DIASPORA OF FILIPINO SEAFARERS: A Look at the Flag of Convenience (FOC) System Presented during the JCJ Maritime Forum Series Mariners System Manila Yacht Club Thursday, June 28, 2012 With UPDATED DATA By Evita L. Jimenez Published in UKTAW, Mariners 2011
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DIASPORAOF FILIPINO SEAFARERS:
A Look at the Flag ofConvenience (FOC) System
Presented during theJCJ Maritime Forum SeriesMariners SystemManila Yacht ClubThursday, June 28, 2012 With UPDATED DATA
By Evita L. JimenezPublished in UKTAW, Mariners 2011
Study on Seafarers• as a unique occupational group of
migrant workers who live their own
diaspora“suspended migrants” “sea-based”
with a special form of social identity
as migrant workers with no host destinationtraversing international waters throughouttheir contracted time
• as a unique occupational group ofmigrant workers who live their own
diaspora“suspended migrants” “sea-based”
with a special form of social identity
as migrant workers with no host destinationtraversing international waters throughouttheir contracted time
The 12 biggest suppliers of officers and ratings in 2010
Source: Compiled by the UNCTAD secretariat on the basis of data supplied by BIMCO in Manpower Update(2010). Ratings: deck hands, cabin cleaners, engine room oilers and cooks working aboard oil tankers, shipsand luxury cruise liners.
Country # ofofficials Marketshare Country # ofRatings Market Share
Philippines 57,688 9.2 China 90,296 12.1China 51,511 8.3 Indonesia 61.821 20.4India 46,497 7.5 Turkey 51,009 21.2Turkey 36,734 5.9 Russian 40,000 32.5Ukraine 27,172 4.4 Malaysia 28,687 36.4
The 12 biggest suppliers of officers and ratings in 2010
Source: Compiled by the UNCTAD secretariat on the basis of data supplied by BIMCO in Manpower Update(2010). Ratings: deck hands, cabin cleaners, engine room oilers and cooks working aboard oil tankers, shipsand luxury cruise liners.
Out of $16Bremittances ofOFWs,$ 7B from seafarerskeep the economyafloat
Out of $16Bremittances ofOFWs,$ 7B from seafarerskeep the economyafloat
Flag of Convenience (FOC)Flag of Convenience (FOC) Place of Work: Flag ofConvenience (FOC)
The term flag of conveniencedescribes the business practice ofregistering a merchant ship in asovereign state different from thatof the ship's owners, and flyingthat state's flag on the ship. Shipsare registered under flags ofconvenience to reduceoperating costs or avoid theregulations of the owner'scountry.
The country of registration determines the lawsunder which the ship is required to operate
The term flag of conveniencedescribes the business practice ofregistering a merchant ship in asovereign state different from thatof the ship's owners, and flyingthat state's flag on the ship. Shipsare registered under flags ofconvenience to reduceoperating costs or avoid theregulations of the owner'scountry.
The MOL Pride, owned andoperated by the Japanesecompany Mitsui O.S.K. Lines,
flying the flag of Liberia.
Many shipping companiesoperating mostly cargo vesselsand tankers that prefer the FOCsystem come from the U.S.,Japan, Norway, Denmark,Sweden, Australia, Germany,and France. They resort to FOCto avoid paying high wages andcompliance with the strict laborstandards of their own countrywhich must be enforced in theirflag vessels.
Many SHIP OWNERS register their vessels usingdummy companies from such countries as Bahamas,Barbados, Honduras, Panama, Burma, Jamaica,Liberia, and Marshall Islands.
Many shipping companiesoperating mostly cargo vesselsand tankers that prefer the FOCsystem come from the U.S.,Japan, Norway, Denmark,Sweden, Australia, Germany,and France. They resort to FOCto avoid paying high wages andcompliance with the strict laborstandards of their own countrywhich must be enforced in theirflag vessels.
Antigua and Barbuda; Bahamas; Barbados;Belize; Bermuda (UK); Bolivia; Burma (Myanmar);Cambodia (Kampuchea); Cayman Islands;Comoros; Cyprus; Equatorial Guinea; FrenchInternational Ship Register (FIS); GermanInternational Ship Register (GIS); Georgia;Gibraltar (UK); Honduras; Jamaica; Lebanon;Liberia; Malta; Marshall Islands (USA); Mauritius;Mongolia; the Netherlands; Antilles; North Korea;Panama; São Tome and Príncipe; St Vincent; SriLanka (Laos); Tonga; and Vanuatu.
