Norwegian wages on foreign ships?

The government wants to protect the crew of foreign ships by ensuring them a Norwegian wage level when they work in Norway. As expected, the proposal receives support from the unions. The support from Hurtigruten however, is probably somewhat surprising. Here is a brief summary of the most important points in the proposal.

The government has just sent a proposal for a completely new law for consultation. The law shall regulate which (Norwegian) wage- and working conditions the crew shall have when foreign ships are in Norwegian waters. The law shall also regulate which foreign ships these requirements apply to. The purpose of the law is to counteract social dumping, make the competition for maritime services in Norwegian waters fairer, and to ensure future recruitment to the maritime sector.

Which ships?

The government proposes that the rules apply to:

• Cargo ships and passenger ships sailing between Norwegian ports;
• Cruise ships that sail between Norwegian ports or only operate from one Norwegian port (e.g., day cruises). If the cruise ship comes from or is going abroad, the law shall apply if more than half of the voyage, measured in time, takes place in Norwegian territorial waters;
• Ships that provide other services in Norwegian waters (e.g., work boats for offshore installations, hotel boats and tugs);
• Ships that are used for some time in connection with the construction, operation or use of facilities and facilities on the Norwegian continental shelf or in the Norwegian economic zone (offshore activity).

Fishing and catching vessels and ships operating in international shipping are excluded from the proposal.

Which wage- and working conditions?

The government proposes that the crew should have wage, overtime allowance, shift- and rotation allowance, and inconvenience allowance in accordance with Norwegian law and collective agreements. They also want to set a minimum wage for various positions based on the wage level in collective agreements. The government points out that it is easy to supervise remuneration and that these are conditions that can easily be changed during the periods the ship is in Norway.

The government has considered, but does not propose, that the crew should also be covered by working conditions other than salary, e.g., working and rest time and work performed by children and young people. Part of the reason for this is that they believe that the international set of rules regulate this to a sufficient degree or that it becomes too intrusive to impose such working conditions. An example from the government that it becomes too intrusive to impose such working conditions is that our holiday rules can lead to the need for a completely different staffing, e.g., an extra shift, if they are to apply while the ship is in Norway.

How to check and ensure that the crew gets what they are entitled to?

The employer, the shipping company, the licensee, and the operator are the ones who must provide for/ensure that the crew receives the wage they are entitled to. The government also proposes that the employer and the shipping company together be jointly and severally liable to the crew for the wage they are entitled to.

The government proposes that the Norwegian Maritime Directorate shall supervise that the crew is paid in accordance with the law. The Norwegian Maritime Directorate shall also be given competence to issue orders for necessary measures and to adopt coercive fines, that the ship shall be detained in a Norwegian port until the order has been complied with, and fine for violations. In addition, the proposal provides rules on fines or imprisonment for anyone who intentionally or with gross negligence allows an employee to be employed on significantly worse terms than the bill.

The unions that are parties to certain collective agreements must also be able to demand to come on board to examine the crew's wage and possibly report to the supervisory authorities.

When will this apply?

LO and the seamen's organizations rejoice over the proposal. The Norwegian Shipowners' Association is awaiting the proposal. Earlier this year, Hurtigruten went out and supported the demand for Norwegian wage and working conditions in Norwegian waters. Their reasoning was that it would lead to equal treatment and have a major effect on the number of Norwegian seafarers and value creation in Norway.

The consultation deadline for the proposal is 30 August 2022, and Minister of Fisheries and Aquaculture Bjørnar Skjæran has stated that the government wants to reach its goal within the year. This probably means that the Parliament (Stortinget) will receive a proposal this autumn so that the changes can be adopted before the turn of the year - and may already have consequences for next summer's cruise traffic.