Opinion of the Economic and Social Committee on the "Communication from the Commission to the Council and the European Parliament on the training and recruitment of seafarers"

(2002/C 80/03)

On 19 April 2001 the European Commission decided to consult the Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 18 December 2001. The rapporteur was Mr Chagas.

At its 387th plenary session of 16 and 17 January 2002 (meeting of 16 January) the Economic and Social Committee adopted the following opinion by 94 votes in favour and two abstentions.

1. Introduction

1.1. The industry, the Member States and the Commission have already addressed the issue of the declining number of EU seafarers and the shortage of well-qualified seafarers on several occasions, and have agreed on the need to identify measures to tackle the problem. In 1996 the Commission presented an analysis in its Communication "Towards a new maritime strategy"(1). In its Resolution of 24 March 1997 on a new strategy to increase the competitiveness of Community shipping(2), the Council of Ministers of the European Union endorsed the Commission's Communication and inter alia recognised that positive measures were needed to foster the employment of Community seafarers.

1.2. Shipping is a vital activity for the EU with 90 % of the Union's external trade and over 35 % of its internal trade relying on maritime transport. In oil transport the importance of maritime transport from an environmental and strategic point of view is even starker - 80 % of the Communities' oil requirements are imported and almost entirely by sea. EU interests also control approximately one third of the world merchant fleet. Maritime transport markets are regarded as long-term growth markets. The EU therefore has a vital economic interest in maintaining and extending maritime transport markets and ensuring that it has an efficient and competitive maritime transport industry and that it exerts influence on international shipping policy. To this end, the EU must have its own maritime shipping industry and it must retain maritime expertise. It is therefore absolutely essential to have EU seafarers employed both onboard ships and in land-based enterprises connected with shipping.

1.3. The current shortage of EU officers is estimated to be 13000 rising to 36000 by 2006. Over 60 % of EU officers are over the age of 40 years. The total number of EU seafarers employed on EU registered vessels fell from 1985 to the present days by 40 % to 120000, in contrast from 1983 non-EU seafarers on the same ships increased by 19 % to 34500. This is contrasted with continued investment by EU shipowners in shipping and the commensurate growth of EU controlled vessels registered under third countries' flags.

1.4. The Communication is therefore welcomed and its tone is positive and encouraging. It will have a positive impact if Member States waste no time in examining and taking up the Commission's proposals and the social partners in the EU maritime shipping industry focus on implementing the Commission's proposals on which consensus has already been reached, and on finding appropriate solutions to areas identified within the communication where they are still needed.

2. Summary of the Commission's Communication

2.1. The European Commission wishes to provide an update on the decline in the number of EU seafarers and an analysis of the reasons behind it, the possible implications for the EU shipping community and the measures necessary to reverse it.

2.2. The Commission notes that the extent of the problems varies from Member State to Member State and that in some Member States only a few isolated measures have been taken to eradicate this phenomenon. The Commission therefore proposes a number of recommendations to stabilise and increase the employment and training of seafarers and to improve their living and working and employment conditions, in particular:

- correct application of Community and international legislation concerning the living and working conditions of seafarers and the quality of operations onboard ships;

- the full use of available options in the 1997 EU State Aid Guidelines;

- a discussion between social partners with a view to concluding voluntary agreements on the employment conditions of non-Community sailors on board EU vessels;

- awareness campaigns to "enhance the image of maritime transport" and better information for potential students. These campaigns may also provide a good opportunity for promoting and facilitating access by women to maritime professions;

- improvements in the living conditions of seafarers, mainly by organising better rotation of activities at sea and on land;

- improved Community training systems (guaranteeing a sufficient number of places for officer training on board ship);

- the use of existing Community instruments to support maritime training (European Social Fund, Structural Funds, Socrates, Leonardo da Vinci, Equal, etc.);

- the sponsoring of research projects on such problems, in the context of the future sixth framework programme;

- supporting initiatives to increase contact between seafarers and families ashore through internet services, etc.

3. General comments

3.1. The Commission acknowledges that, whilst the available research points to a statistical surplus of ratings, strong reservations are held as to whether it can be concluded that the situation within the EU is therefore satisfactory. The value added on the recruitment and training of EU seafarers is important and many ratings in the international labour market making up the surplus may well lack the qualifications required under IMO STCW Convention(3) once it is properly enforced. Recent research provides evidence that there is a worrying problem of fraudulent certification, in particular amongst ratings, in the international labour market casting doubt over the validity of their certification. In addition, many ratings from non-EU countries are unavailable to offset any shortage of EU ratings from the labour markets because of cultural differences, language problems and employment restrictions. Greater consideration needs to be given to the issue of recruitment and training of ratings within the EU.

