Annex 12 Labour Market Maritime Transport (including ports)

Transcription

1 Annex 12 Labour Market Maritime Transport (including ports) Background information for the study Analysis of the trends and prospects of jobs and working conditions in transport

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3 Contents 1 EU MARITIME TRANSPORT LABOUR MARKET Introduction Sub-modes and professions Analytical framework 6 2 PESTLE-ANALYSIS ON EU MARITIME TRANSPORT LABOUR MARKET Political factors Economic factors Social factors Technological factors Legal factors Environmental factors 21 3 EU MARITIME TRANSPORT LABOUR MARKET TRENDS Trends in demand Trends in supply 29 4 DISCREPANCIES EU MARITIME TRANSPORT LABOUR MARKET Quantitative discrepancies Qualitative discrepancies Information asymmetries 47 5 REDUCTION OF DISCREPANCIES EU MARITIME TRANSPORT LABOUR MARKET General solutions to discrepancies General solutions to discrepancies maritime transport Promoting inflow Preventing outflow/ diminishing labour demand 56 6 CONCLUSIONS AND RECOMMENDATIONS Sub-sectors and job types Data and literature Social dialogue Global undertakings and policies Demand and supply of labour and skills Attractiveness of working in the sector Education, training and certification Conclusions: bottlenecks and risks Policy suggestions 67 3

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5 1 EU maritime transport labour market 1.1 Introduction This is Annex 12 to the Analysis of the trends and prospects of jobs and working conditions in transport, commissioned by JRC and conducted by Panteia in cooperation with PwC Italy. The Annex contains both detailed information and analyses on the specific transport mode - often distinguishing maritime and ports - and the transport sector at large which allow the report to be read as a standalone document along the main report. This Annex covers the PESTLE-analysis, labour market trends, discrepancies in the labour market, options to reduce the discrepancies and main findings. These are treated in the consecutive chapters. The results of some specific research steps and on specific topics are not included as they are presented en block in the main report. This includes: Detailed assessment of the relative job quality (Task 4); Review of the human capital perspective aiming to draw a human capital map for 2010 and 2020 of the EU transport sector (Task 5); Findings targeted stakeholder consultation; (Anecdotic) evidence on social dumping, cabotage and other social problems; Lists of literature and internet sources. The Annex does not aim to give a complete new overview of the labour market in maritime transport but gives the findings as were anticipated during the execution of the study. In itself labour market issues and its description are not of static nature and would require continuous updating. 1.2 Sub-modes and professions The maritime transport and ports sector comprise three subsectors: Ports, that function as a transhipment point between vessel and shore; Passenger services, mainly cruise and ferry services; Freight services, covering a wide area of services (container, bulk, but also auxiliary port services. The relevant job types found in maritime transport and in the ports are the following: Ship crew Pilots Attendants (passengers only) Port workers Management Back-office Maintenance staff Engineers. 5

6 1.3 Analytical framework The analytical framework that is applied in the study, comprises four interconnected labour market models: flow model, discrepancies model, PESTLE - analysis model and solutions model. It is presented in detail in Annex 1. On the basis of this analytical framework the research questions to be answered in this study are formulated. This can be described as follows: The external factors influencing the development of the labour market can be identified by looking at six specific domains. The six dimensions are the political, economic, social, technological, legal and environmental dimension, together PESTLE. These six different dimensions can influence the situation on the transport labour market to a large extent, though some are obviously more important than others. The PESTLE-model provides, so to speak, a common language to describe the challenges faced by the different actors. The EU transport labour market has a demand side and a supply side. The demand for labour has a quantitative side (number of jobs) as well as a qualitative side (requirements on workers) and is being influenced by the specific (labour market) characteristics of the sector. Likewise, the supply of labour has a quantitative side (number of potential workers) as well as a qualitative side (characteristics of workers, e.g. competences). An ideal sectoral labour market knows completely balanced demand and supply. In the real world, however, this is mostly not the case: labour shortages and redundancies cause problems for market agents. Hence, at the centre of this analysis of the EU transport labour market is the discrepancies model: the EU transport labour market is analysed according to the three characteristics of market functioning: (1) quantitative discrepancies, (2) qualitative discrepancies and (3) information asymmetries due to lack of transparency of the transport labour market. The chapters in this Annex follow this structure, first the PESTLE analysis is carried out. This is followed by description of supply and demand. This is followed by a description of the discrepancies in the labour market. Thereafter strategies to reduce discrepancies are discussed. The main conclusions and recommendations at mode level are presented in the last chapter. 6

