DCN May Edition 2019

INDUSTRY OPINION
A maritime vision
Aspirations to revive Australian-flagged shipping need to be
married with commercial reality, writes Llew Russell
THE LEADER OF THE OPPOSITION,
include obligations to pay wages, for
Bill Shorten has committed Labor to
example, in accordance with employment
“making Australia a seafaring nation
contracts, which normally are those
again”. The statement made in late
recommended by the International
February was short on detail. Reference
Transport Federation. There are about
was made to building a national strategic
1,650,000 seafarers in the world engaged
reserve with many more Australian ships.
in international shipping and the majority
A little more detail was contained in the
of ratings come from the Philippines being
Maritime Union of Australia news release
just over 20%. In terms of all ranks, China
of 11 March. The union welcomed Labor’s
takes the lead, then comes the Philippines,
commitment to creating a government-
Indonesia, Russia, Ukraine and India and
owned national fuel reserve to meet
then many nationalities of much smaller
Australia’s obligation of 90-day fuel stocks
percentages.
in accordance with International Energy
The 2015 BIMCO/ICS manpower report
Agency requirements as well as creating a
found there was a shortage of 16,500
national strategic fleet that will include oil
officers worldwide but an oversupply of
tankers and gas carriers.
117,000 ratings. This trend was expected to
continue into the future.
DEFENCE OUTLOOK
The International Collective
Llew Russell, AM
There is no mention in these statements
Bargaining Agreement between employee
as to how such policies would fit within
(the International Transport Workers
four ro-ro vessels in Adelaide capable of
our current defence strategic outlook.
Federation) and employer representatives
carrying around 1200 TEU. Such vessels
History tells us that in regional conflicts
for 2019-2020 sets out the recommended
would have flexibility to service countries
there have been no problems with
minimum wages. These include US$1602
in a civil emergency, for example, without
requisitioning foreign-flagged vessels to
per month in total for an able seaman
fully established port infrastructure. There
maintain supply to our forces. During
and US$6536 per month for a master.
could be extra accommodation for cadet
the East Timor conflict, for example, the
While low by Australian standards, to put
sea training and for naval officers to obtain
significant majority of vessels chartered
these wages in perspective, a doctor in the
experience in cargo handling. Decks also
by the Commonwealth to deliver supplies
Philippines would earn a similar wage to an
could be strengthened to accommodate
to Dili harbour were foreign-flagged. The
able seaman under this agreement. Nearly
tanks etc. The vessels could be employed
issue goes deeper, even leaving aside the
all of the seafarers from the Philippines
in a clockwise rotation on the Australian
potential drain on the public purse. If our
send most of their wages to their families.
coast giving a fortnightly frequency and
fuel supplies were put at risk by major
avoiding the difficult west to east leg across
economic or geopolitical disruptions how
FLESH ON THE BONES
the Great Australian Bight with its minimal
would Australian-flagged vessels escape the
I recall meeting with a group of
demand for full containers.
obvious forces impacting foreign-flagged
young naval officers on an industrial
An important aspect would be the
tankers in terms of continued supply?
familiarisation course many years ago when
content of a binding agreement between
we discussed the decline of the Australian
the government and a commercial shipping
LABOUR CONDITIONS
flag and what could be done to remedy
operator, selected by open tender. The
The subject of labour conditions was briefly
the situation. An officer came up with an
shipping company would be expected to
raised during a debate on an episode of
idea that the government build vessels for
insure, maintain and meet all operating
the ABC series The Drum in March, when
the Australian coastal trades that could
expenses while the vessels are under their
a journalist from The Guardian stated that
be operated by a commercial shipping
control. All the crew would be Australians.
foreign seafarers were “paid a pittance” and
company but with built-in design elements
The service should be very competitive,
this justified more Australian seafarers in
to meet defence requirements; and could be
given there would be no need to cover
international trades. This is incorrect in
requisitioned by the Commonwealth, with
capital or leasing costs. This is just one
nearly all cases and especially on vessels
notice, to meet emergencies.
idea but a failure to link Labor’s maritime
visiting Australia as the government
Putting some flesh on those bones, it is
aspirations with commercial viability, trade
takes seriously its obligations under the
recommended the government commission
facilitation and providing real value for the
ILO Maritime Labour Convention. These
a feasibility study into, say, building
taxpayer, will be unsustainable.
SAL
24 May 2019
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