The Joint Maritime Committee (JMC) of the Dutch, German, Nordic and Norwegian Chambers of Commerce expresses deep concern regarding the removal of the escrow provision in the Senate version (Senate Bill No. 2221) of the Magna Carta for Seafarers bill.
“The exploitation of the seafarer compensation system has been identified as a major obstacle to the employment of Filipino seafarers.” Says Mr. Tore Henriksen, Chairperson of the European Joint Martime Committee “This is primarily attributed to the flawed system requiring shipowners to pay in full before cases are finally settled in the judicial system.”
The Magna Carta for Seafarers bill at the House of Representatives includes an escrow provision designed to protect workers and employers from “ambulance chasers” which are unscrupulous lawyers who encourage those with work-related injuries to file cases against their employers, seeking exorbitant damages.
The gravity of the problem is underscored by the astonishing amount of PHP 2.5 billion in documented decisions of the National Labor Relations Commission (NLRC) and the National Conciliation and Mediation Board (NCMB) that have been reversed or modified on appeal but whose judgment awards were not returned to the shipowners have reached the staggering amount of Php 2.5 billion.
Both seafarers’ unions, the Associated Marine Officer’s and Seamen’s Union of the Philippines (AMOSUP) and the United Filipino Seafarers (UFS), as well as global employers’ organizations such as the International Chamber of Shipping (ICS) and the International Maritime Employers’ Council (IMEC), agree that the current system falls short of its intended purpose and necessitates change.
On 31 May, European envoys expressed their concerns regarding the removal of the escrow provision in the Senate version.
“We commend the House Committee on Overseas Migrant Workers (COWA), chaired by Congressman Salo, for their diligent efforts in mitigating the exploitation of the seafarer compensation system.” Mr. Henriksen further emphasized. “The house version seeks to establish an escrow arrangement that aligns seafarer claims with the Rules of Civil Procedure of the regular courts. The JMC acknowledges the genuine care demonstrated by the majority of lawmakers for the welfare of Filipino seafarers, as evidenced by the passage of this bill through Congress.”
The Joint Maritime Committee appeals to all stakeholders, industry players, and lawmakers to lend their support in reinstating Section 51 into Senate Bill 2221. By doing so, they will make a substantial contribution to enhancing the livelihood and prospects of Filipino seafarers while safeguarding their rights and fair compensation.
The JMC together represent the interests of a large segment of the maritime private sector community of Europe (Denmark, Finland, Germany, Iceland, the Netherlands, Norway and Sweden). It is represented by the Dutch Chamber of Commerce in the Philippines, the German-Philippine Chamber of Commerce, the Nordic Chamber of Commerce in the Philippines and the Philippines-Norway Business Council.