7 2 PESTLE-analysis on EU maritime transport labour market This section describes context factors influencing the EU maritime transport labour market, the so-called PESTLE-factors: political, economic, social, technological, legal and environmental factors. 2.1 Political factors General context EU transport labour market The following political factors play an important role for the EU transport labour market as a whole: EU Enlargement, Single Market and Market liberalisation: Transport companies increasingly make use of more affordable labour from new Member States and establish subsidiaries in those countries. Remaining protectionism: Some Member States show in specific areas a poor record of transposition and effectuation of EU market liberalisation policy. Integration of transport system: The EU s political objective is to transform the European transport system into an integrated, sustainable and efficient mobility network. Central role of social dialogue in EU transport labour market: Social dialogue figures as a central instrument of governance in the transport labour market in the European Union and its Member States. At EU-level Sectoral Social Dialogue Committees play a central role. Political priority of Life Long Learning (LLL): LLL helps employees to adapt to the changing circumstances in and requirements of their respective professions. Europe 2020 and Flexicurity : Flexicurity consists of ensuring no longer a job for life ( job security ) but of ensuring employment security thanks to active employment policies and an appropriate safety net when one has lost his/her employment. Political priority of ecological focus: Emphasis on decarbonisation and energy security leads to a modal shift and the introduction of alternative energy and propulsion systems in transport means Specific context EU maritime transport labour market Market liberalisation Maritime transport (excluding ports) The maritime sector is highly international and competitive, which is reflected in its labour market. In the opinion of Commission staff there is no problem with market liberalisation in itself: it is about how liberalisation is implemented. In this respect, Commission staff points at the problem with flagging out. Keeping a sizeable fleet for the EU is crucial. Employment level on EU ships needs to be secured. To 7

8 do that, a competitive sector is needed. Competition is global. As a result of flagging out, a reduction of supply of employment, but also a reduction in the EU owned fleet can be seen. The commission is aware of economic consequences of adding legislation that has effect on more flagging out. There is a fine balance needed, which is a case by case consideration on correct legislative action. According to ECSA, the current legislative framework allows for easy changing of flag/register. This allows companies to operate at the lowest possible costs. Labour unions consider flagging out to be detrimental to employment (of EU employees) and working conditions (of all employees). In the view of ECSA, this might true in some cases, but in general the European controls are very strict and avoid these situations. Furthermore, the EU has also created the possibility to operate at lower costs per employee. This has resulted in returns to EU-flags and increase European employment. When considering the maritime labour market a distinction needs to be made between officers and ratings, In the view of ECSA, some negative impacts of liberalisation could be observed for the ratings, but not for the officers: Officers: employers are still willing to pay the wage difference between EUworkers and 3rd-country workers, focussing on long-term benefits. The employees see the possibilities they will have when working on-shore. Ratings: in this area European employees have a clear disadvantage compared to 3rd-country workers. This disadvantage is increasing as the skills of 3rd-country workers are clearly improving, putting EU-workers under pressure. Experience/view of individual maritime transport companies As a ferry operator, we particularly see competition for employees by the offshore business and ports. Ports compete as they mainly attract seafarers to become pilots in their ports. The offshore business simply offers more money, something we cannot exactly match and the ports offer day jobs, so an even better work/life balance then we can offer. But this is not particularly unfair, it is the nature of the game. We do see that the competition with the pilot sector increases from time to time intensely. This has to do with the age structure within the ports: from time to time there are periods of many people retiring and this has a great effect on us loosing employees to the ports. The companies in our ports vie for the same students of course, competition is normal. Strategies consist of good primary and secondary working conditions, offering care er opportunities and so on. There isn t any competition on the labour market, our company doesn t experience competition from other competitor in recruiting desired profiles. From a contractual point of view our company pays high skilled profiles a lower wage than other competitors, but can provide more social protection. Source: Enterprise survey by Panteia/PWC 8

9 Ports The reform of port labour has been on the European agenda for almost 25 years. In 1991, the Court of Justice found the Italian dock labour scheme to be contrary to the European treaty rules. Ten years later, the European Commission unveiled its first liberalisation plans. However, the European Parliament has since twice rejected a proposed liberalisation directive for ports, with protest from dock workers playing an influential role. On 15 and 16 January, a workshop was held in The Hague (Netherlands) to discuss the creation of a true Single Market for maritime transport by reducing the administrative and customs formalities for EU goods transported between EU seaports. This discussion follows on from the recent Commission Communication on a Single Market Act II, which aims at tabling in spring 2013 a Blue Belt Package of legislative and non-legislative initiatives to simplify administrative and customs formalities for EU goods transported between EU seaports. 1 Recently, the results of the first major fact-finding study ever made in the EU on the organisation of port labour were published. One of the main findings of this study by Portius commissioned by the EC - is that dock labour is still one of the most dangerous professions in Europe, but also one where most market restrictions occur 2. Partly based on these findings, the EC made a new port regulation proposal. The regulation will essentially seek to establish common rules on market access to port services and financial transparency. The market access chapter will however not apply to cargo handling and passenger services. These services would be covered by forthcoming legislation on concessions and case law. The regulation proposal will not deal with dock labour either, this will be left to social partners in the context of the new EU social dialogue committee on ports (see also below) 3. Social dialogue State of the art (partners, priorities) Maritime transport (excluding ports) Represented in the Sectoral Social Dialogue Committee for Maritime Transport are employees' organisation European Transport Workers Federation (ETF) and employers organisation European Community Shipowners' Associations (ECSA). The Sectoral Social Dialogue Committee is currently focusing on: The implementation of EU directive 2009/13/EC implementing the social partners' autonomous agreement on ILO s Maritime Labour Convention (MLC, 2006). The Convention brings together, in one place, international minimum standards aimed at ensuring decent work for seafarers, while helping to provide a level playing field for quality shipowners operating under the flag of countries that have ratified the MLC, 2006 by promoting competitiveness 1 ECSA Newsletter European Community Shipowners' Associations, N 01/13. 2 Portius (2013). Port labour in the EU. Labour Market Qualifications & Training Health & Safety

