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Collection of illegal recruitment fees and charges in violation of the Maritime Labor Convention is particularly rampant in India, the Philippines and Myanmar, a new report says
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Nearly 65% of more than 200 seafarers surveyed said they are aware of the illegal charges while 92% called for an end to these corrupt practices
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The report, “Survey on Fees and Charges for Seafarer Recruitment or Placement,” was produced by Liverpool John Moores University (LJMU) and The Mission to Seafarers to shine a light on the forced collection of illegal fees from seafarers
Illegal hiring fees wrung out of job-seeking seafarers in violation of the Maritime Labor Convention, particularly in India, the Philippines and Myanmar, have been exposed in a newly released research and survey report.
Nearly 65% of respondents said they were aware of illegal demands for recruitment or placement fees, either through personal experience or the experience of a colleague, and 92% declared these corrupt practices must end – highlighting their awareness that such fees and charges are an unacceptable part of the hiring process.
The report, “Survey on Fees and Charges for Seafarer Recruitment or Placement,” shines a light on instances where seafarers are being forced into paying illegal fees and charges, further confirming the extent of this serious problem and providing a better understanding of how widespread the issue is, say the Liverpool John Moores University (LJMU) and The Mission to Seafarers (MtS), a leading maritime welfare charity.
The LJMU and MtS teamed up in a survey of more than 200 seafarers from a wide variety of ranks, age and nationalities. All data collected was processed rigorously in adherence to academic standards at the university, said the two advocates of seafarers’ welfare.
In the countries where illegal fees were most prevalent, 29% of cases involved Indians, followed by Filipinos and Myanmarese (Burmese). In 36% of cases, the demand for fees was made in India, the Philippines and Myanmar.
Some 58% of respondents said the illegal hiring fees wrung out from them were imposed by the crewing agent appointed by the shipping company. A further 31% said it was demanded by an individual linked to the crewing agent and 11% said the demand came from a shipping company employee.
When asked about the nature of the demand, 56% responded that it was described as a “service charge”, 29% as “agency fees/registration fees” and 29% as a “bribe”. The sums involved varied from US$50-100 up to US$7,500, with the average being US$1,872.
In 10% of reported cases, the seafarers affected are still in debt. Furthermore, 29% of respondents had experienced their documents, typically their Continuous Discharge Certificate/Seaman’s book, passport or Certificate of Competency, being unlawfully withheld during the recruitment process.
Such behaviour is a clear breach of the Maritime Labour Convention (MLC), an international treaty adopted by the International Labour Organization that entered into force in 2013 and is often referred to as the “Seafarers’ bill of rights.”
“It makes clear that no fees or charges should be borne by the seafarers for their recruitment, placement, or employment, other than for their [seaman’s] book, statutory medical certificate, and passport. All seafarers should be able to access employment without the payment of fees or charges to recruitment agencies or intermediaries,” said the report, which builds on the initial study carried out by the Institute for Human Rights and Business (IHRB) and the Sustainable Shipping Initiative (SSI) in April 2023.
The impact of illegal hiring fees wrung out of seafarers and their families can be very significant. In addition to the financial burden, the stress and strain inflicted can take its toll on the mental health of seafarers, while also limiting their career opportunities. In the worst cases, this exploitation can lead to serious human right violations, with seafarers trapped in debt bondage and forced to endure exploitative working conditions, LJMU and MtS said.
The issue of illegal fees also poses a serious reputational risk for the shipping industry, leading to a breakdown of trust between seafarers and employers. Moreover, it exacerbates existing labor shortages in the shipping industry, discouraging existing seafarers from returning to sea and putting off the next generation from considering seafaring careers, the seafarers’ advocates said.
The report formed part of a discussion at The Global Forum for Responsible Recruitment, a major international forum bringing together businesses, civil society, trade unions, government, and academia to discuss the global agenda on responsible recruitment.
Ben Bailey, The Mission to Seafarer’s Director of Programme, spoke at the Forum on the specific challenges faced by seafarers in terms of their employment and working conditions.
“This report confirms what seafarers have told us informally when it comes to the scourge of illegal fees and charges that so many of them are being coerced into paying in return for employment,” Bailey said, commenting on the report.
“The illegal charging of fees impacts not just the livelihoods and wellbeing of seafarers and their families who are being systematically exploited, but also to the wider reputation of the shipping industry. If shipping wants to be able to attract and retain the talented seafarers that it relies upon, it will require meaningful action from national and international regulators, shipping companies, and the recruitment sector to drive out this practice.”
Dr. Christos Kontovas, LJMU report lead author, added: “Our study sheds light on the disturbing reality of seafarers being subjected to illegal fees and charges. These practices can trap seafarers in debt bondage, compelling them to endure exploitative and abusive working conditions. What is truly disheartening though is that such practices tarnish the image of the maritime industry, leading to its perception as exploitative and unfair.”
Further work is ongoing which builds on a series of recommendations to tackle this issue. These include better definitions of fees and charges, and increased education and awareness, the authors said.
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