3.2. The key problem, which the Commission acknowledges, is that of unfair competition. There is a need to ensure that EU registered vessels can compete with flags of convenience and substandard shipping whilst maintaining and developing the maximum compliance with EU standards and EU crewing. It is therefore important that Member States make full use of the Commission's Guidelines on State Aid to Maritime Transport. This is one way to ensure that EU registered vessels can compete with flags of convenience and substandard shipping.

3.3. The Commission proposes further extension of the information held on EQUASIS. Currently information on social standards is provided by the International Transport Workers Federation (ITF) but only in respect of flag of convenience and some Second/International Register vessels. The provision of similar information into that data base for EU flag ships must be addressed and the Committee therefore supports the extension of EQUASIS to include information on social conditions on EU flag vessels.

3.4. The Commission should investigate whether the employment of EU seafarers could, in the long term, bring about higher safety standards and environmental standards onboard EU vessels, thereby giving rise to economic benefits, e.g. in respect of the insurance markets.

3.5. The Commission should investigate and evaluate, and if necessary, conduct research into the economics of the intra EU-shipping sector to determine the relationship between freight rates and levels of EU seafarer employment. Existing studies might be a starting point.

3.6. Much of the Community's response to the problems of the shipping industry has been supply-side focused, aimed at maintaining the attractiveness of EU seafarers to EU shipowners. Arguably, the time has come for more determined demand-side measures aimed at securing an environment in which EU seafarers are not undercut in the market by cheaper options from outside the Community. It is not considered to be a sustainable position to maintain that EU seafarers can remain competitive when access to the intra-European trades is on the basis of the lowest possible social standards and therefore based on unfair competition. Efforts are needed to complement the internationally agreed standards of maritime safety and pollution prevention with equally tough social standards covering working and living conditions onboard ships in EU waters.

3.7. The Joint Maritime Commission of the ILO recently adopted the "Geneva Accord" which paves the way for the development of a Seafarers' Bill of Rights which will seek to replace and update the plethora of ILO Maritime Conventions and Recommendations. It is considered essential that EU input should ensure the highest possible standards are provided for in the eventual instrument and ensure that it receives the widest possible ratification and then proper enforcement.

3.8. The Commission makes a great deal of the notion that the shipping industry is failing to attract young people. It is suggested that the picture is not a universal one as many countries in the EU have no shortage of candidates, just a shortage of opportunities. The Committee therefore believes it is not a safe assumption that the seagoing career is universally unattractive to EU citizens. The Committee does however feel that greater use could be made of the EU State Aid Guidelines to support initiatives designed to promote a career at sea and to offer long-term employment opportunities to young people.

3.9. Strategies to address the problems of decline of EU seafarers need to focus on their value over third-country nationals. One significant value must be value added derived from EU seafarers, including maintenance of the maritime clusters within Member States.

3.10. There is a serious danger that the impact of cheaper crews on the levels of remuneration of EU seafarers will undermine strategies to revive the EU maritime skills base. It is therefore essential that actions be taken to ensure continued opportunities for trained EU seafarers. Social dumping should not be accepted. This may best be achieved by not only making adjustments on the employment costs of EU seafarers, but also establishing EU acceptable working conditions for non-EU seafarers particularly in the context of EU enlargement.

3.11. It would be most beneficial for some research to be carried out on the impact of differing social costs in the regional ferry sector. By way of an example the Irish Sea may be a useful regional area for initial study to understand the competitive forces at play and the impact of different social costs. Out of a total of some 50 scheduled passenger and ferry vessels trading between Great Britain, Northern Ireland and the Republic of Ireland there are 29 flag of convenience vessels employing Filipino, Polish and Spanish ratings at rates of pay significantly below those payable to British and Irish seafarers on similar vessels on the same trades. Recently one Bermudan registered vessel replaced its British officers with Spanish officers claiming savings in the region of US$ 300000-250000 per annum. An Estonian registered vessel has also joined the trade. The future looks very bleak for the remaining British and Irish seafarers plying the Irish Sea. Other examples could also be usefully examined including the Baltic Sea.

3.12. The continued influx of cheaper crews is arguably here to stay. Measures must be taken to ensure the impact on EU seafarer wage levels is not to force them down making a seagoing career even more unattractive. It is considered essential that employment costs in respect of EU seafarers on EU vessels should be adjusted in such a way as to ensure that jobs onboard these vessels remain competitive in international markets.

3.13. The liberalisation of cabotage restrictions has done little to improve the competitiveness of the EU fleet. A refocus on the underlying objectives of this liberalisation needs to take place to establish whether the EU maritime skills base has been enhanced or damaged by the liberalisation. It is noted by the Committee that the Fourth Report on Cabotage is currently being prepared by the Commission and will include a section on the impact on employment of EU seafarers.