10 through ensuring reliable and efficient shipping. The goal is to make sure that decent working conditions go hand in hand with fair competition. 1 The improvement of seafarer's recruitment and training Health and safety in the maritime transport. Ports On 19 June 2013, the Commission established a Social Dialogue Committee for Ports to allow employers and employees to discuss and agree on dock-work related issues. The committee gathers the following EU social partners: ESPO (European Sea Ports Organisation) and FEPORT on the employer' side, and ETF (European Transport Workers) and IDC (International Dockworkers Council) on the worker's side. The Commission will provide technical and administrative support to the work of this Committee and will evaluate progress in Recognising the particular challenges facing ports, this will be the first time that the Commission creates sector-specific legislation for this area. Prior to this, ports have been covered by general EU law on the freedom of establishment and competition rules 2. Achievements, difficulties and deficiencies Maritime transport (excluding ports) Main achievement of the Sectoral Social Dialogue Committee so far is the agreement concluded by ETF and ECSA on the Maritime Labour Convention (2008). Agreements have been achieved in important parts such as the hours of work and rest. Another achievement through social dialogue was the transposition of the labour conditions agreements in EU law. These agreements are considered as important social partner binding agreements. According to Commission staff, Social Dialogue in maritime transport is well established and running well. Social partners meet regularly and achieve a lot. It can be considered as one of the best working Sectoral Social Dialogue Committees around. This is probably due to the global nature of seafaring. This constructive Social Dialogue in the maritime sector seems to be very specific. The Commission is interested how social partners, in particular ETF, want to secure job opportunities in Europe and keep EU maritime sector vibrant, said Commission staff. ECSA considers the Sectoral Social Dialogue in maritime transport as positively dynamic, demonstrated by the agreements that have been closed. The work in this area has increased as the EC is attempting to gain more ground on social issues, whereas in the past the focus was mainly on safety. The contacts between ECSA and ETF have improved significantly, which is demonstrated through collaboration on EU-supported projects on career mapping 1 The MLC came into force on 20 August To date, more than 45 ILO Member States representing more than 70 per cent of global gross shipping tonnage have ratified the Convention. 2 EU Social Dialogue Liaison Forum, Social Europe. EU Social Dialogue Newsletter, May 2013, 10

11 and bullying at work. This improvement in the process, is mainly considered the result of good personal relations between the two sides. In terms of representation there is an evolution going on. Even though ECSA and ETF are the recognised social partners, subsector-specific organisations are emerging that represent for instance only shipping companies active in deep-sea or ferry-transport. So far, these organisations are not represented neither do they show a strong ambition in this direction. According to ETF, agreements have been achieved in important parts such as the hours of work and rest. Another achievement through social dialogue was the transposition of thee relevant parts of the ILO Maritime Labour Convention, 2006 into EU law. These agreements are considered as important social partner binding agreements. However, the ETF strongly deplores the fact that so far, it has not been possible to negotiate with the ECSA on the manning conditions of seafarers working onboard vessels carrying out regular passenger and ferry services in European waters. 1 Overall, a lack of binding outcomes coming from negotiating agreements was noted. Ports Since the Social Dialogue Committee in this sector only recently started, there is not much to say about achievements, difficulties and deficiencies. Experience/view of individual maritime transport companies In our view, social partners play a negative role, because they promote the maintenance of a protective social system. For this reason the company has some difficulties in recruiting new personnel and fostering turnover. Source: Enterprise survey by Panteia/PWC 1 According to ETF it is common knowledge that one of the last strongholds of EU seafarers employment is to be found on board vessels carrying out regular passenger and ferry services. But again, in this sector European seafarers also face gradual replacement with cheap labour. In particular, the discrimination on pay rates continues even amongst EU seafarers within certain Member States. And since the withdrawal of a proposed Directive on manning conditions by the European Commission in 2004, a legal instrument to address the problem of social dumping in the European ferry sector is long overdue. In the view of ETF, it is therefore highly advisable to resurrect a proposal on a revamped Directive on manning conditions for regular passenger and ferry services operating between Member States, in order to ensure a level playing field is set for all seafarers working on or engaged in exclusive and regular trade in the EU (irrespective of the nationality of the seafarers or the flag of registration of the vessel), and stop the downwards spiral in salaries and discriminatory practices on grounds of nationality and/or place of residence or flag of registration. Such long-awaited legislative framework should be based on the so-called ITF Athens policy, which aims to ensure that the employment conditions on-board a ship operating between different States are those of the country which applies the most favourable standards. Furthermore, an EU-wide duty of care should be acknowledged that should seek to extend the Athens Policy to apply to all intra - Community trade whilst preserving national flags. 11

