In a landmark victory, Australia's highest court ruled that a Bahamian-registered vessel, CSL Pacific, owned by a Canadian-based company must pay its crew Australian wages and other employment benefits.
The decision was handed down last Thursday, when the court ruled CSL Pacific Shipping, a part of Canada Steamship Lines, is subject to Australia's more liberal labour laws when in Australian waters.
Director of the Bahamas Maritime Authority, John Mervyn Jones, said a similar ruling has recently been applied to non-European seafarers serving on foreign ships trading between ports in the European Union.
The ruling, coming as it does in the wake of the Aug. 2 collision between two Bahamian mail boats that killed four people and injured 25 others, again focuses on Bahamian-owned and or registered vessels. The Bahamas ranks in the top five largest ship registries in the world.
However, Mr. Jones said the ruling of the Australian highcourt "does not concern safety standards," which are regulated by international conventions, to which The Bahamas is a signatory.
"The Australian ruling will apply to any foreign ship trading within Austalian waters, and is not expected to have any effect on the reputation of The Bahamas," Mr. Jones said. "The safety standards as measured by Port State Control in various parts of the world show The Bahamas to have amongst the highest standards."
Ships that are registered in The Bahamas and engaged in international voyages are subject to the applicable international conventions, which govern safety of ship, crew, and passengers, as well as protection of the environment.
"It is the responsibility of The Bahamas to enforce these conventions," Mr. Jones said. "This is done by ensuring that every Bahamian ship is inspected once a year by a Bahamas appointed internationally qualified marine inspector."
Mr. Jones said the reports of the inspector are viewed by the Bahamas Maritime Authority's technical staff
In addition, Bahamas-registered ships are subject to random inspections in various ports around the world.
"Any deficiencies found are reported to regional headquarters and to the Bahamas Maritime Authority and the necessary action is taken."
The High Court of Australia's seven justices ruled unanimously that the nation's labour court, the Australian Industrial Relations Commission (AIRC), had the power to order the ship's Ukrainian crew should receive Australian pay and conditions, the Associated Press reported.
The decision upheld a previous ruling by AIRC in a case brought by three shipping unions. That decision had been appealed to the High Court by CSL Pacific Shipping, which is incorporated in Barbados, it said.
"It means that foreign ships come under the jurisdiction of the AIRC for wages and conditions of employment and they can be roped into (Australian labour laws) regardless of flag, nationality or national location of the business," said Paddy Crumlin, national secretary of the Maritime Union of Australia.
CSL Pacific Shipping is part of the Canada Steamship Lines group, one of Canada's largest shipping companies. It is majority-owned by Canadian Liberal Party politician and former finance minister Paul Martin, the man expected to succeed Jean Chretien as prime minister.
"Mr. Martin bowed to accusations in March this year that his shipping interests conflicted with his political position and announced he was giving up control of his multimillion-dollar shipping business to his sons, a move opponents branded as cosmetic," it was further reported.
According to a summary of the ruling issued by the High Court, CSL Pacific Shipping acquired an Australian ship from CSL Australia, renamed it the "CSL Pacific" and registered it in The Bahamas.
"CSL Pacific" recruited a crew in Ukraine and traded in North Asia before returning to Australia in October, 2001, under charter to CSL Australia.
It operated in Australian waters under permits that have no stipulations on pay and conditions for crew, "which were less than (Australian) rates," the court's summary statement said.
CSL Pacific argued the Australian Parliament did not have the power to make laws that regulate employer-employee relations when the employer has no presence in Australia and the staff are foreign seafarers.
By LINDSAY THOMPSON, The Nassauļ¾ Guardian
