The Hindu Business Line : Short on crew... pay up and sail

IN a decision that has baffled shipping companies, the Government has asked them to pay for any shortfall in the mandatory number of officers on board.

Till now, if a shipping company fails to employ the mandatory number of officers on a ship, for whatever reason, it had to get an exemption from the Mercantile Marine Department.

Normally, the company makes a request for dispensation of officers, which could be granted or rejected by the department.

As per a new directive, shipping companies have to pay the Government an amount equal to the actual salary of the officer for whom the dispensation is sought. In other words, if a ship has to sail with one engineer less than the mandatory number, the company has to pay the wages of that officer to the Government.

The order has come at a time when most shipping lines are finding it difficult to get experienced officers, said a shipping company official.

According to the Director-General, Shipping, the directive has been issued to prevent deliberate attempt by some shipping lines to cut wage cost.

"For safe operation of ship, it is of utmost importance that the ship is manned by qualified officers and in full complement," a directive issued to shipping companies by the Director-General of Shipping said.

But shipping lines say the order has come at a time when the industry is facing a severe manpower shortage. "We are in a lose-lose situation," said a shipping company official.

The circular, which came into force from April 1, said, "It has been brought to the notice of the Directorate that some of the shipping companies might be getting undue financial benefits due to dispensation, which adversely affect the employment opportunities of qualified officers as well as jeopardise the safe operation of the ship.

"To discourage this tendency, if at all prevalent, it has been decided that, henceforth, such dispensation will be considered, provided the maximum basic of the relevant pay scale of the rank for which dispensation is required, as per the Maritime Union of India (MUI) agreement, is paid to this Directorate by the shipping company concerned."

It also clarified that the maximum basic pay will have to be paid for the category of officers for whom the dispensation is sought.

For instance, in case dispensation is sought for a chief engineer or a second engineer, the maximum MUI pay scale will have to be paid, the circular said.

If the payment made is less than the MUI-agreed pay scale, the company will be subject to necessary action, including a levy of 10 times the short payment, the circular said.

Shipping companies plan to take the issue with the Shipping Ministry.

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