12 2.2 Economic factors General context EU transport labour market The following economic factors play an important role for the EU transport labour market as a whole: General economic growth and the crisis: The current economic and financial crisis lowers demand for transport services and leads to the postponement or halting of investments in transport, infrastructure and business in general. It also leads to rationalisation and outsourcing. Furthermore, it creates high unemployment in some countries which puts pressure on labour markets. Geopolitical changes and globalisation: Geopolitical changes and globalisation of economies and trade lead to redistribution of transport flows, increasing transnational recruitment and impact on transport prices and wages. Regional differences in economic development & specialisation: Successful regions specialise in a number of economic areas, leading to specific development in transport Congestion hampering and redistributing growth: Congestion of road transport routes, but also specifically in urban areas, will increase and seriously affect accessibility Specific context EU maritime transport labour market As the transport sector has become increasingly competitive and global, many developments have taken place in the organisation of work in the port and maritime industry during the last decade, and these developments have also affected labour and social conditions in the industry. The importance of social dialogue between governments, employers and workers representatives for effectively managing new developments is now widely recognised; however, there is a need for strengthening the institutions and capacity for social dialogue between the parties. The difficulty with the globalisation trend is that labour markets are not separated but that one global labour market has emerged in which the suppliers of labour are acting globally, but also the demand itself (f.e. ship registry) is globally organised. Maritime transport (excluding ports) The magnitude of shortages of European seafarers depends on cycle of the economy. If general economy goes down, demand for transport, labour demand and labour shortages in the maritime sector also go down and vice versa. According to Commission staff, this is related to the levels of wages. However, wage levels are also decreasing, because of non-eu workers entering the EU job market. According to ECSA, so far there are no signs that the economic crisis has an impact on the maritime labour market. Obviously the companies are experiencing financial difficulties of their own and their clients, however. 12

13 Experience/view of individual maritime transport companies Of course, as a ferry operator, we encounter economic issues as the crisis, but it is relatively unproblematic. Source: Enterprise survey by Panteia/PWC Ports An important economic trend influencing the future of European ports is the economy shifting east (BRIC). Of relevance is also the development of the knowledge economy and the specialisation of the European industry Social factors General context EU transport labour market The following social factors play an important role for the EU transport labour market as a whole: Demographic development: Growing population (even if slowly, means more demand for transport of passengers and thus more demand for labour) and an ageing workforce (less supply of labour) High level of unemployment in many EU countries: This puts a downward pressure on wages and working conditions and may make that past training and formation of the unemployed becomes obsolete or forgotten. Underrepresentation of women in the workforce: As a result of difficult working conditions, stereotypical masculine image of the transport sector and disadvantageous work-life balance not many women are attracted to the transport sector. Continuous monitoring of employee performance: Increased control over employees performance - made possible by IT developments can lead to perceived pressure and possibly create stress. Violence in the public domain: Violence has also manifested in the transport sector and is particularly reported in the passenger transport sector. Organised crime: The transport sector suffers from crime increasing organised crime, especially in road freight transport and maritime transport (piracy). Development of a liability culture: Transport employees are facing legal action when incidents occur under their responsibility Specific context EU maritime transport labour market Prevention of drug and alcohol abuse is sometimes an issue. Competence requirements evolve for personnel serving on-board of all types of ships but particular care is given for oil and gas tankers. The training methodology is updated to follow technology developments including web-based learning Fatigue and overwork are one of the main causes of accidents in maritime transport, but also of the rejection of maritime-related jobs by young European 1 Port of Rotterdam Authority (2011). Port Compass. Port Vision

14 people. In particular there is an important problem regarding small coastal vessels with often understaffed crews. 2.4 Technological factors General context EU transport labour market The following technological factors play an important role for the EU transport labour market as a whole: Increasing use of IT Technological innovations Faster and larger transport means Intermodality: Making use of the advantages of different transport modes (e.g. between rail and road) that are neatly tuned to each other, thus keeping transfer time and cost (for passengers and freight) between the different modes at a minimum. These technological developments lead to: Efficiency & productivity gains, economies of scale and smarter mobility & logistics (less demand for labour or more demand if activity grows as a result of lower prices) Diversification of requirement leading to specialised jobs Upgrading of labour (more complex job requirements) Specific context EU maritime transport labour market Maritime transport (excluding ports) ECSA points at two kind of problems in technological respect: Despite ambitions and efforts in e-navigation and e-maritime, processes on board maritime vessels are still considered old-fashioned and timeconsuming, especially compared to other modes of transport. A study by ETF on training and recruitment indicated that potential crew members re-quire internet, social media access and other technology for personal use available on board 1. However, according to ECSA, this is not easily arranged. Ports Important technological trends influencing the future of European ports are the increasing scale and cargo volumes and the increasing use of ICT 2. 1 ETF (2011), How to enhance training and recruitment in the EU shipping industry. 2 Port of Rotterdam Authority (2011). Port Compass. Port Vision

