THE FLAG OF CONVENIENCE (FOC) CAMPAIGN
el porvenir del activismo sindical en el sector marítimo
l’avenir du militantisme dans le secteur maritime
the future of maritime activism
A short introduction to the campaign
Flag of Convenience (FOC)
What is a FOC register and ship
• FOC registry is when a country allows a ship to be registered in its country while the ownership is in another country.
• FOC ship flies the flag of a country other than the country of ownership.
Why are ships flagged in FOCs
• Cheap registration fees
• Tax avoidance
• Freedom to employ cheap foreign crew
• Avoid trade unions
• Lower standards – safety, social, environmental
• Easier enforcement of mortgage
• Limitation on claim liability
• Ability to move money
Flag of Convenience history
1943
1919
1970 1972
1948 1949
1987
1984
1993
1989
2015 - 2016
2003
2011 Second registries established
Belen Quezada First foreign ship in Panama registry
ITF FOC Campaign
Honduras registry established
Liberia registry established
ITF Congress Agree the appointment of ITF Inspectors ITF Standard Agreement established by the FPC
International Bargaining Forum (IBF) Agreement
Isle of Man registry established
Netherlands Antilles Registry established Norwegian International Ship Registry (NIS) established
World Peace First ship under Liberia Registry
International Maritime Employers Council
(IMEC)
ITF Cabotage Campaign launched
Today: roughly 13000 vessels are covered by an ITF approved agreement.
ITF Uniform TCC Agreement
Liberia registry largest in the world
Why the FOC campaign was launched
Political To eradicate the FOC
system
To “chase” ships back to national flags – country of the ship’s ownership.
Industrial • Improve wage and
working conditions for seafarers on FOC ships that are enforceable.
• Reduce the wage difference between a national flag ship and a FOC ship.
1. Antigua and Barbuda
2. Bahamas
3. Barbados
4. Belize
5. Bermuda (UK)
6. Bolivia
7. Cambodia
8. Cayman Islands
9. Comoros
10. Cyprus
11. Equatorial Guinea
12. Faroe Islands International Ship Register (FAS)
13. French International Ship Register (FIS)
14. German International Ship Register (GIS)
15. Georgia
16. Gibraltar (UK)
17. Honduras
The following 35 countries have been declared FOCs by the ITF's Fair Practices Committee (a joint committee of ITF seafarers' and dockers' unions), which runs the ITF campaign against FOCs
18. Jamaica
19. Lebanon
20. Liberia
21. Malta
22. Madeira
23. Marshall Islands (USA)
24. Mauritius
25. Moldova
26. Mongolia
27. Myanmar
28. Netherlands Antilles
29. North Korea
30. Panama
31. Sao Tome and Príncipe
32. St Vincent
33. Sri Lanka
34. Tonga
35. Vanuatu
FOC “Ship-by-Ship”
• Any vessel in any registry can be declared FOC on a ship-by-ship basis if the ownership is in another country than the registry.
• Consultations must be had between the affiliates in the Flag State and the Beneficial Ownership affiliates.
Hong Kong
Singapore
Philippines (Foreign ships bareboat chartered in Philippines)
Governance – FOC campaign
Why a registry is declared
Majority of the ships in the register are foreign-owned
Sub-standard and/or lack of global social standards, e.g.
Human & trade union rights
Freedom of association / collective bargaining
ILO/IMO instruments not ratified / enforced
How a registry is declared
ITF receives a formal request from an affiliate or affiliates with the reason and documentation
ITF has consultations with the relevant affiliates
Fair Practices Committee Steering Group mandated by the Fair Practices Committee declares the registry or ship a FOC if circumstances dictate
FOC Q&A
1. Why does ITF's Fair Practices Committee object to flags of convenience or as shipowners prefer to call it “open registers”?
"The ITF's objection to the flags of convenience (FOC) system is because there is no genuine link between the vessel owner and the register, which is the central principle behind the UN Convention on the Law of the Sea.
The lack of a genuine link can undermine the safety, health and pay of seafarers since it weakens the effective bargaining power of the seafarers and enforcement of national and international regulations.
FOC registers are commercial enterprises and the attraction of FOCs for shipowners is because they offer anonymity, a dangerous lack of transparency, cheap registration fees, low or no taxes and freedom from oversight."
FOC Q&A
2. What negative impact do FOCs have on the shipping industry and workers in particular?
"The FOC system allows abuses and enshrines secrecy, protecting the abusers.
Meanwhile, the cost cutting and lax regulation inherent within it oppresses the seafarers and also distorts the economics of trade, leading to a situation where goods are sent thousands of miles by sea for some minor processing task then returned to the home country for sale, just to shave a few pennies off the price."
FOC Q&A
3. Have there been any improvements to oversight of FOC registries in recent years?
"Some FOCs have made efforts to improve their oversight and safety records. Most haven't, while at the bottom there's a raft of really badly performing, deeply dangerous flag states whose vessels are known throughout the industry for their usually dangerous condition and no questions asked attitude to suspicious cargoes.
There has been something of a breakthrough in the shape of the ILO Maritime Labour Convention 2006, which came into force in 2013. This sets minimum standards for shipping and also helps police of them. The ITF played a major role from its conception."
For more details of the MLC: http://www.itfseafarers.org/ILOMLC.cfm
FOC Q&A
4. What is the history/background of ITF's Fair Practices Committee?
"The ITF stretches back to 1896 when seafarers and dockers found a common cause and strengths. Within a few years the federation expanded its membership to transport workers' unions in other sectors, but it has never lost its core maritime character.
Our FOC campaign dates back to 1948 as a response to the emergence and expansion of FOCs. It first began as a political campaign and then developed into an industrial campaign to send a message to the world that the ITF is opposed to the system. Since then the ITF has been dedicated to setting out and enforcing decent wages, conditions and protections for everyone working on FOC ships."
For more information:
“Fighting for better seas: the ITF’s FOC campaign – 2016”
http://www.itfseafarers.org/
Watch the ITF video
and
Visit our website to learn more about FOCs and the campaign.
