DIASPORAOF FILIPINO SEAFARERS:

A Look at the Flag ofConvenience (FOC) System

Presented during theJCJ Maritime Forum SeriesMariners SystemManila Yacht ClubThursday, June 28, 2012 With UPDATED DATA

By Evita L. JimenezPublished in UKTAW, Mariners 2011

Study on Seafarers• as a unique occupational group of

migrant workers who live their own

diaspora“suspended migrants” “sea-based”

with a special form of social identity

as migrant workers with no host destinationtraversing international waters throughouttheir contracted time

• as a unique occupational group ofmigrant workers who live their own

diaspora“suspended migrants” “sea-based”

with a special form of social identity

as migrant workers with no host destinationtraversing international waters throughouttheir contracted time

Increasing transnational migration

• Philippines: major provider ofseafarers worldwide (increasingly withhigher educational profiles – UNCTAD, 2010)

30% of the world’s employed seafarers

• Philippines: major provider ofseafarers worldwide (increasingly withhigher educational profiles – UNCTAD, 2010)

30% of the world’s employed seafarers

recorded number of seafarers (POEA 2010):

347,150

One out of five aboard ships is a Filipino

Target in 2016: 50% of the world’s share (PJMG)

PHILS: Today, the world’sTOP provider of marine officers

(UNCTAD, 2010)

57,688

Largest provider of officers

PHILS: Today, the world’sTOP provider of marine officers

(UNCTAD, 2010)

57,688Educational infrastructure of about

90 maritime schools which graduatesome 40,000 seafarers / year.Licensed crewing agencies: 421 (UNCTAD, 2010)

The 12 biggest suppliers of officers and ratings in 2010

Source: Compiled by the UNCTAD secretariat on the basis of data supplied by BIMCO in Manpower Update(2010). Ratings: deck hands, cabin cleaners, engine room oilers and cooks working aboard oil tankers, shipsand luxury cruise liners.

Country # ofofficials Marketshare Country # ofRatings Market Share

Philippines 57,688 9.2 China 90,296 12.1China 51,511 8.3 Indonesia 61.821 20.4India 46,497 7.5 Turkey 51,009 21.2Turkey 36,734 5.9 Russian 40,000 32.5Ukraine 27,172 4.4 Malaysia 28,687 36.4

The 12 biggest suppliers of officers and ratings in 2010

Source: Compiled by the UNCTAD secretariat on the basis of data supplied by BIMCO in Manpower Update(2010). Ratings: deck hands, cabin cleaners, engine room oilers and cooks working aboard oil tankers, shipsand luxury cruise liners.

Ukraine 27,172 4.4 Malaysia 28,687 36.4Russian 25,000 4.0 Phils 23,492 39.5US 21,810 3.5 Bulgaria 22,379 42.5Japan 21,297 3.4 Myanmar 20,145 45.2Romania 18,575 3.0 Sri Lanka 19,511 47.8Poland 17,923 2.9 US 16,644 50.0Norway 16,082 2.6 India 16,176 52.2Indonesia 15,906 2.5 Honduras 15,341 54.3

UNCTAD, 2011

2008 2009 2010

261,614 330,424 347,150

Constant increase ofFilipino Seafarers

From POEA 2010

Seafarers: biggest sub-sector of OFWs

Major contributor toPhilippine economy

Out of $16Bremittances ofOFWs,$ 7B from seafarerskeep the economyafloat

Out of $16Bremittances ofOFWs,$ 7B from seafarerskeep the economyafloat

Flag of Convenience (FOC)Flag of Convenience (FOC) Place of Work: Flag ofConvenience (FOC)

The term flag of conveniencedescribes the business practice ofregistering a merchant ship in asovereign state different from thatof the ship's owners, and flyingthat state's flag on the ship. Shipsare registered under flags ofconvenience to reduceoperating costs or avoid theregulations of the owner'scountry.

The country of registration determines the lawsunder which the ship is required to operate

The term flag of conveniencedescribes the business practice ofregistering a merchant ship in asovereign state different from thatof the ship's owners, and flyingthat state's flag on the ship. Shipsare registered under flags ofconvenience to reduceoperating costs or avoid theregulations of the owner'scountry.

The MOL Pride, owned andoperated by the Japanesecompany Mitsui O.S.K. Lines,

flying the flag of Liberia.

