«Crewing Guide» has already written about the
world highest salary of a seaman and the level of wage depending on the fleet and the position. And today we’ll talk about who sets the minimum wage standards for seafarers, and what to expect in 2025.
Calculating, calculating...
The arbiter of the financial destinies of seafarers is the Joint Maritime Commission International Labor Organization (ILO). It includes: International Transport Workers' Federation (ITF), International Chamber of Shipping (ICS) and the list of major maritime countries. Among them are China, Greece, Japan, South Korea, USA. Full list of ILO member countries can be found on the official website
Ratifications of ILO conventions: Ratifications by Convention
The representatives of organizations calculate and update maritime rates every two years. So last meeting took place in 2023, where the minimum wage was established in amounting to $ 658. The next meeting of the commission will be held in 2025, where items of expenditure and the decision on the minimum wage for 2026-2027 will be discussed.
How do the commission members come up with these salaries?
The fundamental normative document on which «maritime accountants» rely is the recommendations of «Seafarers' Wages, Hours of Work and Manning of Ships Recommendation, 1996 (No. 187)». This regulatory document is the only binding international mechanism for regulating wages. Next, changes in consumer prices, exchange rates (namely the stability or instability of the domestic (local) currency in relation to the US dollar as the main payment unit for wages of seafarers) and purchasing power in different countries are taken into account.
A comparative analysis of salaries from the Independent Maritime Consulting Center Drewry Shipping over the past years can be found in the article The Influence of the Residence Country on the Seaman’s Wage Level.
Maybe we can come to an agreement?
The ILO precepts are not always an impeccable axiom for ship-owners. The formation of seafarers’ salaries also depends on the ship’s flag - national or falling under the agreement of the International Transport Workers' Federation. And if in theory everything is clear with the latter category: the rights of seafarers are protected by the above mentioned document, the first category depends on national collective agreements. The collective bargaining agreement is a legally binding written agreement between a company and its employees represented by the independent union.
However, there is a category of vessels where «collective agreement» or «ITF» are the words that have only a small impact. The union always recommends that you be wary of vessels under «convenient flag» whose owners can change the «rules of the game» on the fly, guided only by the national legislation of the flag country. In such a situation, it is very difficult to legally defend the rights.
Are we flying or falling? Forecast for 2025
At the beginning of 2023 the minimum base salary for Able Seaman was $ 658. The ILO Commission adopted a plan to increase the minimum wage of seafarers in 2025 by 2.28%. Yes, this is a drop in the ocean, but there is a guarantee that from January 1, 2025 seafarers will not receive less than $ 673. At least on vessels covered by the ITF agreement.
At the meeting to discuss the issue ITF Seafarers Section Chairman David Heindel said: «This has been a particularly complex set of negotiations in the wake of the Covid pandemic, requiring a lot of effort and compromise on both sides to ensure that everything is done in accordance with the demands of the times. It's a fair deal. We have agreed to establish a working group that will examine the future needs of the changing industry, taking into account the needs of seafarers with a particular focus on recruitment».
At the same time, the ITF agreed that wage growth does not cover the costs of modern realities, but this is only the recommended minimum. In pursuit of qualified personnel the large companies increase the amount of payment several times. Whether this is a rise or fall for the maritime industry is up to everyone to decide for themselves, as well as which vacancies to apply for and what salaries to accept.
We wish you the most profitable contracts!
Author of the article: our own correspondent Ilona Skripnik
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