3.14. In the revised State Aid Guidelines from 1997 the Commission stated (Chapter 1.4.) that "the objectives of promoting a safe and competitive Community fleet with the employment of the highest possible number of Community seafarers" remained valid. In particular (Chapter 2.2.), these measures should:

- safeguard EC employment, (both on board and on shore);

- preserve maritime know-how in the Community and develop maritime skills; and

- improve safety.

3.15. In some Member States the use of measures within the EU State Aid Guidelines has helped to improve the competitiveness of EU ships. However there are sectors where the measures within the State Aid Guidelines arguably act against the interests of the employment of EU seafarers, such as in Lifeline Ferry Services(4), the acceptance of non-EU nationals on EU registered ships as European Seafarers, and the lack of recognition of onboard training of seafarers. The Committee therefore believes that as a consequence the EU State Aid Guidelines need to be reviewed. Such a review should include the full involvement of the social partners.

3.16. There is concern that international conventions covering social and employment matters are not being fully applied in Member States and the Commission should verify the situation. Some EU Member States have ratified all of the ILO Maritime Conventions and some have not, and some EU Member States pick and choose aspects of ILO obligations to adhere to. It is considered important that a uniform approach to the implementation of ILO maritime instruments should be required.

3.17. The Communication makes some worthwhile proposals to tackle the problem of abandoned ships, proposals which merit further consideration specifically in the light of the work undertaken by the Joint IMO/ILO Ad Hoc Expert Working Group on Liability and Compensation regarding Claims for Death, Personal Injury and Abandonment of Seafarers. It is interesting though that in this context the Commission wishes to ensure that "seafarers on Community ships enjoy at least the same protection as other Community workers"; yet seafarers are often excluded by Member States from employment protection measures provided for other workers e.g. the posted workers directive, the transfer of undertakings' directive and the directive dealing with collective redundancies legislation.

3.18. The Commission recommendations that Member States make better use of European Social and Structural Funds in the areas of maritime training is welcomed. The Social Partners should explore the possibilities of taking advantage of the Equal, Socrates and Leonardo programmes but concern exists that the complicated process of establishing projects and their restricted scope has been a limiting factor in the past. As an example, the obligation for projects to have a trans-national nature is seen as an unnecessary obstacle, as it is much easier to define a training project according to the actual needs and the situation you are familiar with.

3.19. The Commission also proposes that efforts should be made to promote the employment of women. This is considered to be a positive proposal, particularly when taken together with suggestions that attention should be paid to making a seagoing career more family friendly. It is essential that the EU social partners address this issue and that of equal opportunities issues in general. Special note needs to be made of recent Community legislation in respect of gender equality and proposed action on sexual harassment in the workplace(5).

3.20. The Commission has identified several key players, namely the social partners and in particular EU shipowners, the public authorities and maritime academics. Jointly these players must in the Commission's view find a rapid solution to the shortage of EU seafarers.

3.21. For shipowners the Commission believes the key is training of EU seafarers and contributing to a re-launch of the image of shipping. For academics their role is maintaining the highest possible standards of training and contributing to the re-launch of the image of shipping and in this regard the Committee proposes that academic institutions consider establishing networks to foster best practice initiatives. And for the Member States' public authorities it is providing all possible support to shipowners by reducing cost disadvantages linked to the employment of EU seafarers.

3.22. The Commission has correctly identified that these various interests must work together to find a solution and in emphasising the proposal for the so-called Manning Directive(6) the Commission has identified the fundamental problem of competition from non-EU vessels employing cheaper non-EU seafarers. The proposed directive seeks to establish the principle that social and working conditions on intra-European passenger and ferry services should be linked to those prevailing in the countries between which the vessels trade. The Commission believes this would establish a level playing field and prevent social dumping. In doing so this would protect one of the last remaining sectors where EU seafarers retain a strong foothold. They also maintain that this would encourage increased training. The Committee notes that the Maritime Unions have indicated support for the directive and a willingness to take-up the proposal of the Commission to an agreement on the fundamental issues involved. ECSA maintain complete opposition to the proposed directive as they have done since its inception because it might undermine the right of the flag state to be responsible for labour conditions on ships under its register and would, they argue, result in similar protective measures by third countries with possible adverse consequences for EU seafarers employed on the international market. ECOSOC has previously offered an opinion on the proposed Manning Directive and the Committee notes that this is still relevant today(7).

3.23. In that Opinion, the Committee stated that it "agrees with the Commission's objectives in submitting this draft directive and feels that any such Community provision should take account of and respond to the concerns expressed above regarding employment and labour; the economic aspects; and the legal compatibility of the proposal with other legal instruments and its repercussions upon the international context in which the Community shipping industry operates."