Many shipping companiesoperating mostly cargo vesselsand tankers that prefer the FOCsystem come from the U.S.,Japan, Norway, Denmark,Sweden, Australia, Germany,and France. They resort to FOCto avoid paying high wages andcompliance with the strict laborstandards of their own countrywhich must be enforced in theirflag vessels.

Many SHIP OWNERS register their vessels usingdummy companies from such countries as Bahamas,Barbados, Honduras, Panama, Burma, Jamaica,Liberia, and Marshall Islands.

Many shipping companiesoperating mostly cargo vesselsand tankers that prefer the FOCsystem come from the U.S.,Japan, Norway, Denmark,Sweden, Australia, Germany,and France. They resort to FOCto avoid paying high wages andcompliance with the strict laborstandards of their own countrywhich must be enforced in theirflag vessels.

Antigua and Barbuda; Bahamas; Barbados;Belize; Bermuda (UK); Bolivia; Burma (Myanmar);Cambodia (Kampuchea); Cayman Islands;Comoros; Cyprus; Equatorial Guinea; FrenchInternational Ship Register (FIS); GermanInternational Ship Register (GIS); Georgia;Gibraltar (UK); Honduras; Jamaica; Lebanon;Liberia; Malta; Marshall Islands (USA); Mauritius;Mongolia; the Netherlands; Antilles; North Korea;Panama; São Tome and Príncipe; St Vincent; SriLanka (Laos); Tonga; and Vanuatu.

32 countries being used as FOCs

Antigua and Barbuda; Bahamas; Barbados;Belize; Bermuda (UK); Bolivia; Burma (Myanmar);Cambodia (Kampuchea); Cayman Islands;Comoros; Cyprus; Equatorial Guinea; FrenchInternational Ship Register (FIS); GermanInternational Ship Register (GIS); Georgia;Gibraltar (UK); Honduras; Jamaica; Lebanon;Liberia; Malta; Marshall Islands (USA); Mauritius;Mongolia; the Netherlands; Antilles; North Korea;Panama; São Tome and Príncipe; St Vincent; SriLanka (Laos); Tonga; and Vanuatu.

Half of merchant ships:OPEN REGISTER

choice of flags allows companies to takeadvantage of another country'sinfrastructure and the efficiencies ofeffective and non-bureaucratic maritimeadministrations typically offered by theprominent open registers

Traditional reasons for choosingan open register includeprotection from income taxes,wage scales and regulations.

choice of flags allows companies to takeadvantage of another country'sinfrastructure and the efficiencies ofeffective and non-bureaucratic maritimeadministrations typically offered by theprominent open registers

Panama FOC

Country 2007 2008 2009Panama 51,619 53,912 67,362Bahamas 29,681 29,177 36,054Liberia 21,966 21,632 29,796MarshallIslands

9,772 11,859 18,068

Top 10 Flags EmployingFilipino Seafarers:

MarshallIslandsSingapore 10,308 12,130 15,674Malta 7,513 11,025 14,786Norway 8,188 8,883 11,447UK 8,172 8,232 10,313Cyprus 7,052 7,446 9,425Netherlands 7,017 7,796 9,281Total Top 10 161,288 172,092 222,206TOTAL 226,900 244,144 329,728

UNCTAD, 2011

Top 10 Occupations ofFilipino Seafarers:

Occupation 2007 2008 2009Able Seaman 31,818 34,563 45,338

Oiler 19,491 20,941 27,483

OrdinarySeaman

17,355 18,715 23,737

Chief cook 7,778 9,022 12,651

Second Mate 7,873 8,694 12,119

Bosun 7,737 8,603 11,555

Messman 7,810 8,320 10,536

3rd Engr Officer 7,056 7,995 11,307

3rd Mate 6,559 7349 9,857

2nd Engr Officer 6,369 6,878 9,557

Total top 10 119,846 131,080 174,140

TOTAL 226,900 244,144 329,728UNCTAD, 2011

area of workis the ocean-going vessel

Onboard FOC: a common culture

working, living together in a state of community

undertake “circulatory” or“transversal” labor migration

Yet retain their common language,values, norms and beliefs

a common plightas workers and members of ahierarchical organizationaboard their vessels of work.

