The Netherlands Institute for Human Rights has ruled that the international practice of determining seafarers’ wages based on the cost of living in their country of residence is not justified. The Royal Association of Netherlands Shipowners (KVNR) expressed surprise at the non-binding decision, warning it could damage the Dutch maritime sector’s position and undermine a level playing field in global shipping.
Two seafarers from Indonesia and the Philippines had filed complaints with the College against two Dutch employers.
‘By now deviating from the international practice in these national judgements, the Netherlands Institute for Human Rights undermines the international level playing field with all the potential risks for the Dutch maritime sector,’ says KVNR Director Annet Koster.
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Fair system based on country of residence
The wage system, widely applied across the industry, reflects the international nature of shipping. Since seafarers spend their leave primarily in their home countries, pay levels have traditionally been linked to local price levels. KVNR argues this avoids wage discrimination given differences in taxation, social systems, and cost of living.
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Previous ruling
A similar case was heard in 1997 by the Equal Treatment Commission, the Institute’s predecessor, which at the time judged the system justified under international labour regulations.
Koster commented: ‘It is incomprehensible that the College states that the country of residence principle would no longer be necessary, while this international state practice is simultaneously confirmed by the College. We will first discuss the judgments with the government and social partners.’
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23,000 seafarers on Dutch flagged ships
According to data from the KVNR, approximately 23,000 seafarers work on Dutch flagged sea ships, who reside in countries all over the world where the Netherlands recognises navigation authorisations. Together with the Dutch union Nautilus International, the Dutch shipowners are committed to sustainable collective labour agreements with local trade unions in the countries where many seafarers reside.
Picture by Maxime Felder, Wikimedia Commons.
