The Hindu Business Line : Shipowners association in a spot over seafarers' union row

Realising that the tussle between the two unions was becoming more strident and that a strike would have a serious impact on ship operations, INSA board is veering around to the option of approaching the court to end the stalemate .

Mumbai Sept. 8

THE Indian National Shipowners Association (INSA), the apex body of shipping lines, appears to be caught in a cleft stick over the issue of new wage negotiations for the crew of ships belonging to its members.

This comes in the wake of two unions, representing the Indian seafarers, locking horns, each claiming that it is the majority union and it should be involved in the wage negotiations.

Caught in the midst of this tussle between the National Union of Seafarers of India (NUSI) and the Kolkata-based Forward Seamen's Union of India (FSUI) over the majority status, the INSA appears to have little options left other than to move the court, praying for an early settlement of the dispute.

Informed sources said the INSA board, which met here a few days ago, discussed the issue at length, especially in the light of the recent storming of its office by representatives of both the unions.

It was the FSUI members who first stormed the INSA office on August 18, demanding that the association negotiate the new wage pact with it, as it was the majority union and had in fact threatened to resort to a strike on board all ships that belonged to the INSA members if its demand was not met.

This provoked the members of NSUI, which is the recognised union of the National Maritime Board, to storm the INSA office a few days later, demanding that wage negotiations should be held with its representatives.

Apparently realising that the tussle between the two unions was becoming more strident and that a strike by any of the unions would have a serious impact on ship operations, resulting in significant losses to the ship owners, including Shipping Corporation of India, Great Eastern Shipping Co Ltd and Essar Shipping Ltd, the INSA board is veering around to the option of approaching the court to end the stalemate.

The association is also aware that if it were to choose one of the unions to negotiate the new wage pact, the other union could queer the pitch, affecting ship operations. " Under the present circumstances, legal recourse appears to be the safest and best bet for INSA," a shipping analyst pointed out.

Even while this stalemate continues, the wage negotiations between INSA and the Maritime Union of India, which controls the maritime officers employed on Indian ships, are also facing initial hiccups, although the union had softened its stand recently.

Initially, the union had been asking for a 50 per cent rise in the monthly emoluments of its members and was prepared for a showdown, but subsequently it was said to have prepared to accept anything above 9.5 per cent given to ratings (crew members).

Concluding wage agreements both for the crew and officers holds added significance for INSA, as the wage bill constitutes an important part of the expenditure for operating a ship and plays a key role in deciding the competitiveness of Indian ships.

As a matter of fact, Indian ship owners are at a disadvantage compared to their foreign counterparts, as their average wage bills are more than the latter. For example, the owner of an Indian bulk carrier has to shell out a total monthly wage bill of $45,883, as against $39,800 that is spent by foreign ships.

Similarly, for a LPG carrier, the Indian owner has to allot $42,979 for monthly wage bill, while his overseas counterparts can operate the same category of vessel by paying monthly wages of $37,200 to the crew and officers.

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