shared problems: seafarers’ rights ascontractual workers

Subject of the study: seafarersonboard FOCs or Flag of

Convenience

shared problems: seafarers’ rights ascontractual workers

Subject of the study: seafarersonboard FOCs or Flag of

Convenience

Look into how the Filipinoseafarers respond to thesystem that prevails insidethe FOC as their “communityvessels” their DIASPORA

OBJECTIVES of the STUDY:

Look into how the Filipinoseafarers respond to thesystem that prevails insidethe FOC as their “communityvessels” their DIASPORA

Find out policy interventions and/ormechanisms have been made availableby government in their homeland tomitigate problems they face in their work

A socio-cultural study

While problems need to be addressed, itis important to appreciate the situation ofFilipino seafarers:

How many and who they are, under whatconditions do they work at sea,

how they live and work onboard a shipwith other seafarers from differentnationalities and cultures, and

what problems associated with their groupculture and the system at work occur intheir daily grind as seafarers

While problems need to be addressed, itis important to appreciate the situation ofFilipino seafarers:

How many and who they are, under whatconditions do they work at sea,

how they live and work onboard a shipwith other seafarers from differentnationalities and cultures, and

what problems associated with their groupculture and the system at work occur intheir daily grind as seafarers

Filipino seafarersworking in FOCs arecompelled to adapt tothe working conditionsand system of the FOCs

Onboard ships they arepart of an over-allorganizational set-up

Seafarers’ “settlement”, theirDIASPORA

Filipino seafarersworking in FOCs arecompelled to adapt tothe working conditionsand system of the FOCs

highly mechanicalnature and characterof the organizationowned by big foreignshipping companies

looking at the Filipinoseafarers in a new light,what makes them differentfrom other OFWs even asthey are bound by thecommon pattern of diaspora

Diaspora (a scattering orsowing of seeds ordispersal/dispersion) refers toany people or ethnicpopulation forced or inducedto leave their traditionalethnic homelands, beingdispersed throughout otherparts of the world, and theensuing developments intheir dispersal and culture.

Seafarers’ Diaspora: FOCs?:

Diaspora (a scattering orsowing of seeds ordispersal/dispersion) refers toany people or ethnicpopulation forced or inducedto leave their traditionalethnic homelands, beingdispersed throughout otherparts of the world, and theensuing developments intheir dispersal and culture.

More than 1/4 of the world’s total merchantmarine fleet (about 1.2M) with 2/3 of them onboard European owned ships.

Chances of having Filipinos amongthe casualties in maritime disastersare high as what happened in the2003 SS Norway explosion, themost fatal cruise-ship accident in theUS in over a decade where 7 ofthe 8 who died were Filipinos

Chances of having Filipinos amongthe casualties in maritime disastersare high as what happened in the2003 SS Norway explosion, themost fatal cruise-ship accident in theUS in over a decade where 7 ofthe 8 who died were Filipinos

Seafarers onboard FOCs are exposedto multicultural andhierarchical structure with itsconcomitant problems

FOC system:a problem for seafarers?

Seafarers onboard FOCs are exposedto multicultural andhierarchical structure with itsconcomitant problems

whenever a seafarer is hurt orstricken ill, or dies whileperforming duties aboard the ship,real ship owners are able toescape from their responsibilities.

Schein (1992): what groupculture exists for theseafarers aboard FOCswhile working and livingtogether as a communityonboard: Pakikisama,pagtitiis, tiyaga, pasensya

Filipino seafarers beingaway for a long timefrom their homelandwork and live not onsettled communities buton board ships

STUDY uses the various concepts ofculture –political and organizational -- andtrans-nationalism

Schein (1992): what groupculture exists for theseafarers aboard FOCswhile working and livingtogether as a communityonboard: Pakikisama,pagtitiis, tiyaga, pasensya

Filipino seafarers beingaway for a long timefrom their homelandwork and live not onsettled communities buton board ships

Among studies cited: is Steven McKay’s, “At Home onthe Move: Filipino Seafarers and the Making of aTransnational Ethnic Niche,” a paper presented at the2004 annual meeting of the American SociologicalAssociation, San Francisco California.

Filipino culture plays crucial role inadapting to problems faced by seafarers

Cites the significant role of thePhilippine state and how, in itsattempt to harness the resources ofthe Diaspora, has helped constructthe Filipino seafarer as both “cheaplabor and nationalist hero.”