3.24. The Committee notes that the proposed directive has been the subject of close scrutiny and confirmed by Commission services as being in compliance with all existing European and international legislation etc. and in dealing with intra-European trades, is an internal market measure removing it from concerns over external open market-based reactions.

3.25. The Commission states that it intends continuing discussions on the Manning Directive at the level of the Transport Council and the European Parliament but proposes that the social partners work in parallel and seek an agreement on this fundamental question. The Committee urges the social partners to take up this challenge.

3.26. The Committee believes that a wider framework of social protection is required for EU shipping that seeks to ensure that competition is on the basis of highest possible standards in safety, environment AND social standards, thereby ensuring a level playing field for all those wishing to participate in carrying goods by sea between EU ports.

3.27. The Committee also believes that there should be a tightening of Port State Control within the Paris Memorandum countries to include punitive fines for violations and deficiencies, thereby reducing the inherent incentive for some who operate substandard vessels (the OECD studies) and PSC inspectors to include inspection of social and employment conditions. The Commission should propose the minimum social conditions acceptable within the EU.

4. Conclusions and recommendations

4.1. The Committee believes that it is important that all those to whom the Commission Communication on the training and recruitment of seafarers is addressed should take careful note of its recommendations. In particular the Committee believes that:

- The Member States should fully apply the EU Commission's guidelines on State aid to maritime transport.

- The Member States must bring about improvements in onboard living and working conditions by ratifying and enforcing relevant international standards such as those adopted by the ILO. Observance of such standards should be ensured via Port State Control utilising punitive fines to punish those who refuse to abide by the international agreed standards.

- The Member States and the social partners should work together in examining how better use can be made of the existing EU aid measures such as the European Social Fund, Socrates, Leonardo and Equal to promote basic and further training. The Commission should however be prepared to consider making adjustments to the funding requirements to ensure that they are fully utilised and that no unnecessary requirements are being imposed.

- The social partners (ECSA and ETF) should seek a voluntary agreement to give effect to the concepts embodied in the Proposed Directive on the Manning of Scheduled Passenger and Ferry Services in the EU.

- Member States and social partners should organise and coordinate national and EU level awareness campaigns to re-launch the image of the shipping industry with a view to highlighting the attractiveness of careers in the maritime industry, reducing trainee drop-out rates and promoting and facilitating the employment of women.

- The social partners should take appropriate action to boost the social prestige and job satisfaction of the seafaring professions (i.e. improvements to officers' wages and more convenient rotation times for seafarers).

- All those involved in the maritime industry should work together to ensure that Members States' maritime education and training systems continue to meet all the requirements of the regulatory framework, of modern technology and the global shipping industry.

- Member States and the social partners should implement urgent measures to ensure sufficient numbers of study places are available for training cadets, provide EU seafarers with continuous updating and/or upgrading courses and increase the mobility of EU seafarers.

- Member States and social partners should explore the possibility of maximising the use of Community instruments to provide financial support for maritime training; and

- the social partners should take advantage of the Sixth Framework Programme and bring forward areas of useful research into the present shortfall of EU seafarers.

4.2. It is significant that the Commission does not believe there is a need for further legislative initiatives on employment issues but rather that the answer lies in utilising correctly the relevant Community instruments to reverse the decline in employment of EU seafarers.

4.3. This is arguably a clear signal to Member States that unless the social partners can reach unanimity on the question of the proposed manning directive there will be no further support for the industry beyond what is already in place. The Social Partners must heed this warning.

4.4. The key question to be addressed by the Member States therefore is whether there is a genuine commitment on the part of EU shipowners - the key player so far as the Commission is concerned - to train and employ EU seafarers.

4.5. The Social Partners (ECSA and ETF) should lose no time adopting those measures in respect of which consensus has been reached for example by working together to promote careers at sea. However, if such work is not to be completely meaningless then action by the social partners is also needed on issues where consensus to date has been evaded i.e. measures to underpin the employment of EU seafarers.

Brussels, 16 January 2002.

The President

of the Economic and Social Committee

Göke Frerichs

(1) COM(96) 81 final - ESC Opinion: OJ C 56, 24.2.1997, p. 9.

(2) Council Resolution of 24 March 1997 on a new strategy to increase the competitiveness of Community shipping OJ C 109, 8.4.1997, p. 1.

(3) International Convention on Standards of Training, Certification and Watchkeeping.

(4) Domestic ferry services essential for the economic well being of outlying communities.

(5) COM(2000) 334 final.

(6) Proposal for a Council Directive on manning conditions for regular passenger and ferry services operating between Member States COM(98) 251 final - SYN 98/0159 (OJ C 213, 9.7.1998, p. 17) - ESC Opinion: OJ C 40, 15.2.1999, p. 3.

(7) ESC Opinion: OJ C 40, 15.2.1999.