problems and opportunities implied in the legislation's small print.…
Albert Levy, partner at Ince & Co, led a seminar entitled ‘Wrinkles in the MLC’ before an audience at international law firm Ince & Co, London on Thursday 29 November.
As alluded to in the title, the talk centred on the small print in the 110-page document, ratified this August to be enforced in August 2013, and the questions it raises. The highlighting of these points braced the audience for feasible problems and opportunities that the 'fourth pillar' regulatory regime might bring.
“One of the real difficulties I see is that the seafarer has to have an opportunity to examine and seek advice on the agreement before signing. Does that mean that Jack Tarr will have a lawyer in every port?” asked Levy.
Regulation 5.1.5 was next under the microscope. This is the point that deals with complaints, with MLC stating complaint procedures should begin at the ‘lowest level possible’ with a proviso that ‘in all cases, seafarers shall have a right to complain directly to the master’. Levy pragmatically asked the audience to consider, “How do you get all those procedures set up in a yacht?”
“Who’s going to give and provide the training for people to tell or advise them on how to exercise their rights?”
When looked at it from this angle, such procedures seem likely to add to the ever-burgeoning amount of paperwork that is required aboard a superyacht.
Levy’s other ‘wrinkle’ seemed again to add to the burden of captaincy, and for the need of the industry to consider who will fulfill it.
“Will the captain deal with the HR problems all the time? Or will you effectively have an executive officer to deal with that? I’m talking about larger yachts, which have more crew than say five or six. If you’ve got 20, the master can’t be doing it all.”
Levy also pointed out a perhaps unintended consequence of the MLC, which is increased opportunity for litigation.
“If you have [MLC] certificates, port state control is not really entitled to come on board and start querying things. They can only go on board if they get some sort of complaint or they see something is wrong. Now, if they do that, they can come on board, but if they get it wrong that’s where you get the other side. They can seek compensation.”
Levy cited a possible scenario whereby if a charter yacht is wrongfully boarded, it can feasibly apply for losses incurred to damaged reputation. The MLC certificates could therefore act as major deterrents to port state control, he hypothesised, careful to add this was still very much a 'maybe':
“Port state control, if they suddenly see these two certificates, they will back off, and it will be left to the flag to check that the certificates are up to date, and flag will become more and more important.”
The extra work required by the MLC will mean a need for more skilled people in specific jobs or to carry out certain functions. This is by no means a bad thing, as it could trigger the creation of jobs, and Levy has already written to the UK’s business minister to advise the country invests in more surveyors.
One of the final bones to pick was found in the code’s allowance for temporary, or ‘interim’ maritime labour certificates (Standard A5.1.3 in the MLC code). Levy said that:
“One of the conditions [for temporary certificates] is that the yacht owner can prove that they have good procedures in place. If you are a special public vehicle (SPV), and it’s the first yacht you’ve bought, you’re not going to have any procedures in place. So you’re unlikely to be able to go commercial very quickly.”
Levy predicts a longer period for the preparation of a first time purchase if the owner wants to go commercial.
The talk was a good indicator of what we can expect to see more of: in simple terms the convention will ad to the volume of paperwork, from the initial inspections of vessels to check compliance, to the 'HR' issues that arise during its operation. The answers to Levy's questions will become more apparent as the convention's implementation draws nearer.
Related Links
To download the full MLC text go here
Ince & Co Profile | Ince & Co Website
As alluded to in the title, the talk centred on the small print in the 110-page document, ratified this August to be enforced in August 2013, and the questions it raises. The highlighting of these points braced the audience for feasible problems and opportunities that the 'fourth pillar' regulatory regime might bring.
“One of the real difficulties I see is that the seafarer has to have an opportunity to examine and seek advice on the agreement before signing. Does that mean that Jack Tarr will have a lawyer in every port?” asked Levy.
Regulation 5.1.5 was next under the microscope. This is the point that deals with complaints, with MLC stating complaint procedures should begin at the ‘lowest level possible’ with a proviso that ‘in all cases, seafarers shall have a right to complain directly to the master’. Levy pragmatically asked the audience to consider, “How do you get all those procedures set up in a yacht?”
“Who’s going to give and provide the training for people to tell or advise them on how to exercise their rights?”
When looked at it from this angle, such procedures seem likely to add to the ever-burgeoning amount of paperwork that is required aboard a superyacht.
“Will the captain deal with the HR problems all the time? Or will you effectively have an executive officer to deal with that? I’m talking about larger yachts, which have more crew than say five or six. If you’ve got 20, the master can’t be doing it all.”
Levy also pointed out a perhaps unintended consequence of the MLC, which is increased opportunity for litigation.
“If you have [MLC] certificates, port state control is not really entitled to come on board and start querying things. They can only go on board if they get some sort of complaint or they see something is wrong. Now, if they do that, they can come on board, but if they get it wrong that’s where you get the other side. They can seek compensation.”
Levy cited a possible scenario whereby if a charter yacht is wrongfully boarded, it can feasibly apply for losses incurred to damaged reputation. The MLC certificates could therefore act as major deterrents to port state control, he hypothesised, careful to add this was still very much a 'maybe':
“Port state control, if they suddenly see these two certificates, they will back off, and it will be left to the flag to check that the certificates are up to date, and flag will become more and more important.”
Albert Levy, partner at Ince & Co and chairman of Superyacht UK
The extra work required by the MLC will mean a need for more skilled people in specific jobs or to carry out certain functions. This is by no means a bad thing, as it could trigger the creation of jobs, and Levy has already written to the UK’s business minister to advise the country invests in more surveyors.
One of the final bones to pick was found in the code’s allowance for temporary, or ‘interim’ maritime labour certificates (Standard A5.1.3 in the MLC code). Levy said that:
“One of the conditions [for temporary certificates] is that the yacht owner can prove that they have good procedures in place. If you are a special public vehicle (SPV), and it’s the first yacht you’ve bought, you’re not going to have any procedures in place. So you’re unlikely to be able to go commercial very quickly.”
Levy predicts a longer period for the preparation of a first time purchase if the owner wants to go commercial.
The talk was a good indicator of what we can expect to see more of: in simple terms the convention will ad to the volume of paperwork, from the initial inspections of vessels to check compliance, to the 'HR' issues that arise during its operation. The answers to Levy's questions will become more apparent as the convention's implementation draws nearer.
Related Links
To download the full MLC text go here
Ince & Co Profile | Ince & Co Website
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