32 countries being used as FOCs
Antigua and Barbuda; Bahamas; Barbados;Belize; Bermuda (UK); Bolivia; Burma (Myanmar);Cambodia (Kampuchea); Cayman Islands;Comoros; Cyprus; Equatorial Guinea; FrenchInternational Ship Register (FIS); GermanInternational Ship Register (GIS); Georgia;Gibraltar (UK); Honduras; Jamaica; Lebanon;Liberia; Malta; Marshall Islands (USA); Mauritius;Mongolia; the Netherlands; Antilles; North Korea;Panama; São Tome and Príncipe; St Vincent; SriLanka (Laos); Tonga; and Vanuatu.
Half of merchant ships:OPEN REGISTER
choice of flags allows companies to takeadvantage of another country'sinfrastructure and the efficiencies ofeffective and non-bureaucratic maritimeadministrations typically offered by theprominent open registers
Traditional reasons for choosingan open register includeprotection from income taxes,wage scales and regulations.
choice of flags allows companies to takeadvantage of another country'sinfrastructure and the efficiencies ofeffective and non-bureaucratic maritimeadministrations typically offered by theprominent open registers
Yet retain their common language,values, norms and beliefs
a common plightas workers and members of ahierarchical organizationaboard their vessels of work.
shared problems: seafarers’ rights ascontractual workers
Subject of the study: seafarersonboard FOCs or Flag of
Convenience
shared problems: seafarers’ rights ascontractual workers
Subject of the study: seafarersonboard FOCs or Flag of
Convenience
Look into how the Filipinoseafarers respond to thesystem that prevails insidethe FOC as their “communityvessels” their DIASPORA
OBJECTIVES of the STUDY:
Look into how the Filipinoseafarers respond to thesystem that prevails insidethe FOC as their “communityvessels” their DIASPORA
Find out policy interventions and/ormechanisms have been made availableby government in their homeland tomitigate problems they face in their work
A socio-cultural study
While problems need to be addressed, itis important to appreciate the situation ofFilipino seafarers:
How many and who they are, under whatconditions do they work at sea,
how they live and work onboard a shipwith other seafarers from differentnationalities and cultures, and
what problems associated with their groupculture and the system at work occur intheir daily grind as seafarers
While problems need to be addressed, itis important to appreciate the situation ofFilipino seafarers:
How many and who they are, under whatconditions do they work at sea,
how they live and work onboard a shipwith other seafarers from differentnationalities and cultures, and
what problems associated with their groupculture and the system at work occur intheir daily grind as seafarers
Filipino seafarersworking in FOCs arecompelled to adapt tothe working conditionsand system of the FOCs
Onboard ships they arepart of an over-allorganizational set-up
Seafarers’ “settlement”, theirDIASPORA
Filipino seafarersworking in FOCs arecompelled to adapt tothe working conditionsand system of the FOCs
highly mechanicalnature and characterof the organizationowned by big foreignshipping companies
looking at the Filipinoseafarers in a new light,what makes them differentfrom other OFWs even asthey are bound by thecommon pattern of diaspora
Diaspora (a scattering orsowing of seeds ordispersal/dispersion) refers toany people or ethnicpopulation forced or inducedto leave their traditionalethnic homelands, beingdispersed throughout otherparts of the world, and theensuing developments intheir dispersal and culture.
Seafarers’ Diaspora: FOCs?:
Diaspora (a scattering orsowing of seeds ordispersal/dispersion) refers toany people or ethnicpopulation forced or inducedto leave their traditionalethnic homelands, beingdispersed throughout otherparts of the world, and theensuing developments intheir dispersal and culture.
More than 1/4 of the world’s total merchantmarine fleet (about 1.2M) with 2/3 of them onboard European owned ships.
Chances of having Filipinos amongthe casualties in maritime disastersare high as what happened in the2003 SS Norway explosion, themost fatal cruise-ship accident in theUS in over a decade where 7 ofthe 8 who died were Filipinos
Chances of having Filipinos amongthe casualties in maritime disastersare high as what happened in the2003 SS Norway explosion, themost fatal cruise-ship accident in theUS in over a decade where 7 ofthe 8 who died were Filipinos
Seafarers onboard FOCs are exposedto multicultural andhierarchical structure with itsconcomitant problems
FOC system:a problem for seafarers?
Seafarers onboard FOCs are exposedto multicultural andhierarchical structure with itsconcomitant problems
whenever a seafarer is hurt orstricken ill, or dies whileperforming duties aboard the ship,real ship owners are able toescape from their responsibilities.
