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CROSS-BORDER SOCIAL DIALOGUE AND AGREEMENTS: An ...

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The ILO Maritime Labour Convention, 2006 – Lillie<br />

attention from PSC (Lillie, 2006, pp. 89-104). Labour supply States are<br />

less directly involved in enforcement of the MLC. However, they are<br />

expected to enforce the requirements of the MLC on labour-recruitment<br />

agencies operating in their territory, which mainly relate to ensuring that<br />

the costs of using recruitment agencies are borne by the shipowner, and<br />

not the seafarer.<br />

Labour market competition<br />

The interests of labour market actors in the MLC negotiations were<br />

conditioned by the extreme globalization of the labour market that<br />

occurred under the FOC system. The seafarers’ group interests were<br />

firmly embedded in the ITF’s strategy of global maritime labour market<br />

control. Likewise within the shipowners’ group, both the conciliatory and<br />

hard-line interest groupings reflected different views on how to best deal<br />

with the ITF’s bargaining strategy. Both seafarers’ and shipowners’ group<br />

interests were therefore influenced by global maritime labour market<br />

conditions, and the manner in which the seafaring labour market has<br />

globalized.<br />

Although not all ships competing in international trade are under<br />

FOCs, the competitive dynamic of the industry is defined by the FOC<br />

institution. This rose to significance after World War II, and has become<br />

particularly prevalent since the 1970s (Northup and Rowan, 1983). Since<br />

FOCs do not generally have nationality-based hiring restrictions, multinational<br />

ship crews are now the norm, and a global institutional infrastructure<br />

has developed to hire ship crews from low-wage seafaring<br />

labour-supply countries for work anywhere in the world (Alderton et al.,<br />

2004). The freedom to hire from anywhere has allowed maritime labour<br />

sourcing to shift geographically, searching for suitable labour at the lowest<br />

possible cost. Just after World War II, FOC crews were drawn from many<br />

diverse countries, including those in northern Europe. By the 1970s,<br />

northern Europeans had become too expensive, and sourcing shifted to<br />

southern Europe, the Republic of Korea, and Africa. Through the 1970s<br />

and 1980s, Filipinos began to displace other groups, in part as a result of<br />

the Philippine Government’s policy of encouraging the export of cheap<br />

labour for foreign exchange (CIIR, 1987). With the opening of the eastern<br />

bloc, the Russian Federation and other post-Communist countries<br />

challenged the primacy of the Philippines and India (which has always<br />

been a major seafaring labour supplier) by flooding the market with<br />

highly trained seafarers (Johnsson, 1996).<br />

201

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