FINDINGS

Findings

Seafarers’ daily lifestyle – 24 hour- in theirdiaspora onboard ships generally follow ahierarchy of roles in their work places aboard ships:

The list of officers and crew in hierarchy the Captain, Chief Mate,Second Officer, Third Officer, Fourth Officer, Boat Swain, Carpenter,Able Seaman (AB), or Ordinary Seaman (OS). Furthermore,assisting the Captain are the Radio Operator, and Chief Engineer);under the Chief Mate are the Chief Steward and Chief Officer; theChief Steward has the Chief Cook, and 3 Stewards; Chief Engineerhas the Second Engineer, 3rd Engineer, and 4th Engineer; the ThirdOfficer has the Machinist, Oiler, Wiper; the Third Engineer has theElectrician. Among them, however, there are only Captains hiredwhile mostly employed are of low rank

The list of officers and crew in hierarchy the Captain, Chief Mate,Second Officer, Third Officer, Fourth Officer, Boat Swain, Carpenter,Able Seaman (AB), or Ordinary Seaman (OS). Furthermore,assisting the Captain are the Radio Operator, and Chief Engineer);under the Chief Mate are the Chief Steward and Chief Officer; theChief Steward has the Chief Cook, and 3 Stewards; Chief Engineerhas the Second Engineer, 3rd Engineer, and 4th Engineer; the ThirdOfficer has the Machinist, Oiler, Wiper; the Third Engineer has theElectrician. Among them, however, there are only Captains hiredwhile mostly employed are of low rank

most seafarersemployed onboardonly for six to ninemonths

Filipino seafarers suffer fromexorbitant fees charged bymany training schools, poorworking conditions, inadequatefood and accommodation, portrestrictions (particularly in theU.S.), sea accidents/ mishaps,lack of medical care,discrimination,piracy/abduction, and generallack of protection provided byinternational law.

contractual & temporary employment

most seafarersemployed onboardonly for six to ninemonths

There is nostandard pay scalegiven by foreignvessels hiringFilipino seafarers.

Filipino seafarers suffer fromexorbitant fees charged bymany training schools, poorworking conditions, inadequatefood and accommodation, portrestrictions (particularly in theU.S.), sea accidents/ mishaps,lack of medical care,discrimination,piracy/abduction, and generallack of protection provided byinternational law.

It is also clear that whileat sea, Philippine lawsoffer no protection andinternationalconventions governingthe seafaring industryare either ineffective orcannot be invoked by acountry (Philippines)

FOC system, Filipino seafarers have no meansof protecting themselves against unfair laborpractices, exploitation or other crimes.

It all begins the place oraddress of the seaman’sresidence. Because they arealways on board and ininternational waters, the Filipinoseafarers’ place of residenceremains their country oforigin. For instance, even if thevessel is registered to an FOClike Liberia chances are, theseaman will never even seeLiberia during his entire voyage.Their problems cannot beresolved onboard the FOC.

It is also clear that whileat sea, Philippine lawsoffer no protection andinternationalconventions governingthe seafaring industryare either ineffective orcannot be invoked by acountry (Philippines)

It all begins the place oraddress of the seaman’sresidence. Because they arealways on board and ininternational waters, the Filipinoseafarers’ place of residenceremains their country oforigin. For instance, even if thevessel is registered to an FOClike Liberia chances are, theseaman will never even seeLiberia during his entire voyage.Their problems cannot beresolved onboard the FOC.

To cope with problems onboard FOCs,Filipino seafarers manage and adapt totheir situation

Despite being globalpeople, Filipinoseafarers cannotinvoke internationallaws to protect theirrights because thereare no such laws forthem

Hence, seafarers inpractical terms, arecompelled by the natureof their contracted jobs,to adapt to their newenvironment inside theship based on theirindividual occupationswith “routine, standardresponses oftenresulting in short termsolutions.

Despite being globalpeople, Filipinoseafarers cannotinvoke internationallaws to protect theirrights because thereare no such laws forthem

Hence, seafarers inpractical terms, arecompelled by the natureof their contracted jobs,to adapt to their newenvironment inside theship based on theirindividual occupationswith “routine, standardresponses oftenresulting in short termsolutions.

Because there isno definitivepolicy and lawsgoverning theocean-goingvessels and theircrew.