15 2.5 Legal factors General context EU transport labour market The following legal factors play an important role for the EU transport labour market as a whole: Different social regimes between Member States: In general wages, working conditions and social security are less favourable in new Member States compared to the other Member States. As discussed in the main text, this may lead to social dumping of which little evidence, but a great number of actual suspicions and cases is available. Different social legislation between transport modes: Besides horizontal EU social legislation, transport modes have their own social regulations (especially in the field of (harmonisation of) training and certification and working times). EU specific regulations on the phenomenon of false selfemployment are still lacking. A problem remains the enforcement of the EU Directives at national level. Non-EU workers under lower standard legal regime: The co-existence of non-eu-workers carrying out intra-eu transport, who may choose as State of Residence a Member State with less favourable legal and social regimes, has an impact on average working conditions and remuneration packages. Although non-eu workers must always be subject for a start to the legislation of a Member State, they easily fall prey to illegal practices. Their weight on labour supply reduces the negotiating position of the other workers. Safety regulations to protect both transport workers and society: As a result of EU safety regulations the safety conditions for transport workers and society at large (i.e. passengers and other road users) have increased Specific context EU maritime transport labour market Social legislation General The EC continuously works towards strengthening the international regulatory regime, in particular by promoting the ratification and enforcement of international standards and through international agreements with third countries including social clauses and equal treatment clauses. The EC is also committed to improving the Community legal framework for workers in the seafaring professions. An analysis in 2007 indicated that their exclusion from the scope of some general directives might not be entirely justified insofar as they do not appear to contribute to the application of specific solutions, more adapted to the concrete situation of such workers. Of particular concern are the rights of seagoing workers to protection in the case of insolvency of their employer or transfer of undertakings, where a coherent approach should be promoted in order to enable them to exercise their rights effectively both at national level 15

16 and in Community-scale undertakings. The existing exclusions from the scope of the Directives regarding information and consultation also merit review. 1 EU regulations concerning (harmonisation of) training and certification Maritime transport (excluding ports) The maritime transport sector is part of a global market that upon the historic background of the freedom of the seas has developed a global governance system (International Labour Organisation ILO; International Maritime Organisation - IMO). This system is well developed with instruments such as the Social Agreement on ILO s Maritime Labour Convention (MLC) transposed into EU legislation by Directive 2009/13/EC and IMO s Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STWC) implemented by Directive 2012/35/EU. The enforcement of these international rules is ensured by EU legislation in particular under the new Flag State control and the Port state control legislation. In addition to ILO s MLC and IMO s STWC at global level, relevant regulation at EU level is Directive 2008/106/EC of the European Parliament and of the Council of 3 December 2008 on the minimum level of training of seafarers as amended in The training of seafarers plays a major role in maritime safety and in the protection of the maritime environment. It is therefore essential to define a minimum level of training for seafarers in the Union having regard to training standards agreed at international level. Main provisions of this Directive are the following: Minimum standards of training, certification and watch-keeping for seafarers serving on board Community vessels fixed by the International Maritime Organisation (IMO) Convention on standards of training, as revised in 1978 (STCW Convention) Applying to seafarers serving on board seagoing ships flying the flag of a Member State, with the exception of: warships or other ships owned by a Member State and engaged only in governmental, non-commercial service; fishing vessels; pleasure yachts not engaged in trade; wooden ships of primitive build. The categories of seafarer to which these rules relate are: masters, chief mates, deck officers and engineer officers, chief engineer officers and second engineer officers, certain categories of ratings (i.e. those working in an engine-room, forming part of a watch or serving on certain types of ship), and personnel responsible for radio communications. For certain categories of vessel, such as tankers and ro-ro passenger ships, the Directive lays down special training provisions (required for this type of vessel). It sets out the mandatory minimum requirements concerning the training and qualifications of seafarers serving on board these specific categories of vessel. The Directive also lays down rules on education and training in management of emergency situations, fire-fighting and the 1 COM (2007) 591 final. Communication from the Commission to the European Parliament, the Council, the European Economic And Social Committee and the Committee of the Regions. Reassessing the regulatory social framework for more and better seafaring jobs in the EU. 16

17 provision of medical aid, and for crew members responsible for catering services. Ports At EU level, there is no specific social legislation on port labour. The absence of specific EU regulations does not mean that port labour remains beyond the reach of EU law: First of all, national (including, as the case may be, regional or local) port labour regimes, including those based on collective agreements between social partners and port usages, must comply with primary EU law as laid down in the treaties. Secondly, it should be noted that a number of existing secondary EU legal instruments on maritime and social matters and non-discrimination, while not specifically elaborated with the port sector in mind, are equally applicable and indeed particularly relevant to that sector. Thirdly, national port labour regimes may be affected by fundamental European rules on the protection of human rights. 1 EU regulations concerning working conditions To protect workers health and safety, minimum rules are needed on working time in all EU Member States. For all the sectors, the basic Directive is Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time (in short: the Working Time Directive, see main text). European Community has set specific regulations on driving time and rest periods in road transport, railway transport and air transport. In maritime transport (excluding ports) there are specific regulations on working time. Also, there are some specific regulations on other working conditions (health and safety) and on port state control. Maritime transport (excluding ports): working time regulations Directive 1999/63/EC concerning the Agreement on the organisation of working time of seafarers concluded by the European Community Shipowners Association (ECSA) and the Federation of Transport Workers' Unions (ETF) in the EU. This Directive aims to protect the health and safety of seafarers by laying down minimum requirements with regard to working time. The agreement applies to all seafarers on board vessels registered in a Member State and/or flying the flag of a Member State of the European Union (EU). Main provisions are the following: The normal working hours standard is eight hours per day, with one day of rest per week and a rest period corresponding to leave. Member States may not authorise a less favourable collective agreement. Hours of work and rest of seafarers are laid down as follows: either the maximum hours of work which must not exceed: 14 hours in any 24-hour period or 72 hours in any seven-day period; or the minimum hours of rest which must not be less than: 10 hours in any 24-hour period or 77 hours in any seven-day period. The master of a ship may require a seafarer to perform any hours of work necessary for the immediate safety of the ship, persons on board or cargo, or for the purpose of giving assistance to other ships or persons in distress at 1 Portius (2013). Port labour in the EU. Labour market Qualifications & Training Health & Safety. 17

