EXPLANATORY STATEMENT
Shipping Registration Act 1981
Shipping Registration (International Register—Minimum Wages) Determination 2016
Subsection 61AE(3) of the Shipping Registration Act 1981 (the Act) provides that the Minister must, by legislative instrument, determine the amount of wages of seafarers performing particular types of work on board ships registered in the Australian International Shipping Register (the International Register). The wages apply to a seafarer working, or proposing to work, on board a ship that is used to engage in international trade.
Subsection 61AM(4) of the Act requires the Minister by the Shipping Registration (International Register—Minimum Wages) Determination 2016 (the Determination) to repeal the Australian International Shipping Register (Minimum Wages) Determination 2012 which only set out wage amounts until 31 December 2014.
This Determination is a legislative instrument for the purposes of the Legislation Act 2003.
Purpose
The purpose of the Determination is to set out the minimum amount of wages of seafarers performing particular types of work.
Other
This Determination does not apply, adopt or incorporate other matter by reference.
Background
Under subsection 15A(b), one of the objects is to provide an internationally competitive shipping register to facilitate the long term growth of the Australian shipping industry. A core component of the Act that gives effect to this is permitting operators of International Register ships to access mixed crewing arrangements, thereby enabling the employment of foreign seafarers at internationally competitive rates and conditions.
In order to protect the interests of seafarers, however, the Act contains a number of provisions in relation to seafarers’ employment terms and conditions on International Register ships. Subsection 61AE(1) of the Act requires the work agreement of a seafarer to specify the amount of the seafarer’s wages, or the method for working that out.
Subsection 61AE(2) provides that the amount of the wages must not be less than the relevant amount determined by the Minister under subsection 61AE(3).
In turn, subsection 61AE(4) provides that the amount of wages determined by the Minister must not be less than the amount of wages specified in the International Transport Workers’ Federation Uniform Total Crew Cost Collective Agreement (the ITF Template Agreement).
The amounts of wages specified in the Determination are the same as those in the ITF Agreement at the time of making the Determination. The work classifications in the table in section ^5 are the same as the classifications in the ITF template agreement, and this consistency is necessary to ensure that the draft determination complies with subsection 61AE(4) of the Act.
Details of the Determination are in the Attachment.
Consultation
No formal consultation was undertaken specifically in relation to this Determination as it is a replacement of the Australian International Shipping Register (Minimum Wages) Determination 2012 which only provided wage amounts until 31 December 2014. The ITF Template Agreement is internationally recognised as the standard for wages and is well known to industry.
There has never been a vessel registered on the Australian International Shipping Register.
Regulatory impact analysis
Before this Determination was made, its expected impact was assessed using the Preliminary Assessment tool approved by the Office of Best Practice Regulation (OBPR). That assessment indicated that it would have no or low impact on business, individuals and the economy.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Shipping Registration (International Register—Minimum Wages) Determination 2016
The Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Determination
The Determination sets out the minimum amount of wages of seafarers performing particular types of work on board ships registered in the Australian International Shipping Register (the International Register). This is a requirement under subsection 61AE(3) of the Shipping Registration Act 1981.
Human rights implications
Article 7 of the International Covenant on Economic, Social and Cultural Rights protects the right of workers to the enjoyment of just and favourable conditions of work. This includes fair wages, equal remuneration for work of equal value, safe and healthy working conditions, equal opportunity in promotion, and rest, leisure and reasonable limitation of working hours and periodic holidays with pay, as well as remuneration for public holidays.
The Determination protects the right of workers to just and favourable conditions of work. In the absence of this Determination, there would be no minimum safety net for the amount of wages payable to seafarers working on board ships registered in the International Register.
Conclusion
The Determination is compatible with human rights because it is part of a legislative framework that protects the human rights of seafarers on International Register ships.
Minister for Infrastructure and Transport, the Hon Darren Chester MP
ATTACHMENT
Details of the Shipping Registration (International Register—Minimum Wages) Determination 2016
Section 1 – Name
Section 1 provides that the name of the Determination is the Shipping Registration (International Register—Minimum Wages) Determination 2016.
Section 2 – Commencement
Section 2 provides that the Determination commences on the day after it is registered.
Section 3 – Authority
Section 3 provided that the Determination is made under subsection 61AE(3) of the Shipping Registration Act 1981.
Section 4 – Schedules
Section 4 states that the instrument specified in the Schedule to this Determination is repealed.
Section 5 – Amount of wages
Section 5 provides for a seafarer performing the work of a classification mentioned in column 1 of the table is to be paid, in US dollars, per calendar month the amount stated in column 2 of the table.
Section 6 – Repeal of this instrument
Section 6 provides that this Determination is repealed at the end of 31 December 2017 to align with the cessation of the ITF template agreement.
Schedule 1
The schedule repeals the Australian International Shipping Register (Minimum Wages) Determination 2012.