Filipinos’ cultural tenacity,especially to adapt and goalong with the dominantvalues, attitudes, groupnorms and “rules of thegames” inside theorganization within theship, that make the life ofthe Filipino seafarers “lessstressful and lessintimidating

Filipino seafarers are clearly left withholding on to existing mechanisms ofadaptation and learning

Because there isno definitivepolicy and lawsgoverning theocean-goingvessels and theircrew.

Filipinos’ cultural tenacity,especially to adapt and goalong with the dominantvalues, attitudes, groupnorms and “rules of thegames” inside theorganization within theship, that make the life ofthe Filipino seafarers “lessstressful and lessintimidating

“Pakikisama” is the Filipinos’ way to adaptand get along with the others. NOT tocomplain

Oftentimes, pakikisama (go along well) iscombined with being “pasyensyoso” (patient)and “matiisin.” (work without complaint).

This was important for him because he had toshow his “best” towards his superiors whowould always pat him on his back inacknowledgment.

the best behavior and attitude that lowpayingFilipino seafarers can demonstrate is to “go along”with the dominant views in the organization

“Pakikisama” is the Filipinos’ way to adaptand get along with the others. NOT tocomplain

Oftentimes, pakikisama (go along well) iscombined with being “pasyensyoso” (patient)and “matiisin.” (work without complaint).

This was important for him because he had toshow his “best” towards his superiors whowould always pat him on his back inacknowledgment.

When FOCs do not providethe same protection for theFilipino seafarers becausethey are not kababayan tothe owners of the ships…one option is they jumpships

OR one reason why jumping ship is abetter option for some Filipino seafarers

When FOCs do not providethe same protection for theFilipino seafarers becausethey are not kababayan tothe owners of the ships…one option is they jumpships

And the need to survivedomestic poverty broughtabout by the economic failuresof every political leadershipwhose socio-political survivalironically is also badlydependent on the sameFilipino workers driven awayfrom home

The diaspora of Filipino seafarers drivenby economic necessity

And the need to survivedomestic poverty broughtabout by the economic failuresof every political leadershipwhose socio-political survivalironically is also badlydependent on the sameFilipino workers driven awayfrom home

Philippine labor lawsare generallydesigned for land-based workers

Available mechanisms put inplace by the government toaddress problems related to thesystem of the FOC have beenmainly done through the routeof the Philippine OverseasEmployment Agency (POEA),Department of Foreign Affairs,Maritime Regulatory Authority(MARINA) and non-governmentorganization (NGO) initiativesand interventions

Why do Filipino seafarers have noaccess to Philippine labor laws when onboard FOCs?

In effect, thecountry’s labor lawsand regulations aresubordinated to thedemands of theglobal maritime labormarket.

Available mechanisms put inplace by the government toaddress problems related to thesystem of the FOC have beenmainly done through the routeof the Philippine OverseasEmployment Agency (POEA),Department of Foreign Affairs,Maritime Regulatory Authority(MARINA) and non-governmentorganization (NGO) initiativesand interventions

In October 2008, the M/V African Sanderling, with 21Filipino seafarers aboard, was hijacked by rebels inSomalia.

Before that, the M/V Efximos exploded off the coast ofUnited Arab Emirates (UAE), leaving four Filipinoseamen dead. The ship was owned by Greeknationals but used the Maltese flag as its carrier.

All of these ships were flying FOCs and it had beendifficult for the families and even the organizationsadvancing the rights and welfare of the Filipinoseafarers to make the ship owners accountablebecause FOCs conceal their true identities.

Various cases involving Filipino seafarersaboard FOCs show increasing danger for thesecurity of the working crew and officers.

In October 2008, the M/V African Sanderling, with 21Filipino seafarers aboard, was hijacked by rebels inSomalia.

Before that, the M/V Efximos exploded off the coast ofUnited Arab Emirates (UAE), leaving four Filipinoseamen dead. The ship was owned by Greeknationals but used the Maltese flag as its carrier.

All of these ships were flying FOCs and it had beendifficult for the families and even the organizationsadvancing the rights and welfare of the Filipinoseafarers to make the ship owners accountablebecause FOCs conceal their true identities.

Problems related to the FOCs in particular canonly be decided on the policy level.

But the hands of the government are tied due toits weaknesses in addressing the problems of thecontinuously weakening local economy and itsdependence on foreign companies includingshipping firms to recruit its work force aboard theirFOCs.