18 sea. The master may also suspend the schedule of hours of work or hours of rest until the normal situation has been restored. As soon as practicable after the normal situation has been restored, the master shall organise adequate periods of rest. All necessary measures must be taken to ensure compliance with the hours of work and rest, including the revision of manning levels of a vessel. Vessels must have a team with the sufficient number of personnel and skills required to ensure safety. Seafarers under the age of 18 are not permitted to work at night. Exceptions are possible to enable training organised under the framework of study programmes, if they are carried out in accordance with the rules on health and welfare at work. 1 No person under 16 years of age is allowed to work on a ship. In addition, the employment or engagement of seafarers under the age of 18 is prohibited where the work is likely to compromise their health or safety. All seafarers must: 1) possess a certificate attesting to their fitness for the work for which they are employed; 2) have regular health assessments. Maritime transport (excluding ports): health and safety regulations Directive 1999/63/EC is amended by Directive 2009/13 implementing the Agreement concluded by the European Community Shipowners Associations (ECSA) and the European Transport Workers Federation (ETF) on the Maritime Labour Convention, Main additional provisions are: Regulation 4.3 addresses health and safety protection and accident prevention. The standard urges the implementation and promotion of occupational safety and health policies and programmes on ships. The focus is on prevention, using the full scale of occupational safety and health measures, with special attention to conditions specific to maritime employment. Seafarers shall work only if they are trained/certified to perform duties and on personal safety. The minimum level of medical care on board a ship and ashore is set, including a standard. The agreement sets minimum requirements and standards for accommodation, recreational, catering facilities, and it also deals with contracts, repatriation, shipowners liability, on-board complaint procedures, etc. Maritime transport (excluding ports): port state control regulations Relevant in this respect are: Directive 1995/21 recast by Directive 2009/16 on port state control (PSC) and the forthcoming Directive amending Directive 2009/16 to enforce the MLC relevant provisions on PSC Directive 1999/95/EC of the European Parliament and of the Council of 13 December 1999 concerning the enforcement of provisions in respect of seafarers hours of work on board ships calling at Community ports. 1 Relevant in this respect is also Council Directive 94/33 EC of 22 June 1994 on the protection of young people at work. This Directive allows Member States, under certain conditions, to authorise night work and make derogations from the rules on daily and weekly rest in the shipping sector (see Arts 9.2 and 10.4). 18

19 The purpose of these Directives is to provide a mechanism for the verification and enforcement of compliance by ships calling at ports of Member States with Directive 1999/63/EC in order to improve maritime safety, working conditions and the health and safety of seafarers on board ships. Maritime transport (excluding ports): other Finally, the no more favourable treatment clause of the ILO s Maritime Labour Convention has to be mentioned. When inspecting a ship registered in the territory of or flying the flag of a State which has not signed ILO Convention No 180 or the Protocol to ILO Convention No 147, Member States shall, once the Convention and the Protocol are in force, ensure that the treatment given to such ships and their crew is no more favourable than that given to a ship flying the flag of a State which is a party to either ILO Convention No 180 or the Protocol to ILO Convention No 147 or both of them. Ports No specific new social legislation found. Achievements, difficulties and deficiencies in EU social legislation Maritime transport (excluding ports) ECSA is of the opinion that the legislative framework for the maritime sector is working well in general, apart form the criminalisation of seafarers in case of pollution caused by maritime vessels (see below). According to ETF, the sector is highly deregulated: There are a lot of regulations at international level (IMO, ILO, UN, etc.) but only a few are defined at EU level. The sector is therefore organised by regulations setting minimum standards. The high level of globalisation in maritime transport and the use of multinational crews, together with the proliferation of Flags of Convenience, make it difficult to effectively implement existing regulations in the sector. Seafarers are excluded from much of the EU social legislation 1. The presence in a number of Member States (e.g. Denmark, France) of second and/or international ship s registers among facilitates the existence of less strict rules in terms of working conditions. There is an international level of minimum standards (STCW Convention). The regulation of (harmonisation of) training and certification is therefore set at international level and then transposed to EU level through EU law. As a result, there are only minimum rules conform the international regulations. 2 1 See COM(2013) 798: proposal for a Directive on seafarers amending Directives 2008/94/EC, 2009/38/EC, 2002/14/EC, 98/59/EC and 2001/23/EC 2 According to ETF, it is interesting noting that it is in the remits of the European Maritime Safety Agency (EMSA) to investigate whether maritime education in labour supplying countries is in full compliance with the requirements as set in the STCW Convention. An example of this is the long-lasting investigation carried out by the EMSA and the competent Commission s services to assess the extent to which maritime education in the Philippines is effectively complying with the minimum standards for certification as set out in the STCW Convention. 19