Schein (1992): what groupculture exists for theseafarers aboard FOCswhile working and livingtogether as a communityonboard: Pakikisama,pagtitiis, tiyaga, pasensya
Filipino seafarers beingaway for a long timefrom their homelandwork and live not onsettled communities buton board ships
STUDY uses the various concepts ofculture –political and organizational -- andtrans-nationalism
Schein (1992): what groupculture exists for theseafarers aboard FOCswhile working and livingtogether as a communityonboard: Pakikisama,pagtitiis, tiyaga, pasensya
Filipino seafarers beingaway for a long timefrom their homelandwork and live not onsettled communities buton board ships
Among studies cited: is Steven McKay’s, “At Home onthe Move: Filipino Seafarers and the Making of aTransnational Ethnic Niche,” a paper presented at the2004 annual meeting of the American SociologicalAssociation, San Francisco California.
Filipino culture plays crucial role inadapting to problems faced by seafarers
Cites the significant role of thePhilippine state and how, in itsattempt to harness the resources ofthe Diaspora, has helped constructthe Filipino seafarer as both “cheaplabor and nationalist hero.”
FINDINGS
Findings
Seafarers’ daily lifestyle – 24 hour- in theirdiaspora onboard ships generally follow ahierarchy of roles in their work places aboard ships:
The list of officers and crew in hierarchy the Captain, Chief Mate,Second Officer, Third Officer, Fourth Officer, Boat Swain, Carpenter,Able Seaman (AB), or Ordinary Seaman (OS). Furthermore,assisting the Captain are the Radio Operator, and Chief Engineer);under the Chief Mate are the Chief Steward and Chief Officer; theChief Steward has the Chief Cook, and 3 Stewards; Chief Engineerhas the Second Engineer, 3rd Engineer, and 4th Engineer; the ThirdOfficer has the Machinist, Oiler, Wiper; the Third Engineer has theElectrician. Among them, however, there are only Captains hiredwhile mostly employed are of low rank
The list of officers and crew in hierarchy the Captain, Chief Mate,Second Officer, Third Officer, Fourth Officer, Boat Swain, Carpenter,Able Seaman (AB), or Ordinary Seaman (OS). Furthermore,assisting the Captain are the Radio Operator, and Chief Engineer);under the Chief Mate are the Chief Steward and Chief Officer; theChief Steward has the Chief Cook, and 3 Stewards; Chief Engineerhas the Second Engineer, 3rd Engineer, and 4th Engineer; the ThirdOfficer has the Machinist, Oiler, Wiper; the Third Engineer has theElectrician. Among them, however, there are only Captains hiredwhile mostly employed are of low rank
most seafarersemployed onboardonly for six to ninemonths
Filipino seafarers suffer fromexorbitant fees charged bymany training schools, poorworking conditions, inadequatefood and accommodation, portrestrictions (particularly in theU.S.), sea accidents/ mishaps,lack of medical care,discrimination,piracy/abduction, and generallack of protection provided byinternational law.
contractual & temporary employment
most seafarersemployed onboardonly for six to ninemonths
There is nostandard pay scalegiven by foreignvessels hiringFilipino seafarers.
Filipino seafarers suffer fromexorbitant fees charged bymany training schools, poorworking conditions, inadequatefood and accommodation, portrestrictions (particularly in theU.S.), sea accidents/ mishaps,lack of medical care,discrimination,piracy/abduction, and generallack of protection provided byinternational law.
It is also clear that whileat sea, Philippine lawsoffer no protection andinternationalconventions governingthe seafaring industryare either ineffective orcannot be invoked by acountry (Philippines)
FOC system, Filipino seafarers have no meansof protecting themselves against unfair laborpractices, exploitation or other crimes.
It all begins the place oraddress of the seaman’sresidence. Because they arealways on board and ininternational waters, the Filipinoseafarers’ place of residenceremains their country oforigin. For instance, even if thevessel is registered to an FOClike Liberia chances are, theseaman will never even seeLiberia during his entire voyage.Their problems cannot beresolved onboard the FOC.
It is also clear that whileat sea, Philippine lawsoffer no protection andinternationalconventions governingthe seafaring industryare either ineffective orcannot be invoked by acountry (Philippines)
It all begins the place oraddress of the seaman’sresidence. Because they arealways on board and ininternational waters, the Filipinoseafarers’ place of residenceremains their country oforigin. For instance, even if thevessel is registered to an FOClike Liberia chances are, theseaman will never even seeLiberia during his entire voyage.Their problems cannot beresolved onboard the FOC.
To cope with problems onboard FOCs,Filipino seafarers manage and adapt totheir situation
Despite being globalpeople, Filipinoseafarers cannotinvoke internationallaws to protect theirrights because thereare no such laws forthem
Hence, seafarers inpractical terms, arecompelled by the natureof their contracted jobs,to adapt to their newenvironment inside theship based on theirindividual occupationswith “routine, standardresponses oftenresulting in short termsolutions.
