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The MLC is COMING – are you READY FOR IT?

The MLC is COMING – are you READY FOR IT?. DNV MLC 2006 Road Show 2010 . Georg Smefjell. Why act now on the MLC 2006. Giles Heimann, Secretary General of the International Maritime Employers' Committee who in January 2010 said:.

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The MLC is COMING – are you READY FOR IT?

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  1. The MLC is COMING – are you READY FOR IT? DNV MLC 2006 Road Show 2010 Georg Smefjell

  2. Why act now on the MLC 2006 Giles Heimann, Secretary General of the International Maritime Employers' Committee who in January 2010 said: "An issue that seems to have taken on a slightly secondary role at a time when shipping is already facing phenomenal challenges, the MLC mandation has been compared to a ‘train speeding down the track towards us’, and that if the industry does not act right now, there will be major consequences… The MLC is without doubt one of the most significant pieces of maritime labour legislation to hit the industry for as long as we can remember. Implementation is rapidly approaching, and I honestly believe we will be looking at implementation of the MLC during 2011. “Both for ship owners and managers, there are major consequences for the MLC being implemented, and there are requirements that they’ll need to have in place…"

  3. The challenges of MLC 2006 ILO: With the 10 ratifying countries, 20.000 ships need a certificate. About 40.000 ships need certificate upon entry into force Knowing the requirements of the Convention Developing effective measures/procedures for ongoing compliance (Cf. The Declaration of Maritime Labour Compliance) Implementing the measures/procedures on board Time is running out, but it may still be a friend when it comes to finding effective solutions The longer we wait time will be an enemy in finding effective solutions We recommend customers start as soon as possible with training for key personnel and a Gap Analysis on existing procedures vs. the Maritime Labour Convention in order tounderstand and handle challenges

  4. You can impact solutionsDocuments Responsible MLC 2006 Governments, Shipowner and Seafarer org. Ratification Government DMLC Part I (National laws and regulations) Government DMLC Part II (Company’s procedures) Shipowner Maritime Labour Certificate (MLC) Shipowner & Master Inspections & Certification Flag or RO

  5. MLC information Background, status, scope, requirements, challenges and solutions

  6. Background The Maritime Labour Convention (MLC 2006) was adopted by ILO in February 2006 • Tripartite consultation (from 2001) • DNV participation from 2004 • DNV Staff (recruited after adoption) in key positions in ILO for the development of the MLC (from 2001 through 2006) • ILC 2006 participation from 106 Countries  318 delegates  No votes against and only 4 abstentions ILO GOVERNMENT EMPLOYER EMPLOYEE Slide 6

  7. The Maritime Labour Convention 2006 Safety at sea and for seafarers MLC 2006 STCW MARPOL SOLAS MLC 2006 asthe4thpillarintheinternationalmaritimeregulation

  8. MLC 2006 the rationale behind it • Updating and consolidating existing ILO Maritime Conventions • Recruit, develop, retain and motivate qualified workers in the maritime industry • Preventing poor working and living conditions being an advantage • Creating a level playing field “MLC 2006 provides comprehensive rights and protection at work for the world's more than 1.2 million seafarers”. http://www.ilo.org/public/english/standards/norm/mlc2006/

  9. Entry into Force & Status Entry into force one year after ratification by at least: • 30 ILO member states, and • 33 % of world tonnage • Status today • ILO work and coordination • PMoU requirements for PSC

  10. MLC Status • Ratifications: • Liberia • Marshall Islands • Bahamas • Panama • Norway • Bosnia and Herzegovina • Spain • Croatia • Bulgaria • Canada • Saint Vincent & the Grenadinens • EU coordination & work • ILO: 24 non-EU countries able to ratify by 26th February 2011 Estimated entry into force 2012

  11. MLC 2006 implementation process 2006 End 2010 End 2011 ? End 2012 ? Feb. 2006 MLC 2006 adopted After 1 year MLC 2006 enter into force 11 countries ratified, with more than 33% of the world tonnage Per ?? 30 countries ratified, with more than 33% of the world tonnage Ships 500 GT and above from “MLC countries” or trading in “MLC ports” need MLC and DMLC

  12. Scope The Convention applies to all • Shipswhether publicly or privately owned, ordinarily engaged in commercial activities, except … • ships engaged in fishing or in similar pursuits • ships of traditional build such as dhows and junks • warships or naval auxiliaries No tonnage threshold, but the Flag may, after consultation, decide that at the present time certain details of the Code shall not apply to ships of less than 200 gross tons in domestic trade “Ship” means a ship other than one which navigates exclusively in inland waters or waters within, or closely adjacent to, sheltered waters or areas where port regulations apply

  13. New certification requirement for: Ships in commercial activities of • 500 gross tonnage or over, engaged in international voyages and • 500 gross tonnage or over, flying the flag of a country and operating from a port, or between ports, in another country Shipowners operating other ships have the right to request certification All ships within the scope of the Convention, not covered by the certification requirement, need to be inspected at least every third year