20 ETF also points at the fact that some groups of workers are not sufficiently represented. This is not a real issue for vessels operating under European registers (and in particular under a national first register). In contrast, problems may arise on-board substandard vessels and vessels under FOC (Flags of Convenience). Over the years, the umbrella organisation in this field, the International Transport workers Federation (ITF), has been developing policies which form the basis of an ITF Standard Collective Agreement which sets the wages and working conditions for all crew on Flag of Convenience vessels irrespective of nationality. And compliance with ITF-recognised agreements is monitored by a network of over 130 ITF inspectors in ports throughout the world, and particularly in Europe. There might be situations where some crews operating in European waters be only covered by ILO minimum standards and according to ETF this is not acceptable. In any case, there is always room for improvement and any initiative should be undertaken to reinforce existing national collective bargaining mechanisms and oppose any attempt whatsoever aimed at deconstructing such mechanisms. Experience/view of individual maritime transport companies When it comes to legislation at EU and/or national level, there are not really pressing problems. We have four Dutch flagships and two English ones. We have to com-ply with the national regulations on labour and abide by the national inspections reports. On EU level we do not have so much issues. Main factors are legal ones as occupations in these branches are subject to regulatory constraints (for example safety regulations, list of placement at harbour office). At national level, recruitment incentives from legislation aren t enough for a large enterprise like ours. Employment legislation is overprotective and doesn t promote the hiring of high skilled profiles. It is difficult to recruit external staff, in particular seasonal employees because we must recruit them through lists of placement at harbour office. At EU level there aren t any regulations affecting the labour market in this sector. Source: Enterprise survey by Panteia/PWC Ports As mentioned above, at EU level currently there is no specific social legislation on port labour. In preparation of a new European ports policy, the European Commission commissioned the port law institute Portius to conduct an in-depth study of port labour in the twenty-two maritime Member States of the European Union. The study deals with the organisation of the labour market, training and health and safety, and it inventories a wealth of statistics, laws and regulations, employment systems and critical issues. It outlines possible future European policy actions, ranging from a do-nothing approach to the development of a special Port Labour Regulation. The European Commission offered the study as its input to the new European Sectoral Social dialogue Committee for ports. 1 1 Portius (2013). Port labour in the EU. Labour Market Qualifications & Training Health & Safety. 20

21 2.6 Environmental factors General context EU transport labour market The following environmental factors play an important role for the EU transport labour market as a whole: Implementation of (EU and national) sustainability policies: Emphasis on sustainability increases and affects job requirements in the transport sector. Modal shift and clean power transport: There is shift towards cleaner modes of transport and cleaner technologies within each mode with an increasing demand for public transport and electromobility. Eco-driving, consolidation of flows and smarter logistics: These developments affect both job requirements and labour demand in the transport sector. Employment potential of Green transport Europe needs to change to a green, low carbon and resource efficient-economy. Transforming the economy in this direction will provide an important source of jobs if the right skills are provided. The Commission has developed this subject under its Towards a job-rich recovery Communication 1. The Commission also participates in THE PEP: This UNECE partnership aims at exploring new options for job creation and economic development, and maximising at the same time the potential gains for environment and health through innovative transport policies Specific context EU maritime transport labour market Maritime transport (excluding ports) With new legislation in place that makes it easier to prosecute ship crew and put them in jail after environmental infringements, potential candidates to enter the maritime sector have become reluctant. A study by ETF on training and recruitment demonstrated the perceived reduced attractiveness and image of the sector, and fears of ending up in jail 2. Ports Important environment trends influencing the future of European ports are: Climate change Scarcity of raw materials Changes in the energy and fuel-mix Sustainability policies (importance of quality of life and living conditions) 3. Experience/view of individual maritime transport companies A specific environmental factor for our company, is the region itself. You need to feel at home in this part of the country. It offers rest and the sea, but it also has a decre asing population, shrinking number of facilities and all that comes with it. Another point is that we miss a university; many highly educated people rather stay in the more urban parts of the country. Source: Enterprise survey by Panteia/PWC ETF (2011), How to enhance training and recruitment in the EU shipping industry. 3 Port of Rotterdam Authority (2011). Port Compass. Port Vision

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23 3 EU maritime transport labour market trends This section describes trends in demand for and supply of labour on the EU maritime transport labour market. 3.1 Trends in demand General trends in demand The following trends hold for the EU transport labour market as a whole: Employment (number of jobs): Following upon a long period of employment growth, in 2009 and 2010 in the EU 27 the transportation and storage sector showed a decrease in employment. In 2010, the total number of occupied persons in the transportation and storage sector (excluding postal and courier activities) amounted to 9,344,700 (against 9,433,500 in 2009 and 9,571,00 in 2008). In 2010, more than half of the occupied persons (56.4%) worked in road transport and nearly a third in logistics (29.0%). Labour mobility: As concerns labour mobility, people can move from job to job within the same transport company, from company to company within the same transport (sub)sector, between different (sub)sectors and/or between different regions or countries (geographical mobility). Number of vacancies: Compared to employment figures, vacancies are much more vulnerable to cyclical factors and economic conditions and must be interpreted as such. For the EU-27 the figures point towards a decline of labour demand in transport for the period No recent figures on vacancies are available. Expectations are that after the economic crisis labour demand will rise again. Job requirements/ job types: In the transport sector, there is a general trend towards job polarisation (employers mainly look for highly or lowly qualified workers, not for medium qualified workers). Furthermore, demand for IT personnel and multi-skill jobs increases. At all skill levels, most jobs in demand will be more and more characterised by non-routine tasks which are not easily replaced by technology or organisational change. Prognoses labour demand 2020: Future employment trends in transport depend on a number of factors such as the development of trade and economic activities, an ageing population and people's mobility patterns, technological developments, energy availability and prices, measures towards sustainable transport, alternative transport modes etc. In the period total employment in the transport and storage sector in the EU-27 is expected to decrease with annually 0.1%; the decrease being concentrated in non-transport related labour. Significant employment losses are expected in warehousing and support activities. Land transport is on average, whereas employment increases in water transport and air transport. Overall, employment of transport-related occupations is expected to remain constant over the next decade. Results per occupation are closely related to the employment results for individual sectors of industry. Results per 23