Despite being globalpeople, Filipinoseafarers cannotinvoke internationallaws to protect theirrights because thereare no such laws forthem
Hence, seafarers inpractical terms, arecompelled by the natureof their contracted jobs,to adapt to their newenvironment inside theship based on theirindividual occupationswith “routine, standardresponses oftenresulting in short termsolutions.
Because there isno definitivepolicy and lawsgoverning theocean-goingvessels and theircrew.
Filipinos’ cultural tenacity,especially to adapt and goalong with the dominantvalues, attitudes, groupnorms and “rules of thegames” inside theorganization within theship, that make the life ofthe Filipino seafarers “lessstressful and lessintimidating
Filipino seafarers are clearly left withholding on to existing mechanisms ofadaptation and learning
Because there isno definitivepolicy and lawsgoverning theocean-goingvessels and theircrew.
Filipinos’ cultural tenacity,especially to adapt and goalong with the dominantvalues, attitudes, groupnorms and “rules of thegames” inside theorganization within theship, that make the life ofthe Filipino seafarers “lessstressful and lessintimidating
“Pakikisama” is the Filipinos’ way to adaptand get along with the others. NOT tocomplain
Oftentimes, pakikisama (go along well) iscombined with being “pasyensyoso” (patient)and “matiisin.” (work without complaint).
This was important for him because he had toshow his “best” towards his superiors whowould always pat him on his back inacknowledgment.
the best behavior and attitude that lowpayingFilipino seafarers can demonstrate is to “go along”with the dominant views in the organization
“Pakikisama” is the Filipinos’ way to adaptand get along with the others. NOT tocomplain
Oftentimes, pakikisama (go along well) iscombined with being “pasyensyoso” (patient)and “matiisin.” (work without complaint).
This was important for him because he had toshow his “best” towards his superiors whowould always pat him on his back inacknowledgment.
When FOCs do not providethe same protection for theFilipino seafarers becausethey are not kababayan tothe owners of the ships…one option is they jumpships
OR one reason why jumping ship is abetter option for some Filipino seafarers
When FOCs do not providethe same protection for theFilipino seafarers becausethey are not kababayan tothe owners of the ships…one option is they jumpships
And the need to survivedomestic poverty broughtabout by the economic failuresof every political leadershipwhose socio-political survivalironically is also badlydependent on the sameFilipino workers driven awayfrom home
The diaspora of Filipino seafarers drivenby economic necessity
And the need to survivedomestic poverty broughtabout by the economic failuresof every political leadershipwhose socio-political survivalironically is also badlydependent on the sameFilipino workers driven awayfrom home
Philippine labor lawsare generallydesigned for land-based workers
Available mechanisms put inplace by the government toaddress problems related to thesystem of the FOC have beenmainly done through the routeof the Philippine OverseasEmployment Agency (POEA),Department of Foreign Affairs,Maritime Regulatory Authority(MARINA) and non-governmentorganization (NGO) initiativesand interventions
Why do Filipino seafarers have noaccess to Philippine labor laws when onboard FOCs?
In effect, thecountry’s labor lawsand regulations aresubordinated to thedemands of theglobal maritime labormarket.
Available mechanisms put inplace by the government toaddress problems related to thesystem of the FOC have beenmainly done through the routeof the Philippine OverseasEmployment Agency (POEA),Department of Foreign Affairs,Maritime Regulatory Authority(MARINA) and non-governmentorganization (NGO) initiativesand interventions
In October 2008, the M/V African Sanderling, with 21Filipino seafarers aboard, was hijacked by rebels inSomalia.
Before that, the M/V Efximos exploded off the coast ofUnited Arab Emirates (UAE), leaving four Filipinoseamen dead. The ship was owned by Greeknationals but used the Maltese flag as its carrier.
All of these ships were flying FOCs and it had beendifficult for the families and even the organizationsadvancing the rights and welfare of the Filipinoseafarers to make the ship owners accountablebecause FOCs conceal their true identities.
Various cases involving Filipino seafarersaboard FOCs show increasing danger for thesecurity of the working crew and officers.
In October 2008, the M/V African Sanderling, with 21Filipino seafarers aboard, was hijacked by rebels inSomalia.
Before that, the M/V Efximos exploded off the coast ofUnited Arab Emirates (UAE), leaving four Filipinoseamen dead. The ship was owned by Greeknationals but used the Maltese flag as its carrier.