  14. Scope The Convention applies to all • Seafarers “Seafarer” means any person who is employed or engaged or works in any capacity on board a ship to which the Convention applies (Cf also the Resolution no 7 concerning information on occupational groups)

  15. Scope Role of the Competent Authority In the event of doubt as to whether: • any categories of persons are to be regarded as seafarers • the Convention applies to a ship or particular category of ships the question shall be determined by the competent authority in the Flag State after consultation with the shipowners’ and seafarers’ organizations concerned

  16. MLC Scope Responsibility • Shipowner means the owner of the ship or another organization or person, such as the manager, agent or bareboat charterer, who has assumed the responsibility for the operation of the ship from the owner and who, on assuming such responsibility, has agreed to take over the duties and responsibilities imposed on shipowners

  17. MLC 2006 – Content Minimum requirements for seafarers to work on a ship • Minimum age • Medical certificate • Training and qualifications • Recruitment and placement

  18. MLC 2006 – Content 2. Conditions of employment • Seafarers’ employment agreements • Wages [no minimum wage set in the Convention] • Hours of work and hours of rest • Entitlement to leave • Repatriation • Seafarer compensation for the ship’s loss or foundering • Manning levels • Career and skill development and opportunities for seafarers’ employment 06 August 2014

  19. MLC 2006 – Content 3. Accommodation, recreational facilities, food and catering • Accommodation and recreational facilities • Food and catering 06 August 2014

  20. MLC 2006 – Content 4. Health protection, medical care, welfare and social security protection • Medical care on board ship and ashore • Shipowners’ liability • Health and safety protection and accident prevention • Access to shore-based welfare facilities • Social security Slide 20

  21. Certification The working and living conditions that must be inspected and approved before certifying a ship : • Minimum age • Medical certification • Qualifications of seafarers • Use of any licensed or certified or regulated private recruitment and placement service • Hours of work or rest • Manning levels for the ship • Accommodation • On-board recreational facilities • Food and catering • Health and safety and accident prevention • On-board medical care • On-board complaint procedures • Payment of wages • Seafarers’ employment agreements (with more requirements) Requirements related to ship construction and equipment apply only to ships constructed on or after the date MLC 2006 comes into force. Construction date = when its keel is laid

  22. Declaration of Maritime Labour Compliance (DMLC) One document with Two parts: DMLC Part I, drawn up by the competent authority in the Flag State, shall: • list matters to be inspected • identify the national requirements, with a reference to the relevant national legal provisions • refer to ship-type specific requirements • record any substantially equivalent provisions adopted and • clearly indicate any exemption granted

  23. Declaration of Maritime Labour Compliance (DMLC) The DMLCPart II, drawn up by the shipowner, shall Identify: • the measures adopted to ensure ongoing compliance with the national requirements between inspections • the measures proposed to ensure that there is continuous improvement.

  24. Declaration of Maritime Labour Compliance (DMLC) The DMLCPart II, drawn up by the shipowner, shall Identify: • Target/describe requirement • What to do • Who is to do it • When to do it • In order to ensure ongoing compliance

  25. Areas where we so far have seen special Challenges • DMLC Part I not being available • Establishing, implementing and follow up on procedures (to cover requirements for MLC and DMLC) - Identifying existing, needs for updating, revising and new procedures • Competence for all involved (ashore and onboard) in order to handle this effectively • Inspections and certifications • Scope of Convention • Definition of seafarer • Is a Cadet a seafarer • Training requirements • Hours of work or rest for all seafarers (including masters) • Health Certificates (issuance by a duly qualified medical practitioner) • Applicability for Cruise ships • Applicability for Special Purpose Ships • Applicability for MODUs • Applicability for Yachts

  26. Areas where we so far have seen special Challenges • Compliance with requirements for “Private Recruitment and Placement Services” • Newbuildings (cf. grandfather clause and the term “Keel laying”) • Reporting and follow up of accidents, injuries and diseases • Safety and health policies (including for risk evaluation) • Handling complaints • Document payment of wages • Shipowners’ liability • Documentation logistics • Port State Control (“No more favorable treatment”) • There may well be other challenges for you and we recommend you identify challenges and seek solutions ASAP!

  27. Summing up MLC is coming our way

  28. MLC 2006 – Summary • Entry into force expected in 2012 • Upon entry into force all ships coming within the scope of the Convention will have to be inspected and ships 500 tons and above in international trade have to be certified • Shipowners must have developed and implemented measures for ongoing compliance in advance of ships being certified • Ships from non ratifying states will be met by the ”No more favorable treatment” clause when entering port of a ratifying state (that is they risk a full inspection against Convention requirements” • We recommend customers to start work now – at least to identify scope of work to be done and time needed to do it • For further information contact your local DNV Office or MLC@dnv.com

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