The Hindu Business Line : Seafarers' stir threat worries shipowners

The National Seafarers Union of India has served notice to ship-owners that its members will go on strike from August 31 if the Government does not initiate efforts to bail out the Seamen's Provident Fund.

WIDESPREAD consternation has gripped both Indian ship-owners and foreign ship-owners employing Indian seafarers on their vessels over the notices recently served by the National Union of Seafarers of India (NUSI), threatening to go on strike from August 31.

Through the action, the NUSI is seeking to press its demand for Government support to recoup the losses suffered by Seamen's Provident Fund (SPF). NUSI, one of the two unions representing the Indian seafarers, has served the notices to the Government, besides Indian and foreign shipping lines.

Industry observers feel that given the NUSI's clout in the seafarers' community, the strike could deliver a serious blow to shipping operations in India, with wider ramifications in India's sea-borne trade. However, a few Indian ship-owners are not attaching too much significance to the strike threat, stating that it would not have much of an impact on their operations.

While foreign ship-owners are reported to have become apprehensive about making further contributions to the SPF, it is feared that the strike may cause an adverse impact on fresh employment opportunities for Indian seafarers on foreign-owned vessels.

"There is fierce competition in the employment prospects in the ratings category, and there is abundant supply available globally. Any commercial loss to foreign ship-owners and managers as a result of the agitation will cause an adverse impact on the employment opportunities for Indian seafarers," a representative of foreign ship-owners pointed out.

The issue for the agitation pertains to the SPF suffering a loss of over Rs 92 crore in the `Home Trade' securities scam of 2002. Following persistent demand from the seamen's unions, the then NDA Government had pieced together a scheme to bail out the troubled SPF. According to Mr Abdul Gani, NUSI General- Secretary, the scheme was approved by the Shipping Ministry and was awaiting Cabinet approval when elections were announced.

"The new Government is yet to take up the issue. We have waited long enough. The money was lost because of negligence on the part of Government officials. If the Government can bail out UTI, it should do so for SPF, which is a statutory fund," Mr Gani told Business Line.

Hearing about the strike notice, the Foreign Owners Representatives and Shipmanagers Association said this had "sounded the alarm bells for foreign ship owners and managers who offer employment opportunities to Indian seafarers. Our members are receiving frantic communications from their counterparts and principals abroad, expressing concern over the outcome of this action, as it could mean huge commercial losses for them."

In fact, of the three associations registered with the Directorate General of Shipping — FOSMA, Indian National Shipowners Association (INSA) and Maritime Association of Ship Owners (MASSA) — FOSMA accounts for about 45 per cent of the seafarers' jobs.

MASSA, which provides employment to Indian seafarers on foreign and Indian flag ships with members in over 30 shipping companies worldwide, has also echoed similar sentiments, stating that if the Government did not thrash out the issue, Indian seamen may face the loss of further employment "for no fault of theirs".

Even the International Transport Workers Federation (ITF), comprising over 600 transport trade unions in 138 countries and representing about five million workers in every branch of transport, has taken up the issue. In a letter to the Prime Minister, the ITF has pointed out that the loss suffered by SPF was made up of the savings and retirement benefits of Indian seafarers.

"The scam had tarnished the image of Indian shipping industry at international level, as substantial contributions to the fund had been made by foreign ship-owners, who had been persuaded by our affiliated union, NSUI, to do so to protect the interests of its members. "

Even as they are preparing to counter the impact of the threatened strike, Indian shipping industry representatives also feel that the Government should avert the strike by settling the issue in the interest of the industry.

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