All of these ships were flying FOCs and it had beendifficult for the families and even the organizationsadvancing the rights and welfare of the Filipinoseafarers to make the ship owners accountablebecause FOCs conceal their true identities.
Problems related to the FOCs in particular canonly be decided on the policy level.
But the hands of the government are tied due toits weaknesses in addressing the problems of thecontinuously weakening local economy and itsdependence on foreign companies includingshipping firms to recruit its work force aboard theirFOCs.
Needed: POLICY LEVELintervention
Problems related to the FOCs in particular canonly be decided on the policy level.
But the hands of the government are tied due toits weaknesses in addressing the problems of thecontinuously weakening local economy and itsdependence on foreign companies includingshipping firms to recruit its work force aboard theirFOCs.
RECOMMENDATIONSRECOMMENDATIONSRECOMMENDATIONS
Remedial Recommendations
Executive Department: Should streamlineand systematize for efficiency, all maritime-related agencies whose functions tend toconflict and weed out redundancies
Congress: Revisit of the Labor Code with aview toward integrating or clarifying the rights ofFilipino seafarers and the obligation of the state;should also ratify other international labortreaties or conventions most especially the ILO’sMaritime Labor Convention
The Convention sets outseafarers' rights to decentconditions of work on a widerange of subjects, and aims tobe globally applicable, easilyunderstandable, readilyupdatable and uniformlyenforced. It has been designedto become a global instrumentknown as the "fourth pillar" ofthe international regulatoryregime for quality shipping,complementing the keyConventions of the InternationalMaritime Organization (IMO).
RATIFY MaritimeLabor Convention
The Convention sets outseafarers' rights to decentconditions of work on a widerange of subjects, and aims tobe globally applicable, easilyunderstandable, readilyupdatable and uniformlyenforced. It has been designedto become a global instrumentknown as the "fourth pillar" ofthe international regulatoryregime for quality shipping,complementing the keyConventions of the InternationalMaritime Organization (IMO).
ratification of the MLC would helpengender more positive laws andregulations governing the systemof ship operations and governancevis-à-vis ensuring the rights andwelfare of the seafarers, thepropelling force in the shippingindustry.
Seafarers’ groups in the Philippines have formedan alliance, the Decent Work for SeafarersAlliance to push for the ratification of the MaritimeLabor Convention (MLC) which was adopted bymember-states of the International LaborOrganization (ILO) in 2006.So far, only 10 member states namely, Canada,Norway, Spain, Croatia, Bulgaria, Bosnia, Liberia,Panama, Marshall Islands, Herzegovina andBahamas have ratified the convention while therest of the members, including the Philippines,have not. Thus, the convention has not beenenforced.
Philippines notsignatory yet … MLC
Seafarers’ groups in the Philippines have formedan alliance, the Decent Work for SeafarersAlliance to push for the ratification of the MaritimeLabor Convention (MLC) which was adopted bymember-states of the International LaborOrganization (ILO) in 2006.So far, only 10 member states namely, Canada,Norway, Spain, Croatia, Bulgaria, Bosnia, Liberia,Panama, Marshall Islands, Herzegovina andBahamas have ratified the convention while therest of the members, including the Philippines,have not. Thus, the convention has not beenenforced.
•Research. More studies should bedone with regard to the particularsituation of Filipino seafarers and theirfamilies;
•Support intervention from NGOs: Tohelp provide legal, moral, psycho-socialand other forms of intervention to victimsof injustices committed aboard FOCs;
More Recommendations
•Research. More studies should bedone with regard to the particularsituation of Filipino seafarers and theirfamilies;
•Support intervention from NGOs: Tohelp provide legal, moral, psycho-socialand other forms of intervention to victimsof injustices committed aboard FOCs;
• Revisit, Assess, Evaluate the decades’ oldlabor export policy of government to bereplaced by an emphasis on jobs-creation athome. This also entails reviewing globalizationpolicies that promote the export of cheap laborfor the global profit-driven internationalmarket;
Recommendations
• Revisit, Assess, Evaluate the decades’ oldlabor export policy of government to bereplaced by an emphasis on jobs-creation athome. This also entails reviewing globalizationpolicies that promote the export of cheap laborfor the global profit-driven internationalmarket;
•Develop a national shippingindustry which would accommodateand harness the skills and knowhowof Filipino seafarers and maritimeprofessionals toward self relianceand national development. (NB.Thesteel industry is the backbone ofshipping) #
Main Recommendation
•Develop a national shippingindustry which would accommodateand harness the skills and knowhowof Filipino seafarers and maritimeprofessionals toward self relianceand national development. (NB.Thesteel industry is the backbone ofshipping) #