Needed: POLICY LEVELintervention

Problems related to the FOCs in particular canonly be decided on the policy level.

But the hands of the government are tied due toits weaknesses in addressing the problems of thecontinuously weakening local economy and itsdependence on foreign companies includingshipping firms to recruit its work force aboard theirFOCs.

RECOMMENDATIONSRECOMMENDATIONSRECOMMENDATIONS

Remedial Recommendations

Executive Department: Should streamlineand systematize for efficiency, all maritime-related agencies whose functions tend toconflict and weed out redundancies

Congress: Revisit of the Labor Code with aview toward integrating or clarifying the rights ofFilipino seafarers and the obligation of the state;should also ratify other international labortreaties or conventions most especially the ILO’sMaritime Labor Convention

The Convention sets outseafarers' rights to decentconditions of work on a widerange of subjects, and aims tobe globally applicable, easilyunderstandable, readilyupdatable and uniformlyenforced. It has been designedto become a global instrumentknown as the "fourth pillar" ofthe international regulatoryregime for quality shipping,complementing the keyConventions of the InternationalMaritime Organization (IMO).

RATIFY MaritimeLabor Convention

The Convention sets outseafarers' rights to decentconditions of work on a widerange of subjects, and aims tobe globally applicable, easilyunderstandable, readilyupdatable and uniformlyenforced. It has been designedto become a global instrumentknown as the "fourth pillar" ofthe international regulatoryregime for quality shipping,complementing the keyConventions of the InternationalMaritime Organization (IMO).

ratification of the MLC would helpengender more positive laws andregulations governing the systemof ship operations and governancevis-à-vis ensuring the rights andwelfare of the seafarers, thepropelling force in the shippingindustry.

Seafarers’ groups in the Philippines have formedan alliance, the Decent Work for SeafarersAlliance to push for the ratification of the MaritimeLabor Convention (MLC) which was adopted bymember-states of the International LaborOrganization (ILO) in 2006.So far, only 10 member states namely, Canada,Norway, Spain, Croatia, Bulgaria, Bosnia, Liberia,Panama, Marshall Islands, Herzegovina andBahamas have ratified the convention while therest of the members, including the Philippines,have not. Thus, the convention has not beenenforced.

Philippines notsignatory yet … MLC

Seafarers’ groups in the Philippines have formedan alliance, the Decent Work for SeafarersAlliance to push for the ratification of the MaritimeLabor Convention (MLC) which was adopted bymember-states of the International LaborOrganization (ILO) in 2006.So far, only 10 member states namely, Canada,Norway, Spain, Croatia, Bulgaria, Bosnia, Liberia,Panama, Marshall Islands, Herzegovina andBahamas have ratified the convention while therest of the members, including the Philippines,have not. Thus, the convention has not beenenforced.

•Research. More studies should bedone with regard to the particularsituation of Filipino seafarers and theirfamilies;

•Support intervention from NGOs: Tohelp provide legal, moral, psycho-socialand other forms of intervention to victimsof injustices committed aboard FOCs;

More Recommendations

•Research. More studies should bedone with regard to the particularsituation of Filipino seafarers and theirfamilies;

•Support intervention from NGOs: Tohelp provide legal, moral, psycho-socialand other forms of intervention to victimsof injustices committed aboard FOCs;

• Revisit, Assess, Evaluate the decades’ oldlabor export policy of government to bereplaced by an emphasis on jobs-creation athome. This also entails reviewing globalizationpolicies that promote the export of cheap laborfor the global profit-driven internationalmarket;

Recommendations

• Revisit, Assess, Evaluate the decades’ oldlabor export policy of government to bereplaced by an emphasis on jobs-creation athome. This also entails reviewing globalizationpolicies that promote the export of cheap laborfor the global profit-driven internationalmarket;

•Develop a national shippingindustry which would accommodateand harness the skills and knowhowof Filipino seafarers and maritimeprofessionals toward self relianceand national development. (NB.Thesteel industry is the backbone ofshipping) #

Main Recommendation

•Develop a national shippingindustry which would accommodateand harness the skills and knowhowof Filipino seafarers and maritimeprofessionals toward self relianceand national development. (NB.Thesteel industry is the backbone ofshipping) #