24 occupation are closely related to the employment results for individual sectors of industry. For instance, the significant increases for air controllers, air traffic safety technicians, aircraft pilots, conductors (to some extent) and travel attendants are closely related to the employment increase in air transport. Similar reasoning applies to ships personnel. Conversely, employment of land transport related occupations is expected to decrease Specific demand trends maritime transport Employment development (number of jobs) The figure and table below illustrate the development of employment in maritime (sea and coastal) transport. Figure 3.1 Employment development (yearly change in occupied persons, in %) in water transport and transportation and storage (excl. postal and courier activities) as a whole, EU 27, ,00 5,00 4,00 3,00 2,00 1,00 0,00-1,00-2,00-3, transportation and storage excl. postal and courier activities water transport Source: Panteia based on Eurostat In 2010, maritime transport accounted for 2,2% of the employment in the sector transportation and storage (excl. postal and courier activities) as a whole in the EU 27. That year, in total 206,900 persons were occupied in maritime transport (against 209,200 in 2009 and 208,300 in 2008). A small majority (120,800) of employment in maritime transport in 2010 is in freight transport and a large minority (86,100) in passenger transport. Looking at water transport as a whole, figure 3.1 shows that employment fluctuates more than in the sector transportation and storage (excl. postal and courier activities) as a whole. In general, the employment development in water transport is more favourable than 1 in the transport sector as a whole. However, this does not go for each year. 1 Céreq 2012, Analyse statistique de l emploi et des caractéristiques démographiques du personnel navigant du transport maritime (années 2009 et 2010) 24

25 Table 3.1 Employment (occupied persons, in 1000s) in water transport (sea/coastal and Total inland) and transportation and storage (excl. postal and courier activities) as a whole, EU 27, 2008, 2009 and Change (in 1000s) 9571,7 9433,5 9344,7-88,8 Water transport 259,2 258,9 256,5-2,4 - Sea and coastal passenger 91,2 90,3 86,1-4,1 - Sea and coastal freight 117,1 119,0 120,8 1,8 Total sea and coastal 208,3 209,2 206,9-2,3 - Inland passenger 24,2 23,6 23,1-0,5 - Inland freight 26,8 26,1 26,5 0,4 Total inland 50,9 49,7 49,6-0,1 Source: Panteia based on Eurostat Within water transport 1 there s a similar age distribution as in land transport (see figure 3.2). The share of young workers (15-24 years of age) is less than the EU overall average. The share of workers aged equals approximately the EU overall share of workers aged and the share of workers aged 50 years or older exceeds the EU overall share. Ageing seems to be an issue. Figure 3.2 Age of employees in water transport (2010) Source: Panteia, based on Eurostat LFS. 1 Data includes IWT, but Maritime dominates the figures in terms of averages. 25

26 In water transport the share of male workers largely exceeds the share of female workers. 80% of all employees in water transport are male (see figure 3.3). Figure 3.3 Gender of employees in water transport (2010) Source: Panteia, based on Eurostat LFS. Eurostat includes port employees in warehousing and support activities. This makes it impossible to make a reliable estimate based on this source that is used throughout the report. Available studies use different sector definitions. According to EESC, the major challenge in the maritime transport sector is the long-term decline in the employment of European seafarers with the associated loss of European maritime know-how. Flags of convenience (FOCs) and low-cost crews from developing countries are still being used. International trade by European-owned and controlled vessels is dominated by an almost entirely nondomiciled crew, particularly for ratings 1. Labour mobility People opt for a maritime career for a variety of reasons, e.g. personal interest and idealism, attractive remuneration and good career opportunities 2. Most of them, however, do not see their career at sea as a lifetime career. Although at present officers stay at sea for a longer period than in the past, most of them have returned ashore by the time they are 35. The decision to return ashore pertains mainly to shore-based career opportunities, mostly within the maritime cluster. In general, seafarers develop skills and qualifications that make them attractive to shore employers. A career at sea opens up positive career opportunities ashore that can better be matched with social and family life. 3 1 EESC (2011), TEN/445. Social aspects of EU Transport Policy. 2 Southampton Solent University, ECSA, ETF (2009) The Mapping of career paths in the maritime industries 3 European Parliament (2009), The Shortage of Qualified Personnel in Maritime and Inland Waterway Transport. 26