If it were to become law, the Seafarers' Wages Bill would guarantee that seafarers who work on ships that visit UK ports at least 120 times per year will be compensated at a rate that is at least equal to the UK national minimum wage for their work in UK waters.

On November 8, 2022, the Bill, which is 184 of the session of 2022-23, received its first reading in the House of Commons. On December 19, 2022, MPs approved the second reading of the Bill. The Bill is now at committee stage and those with relevant expertise and experience or a special interest in the Bill can submit their views prior to the Public Bill Committee scrutinising the Bill when they are expected to meet on 17 January 2023.

The Bill's Background: What is the national minimum wage?

The National Minimum Wage Act of 1998 was the first legislation to establish the national minimum wage (NMW).

Since the National Minimum Wage (Offshore Employment) (Amendment) Order 2020 was passed, all seafarers on vessels operating on domestic UK routes are subject to the NMW. It applies whether the vessels were UK-registered or not and even if the seafarers are not ordinarily resident in the UK, but not to seafarers working on international routes unless their ship is registered in the UK and they are ordinarily resident in the UK.

The NMW for those aged 18 to 20 increased to £6.83 on April 1, 2022, while the NMW for those aged 21 to 22 increased to £9.18. For those over the age of 23, the UK National Living Wage is £9.50.

For comparison, the International Labor Organization's recommended basic minimum wage for an "able seaman" as of July 1, 2022, is $US 648, or roughly £550, per month. Under the Maritime Labour Convention, this is a non-binding international recommendation for a minimum wage for seafarers.

This is based on seafarers working eight hours per day, which equates to a 48-hour work week and a rate of £2.66 per hour. Under the UN Convention on the Law of the Sea, international maritime law has made it difficult for the UK Government to enact legislation requiring seafarers on vessels serving international routes to and from UK ports to earn a legally binding minimum wage.

Redundancies on P&O ferries

P&O Ferries Ltd. made 786 seafarers redundant on March 17, 2022, without prior notice or consultation. The company announced that it would transition to a new business model in which it would employ lower-paid agency workers to crew its ships.

According to P&O CEO Peter Hebblethwaite's testimony to a select committee, the new crewing model would pay agency workers an average of £5.50 per hour. He stated and that the lowest hourly rate would be £5.15.

The Government’s nine-point plan for seafarers

On 30 March, 2022, the Government announced the implementation of nine measures in response to the layoffs at P&O Ferries.The eighth of these measures was a piece of legislation that gave British ports the authority to deny ferries that don't pay their workers at least what the UK National Minimum Wage costs.

A Harbours (Seafarers' Remuneration) Bill was mentioned in the background briefing notes for the Queen's Speech in 2022. The Seafarer's Wages Bill was later given to this.

On 10 May 2022, the same day as the Queen’s Speech, the Government opened the consultation Conditions for harbour access and seafarers’ pay-rates: scope and compliance. Responses expressed concern about the need for ensuring consistency with international maritime law, and the role to be played by port authorities in the Bill.

What is the goal of the bill?

The goal of the Bill is to make sure that seafarers on ships that visit UK ports at least 120 times a year are paid at least the same as the national minimum wage in the UK for their work in UK waters. This would apply regardless of the nationality of the seafarers or the flag of the ship.

Seafarers who work on international routes to or from UK ports do not currently qualify for the national minimum wage because they do not typically reside in the UK. try not to work basically somewhat in the UK; or then again work on non UK-hailed ships.

If the bill were to pass, this would mean:

• Harbour authorities would have the power to request ship operators covered by the Bill to provide a declaration that their seafarers are paid at a rate at least equivalent to the NMW for their work in the UK or its territorial waters, if they did not already qualify for the NMW (Clause 3 of the Bill)
• Harbour authorities would be able to charge operators who failed to provide a declaration showing the equivalent rates (Clause 7)
• Harbour authorities could refuse access to the harbour if the operator failed to pay the surcharge (Clause 9)
• The Secretary of State for Transport could appoint investigators from the Maritime and Coastguard Agency (MCA) to verify operators are complying (Clause 6)
• The Secretary of State would have powers to direct harbour authorities on whether to impose a surcharge and how much it should be (Clause 11)

Commentary on the Bill

Shipping and Port Representatives have welcomed the Bill’s intentions but have commented it could potentially undermine existing international agreements.

Although the union Nautilus applauded the Bill, it expressed concern that operators may "port hop" to circumvent regulation if it relates to ships docking at a specific port.

The National Union of Rail, Maritime, and Transport Workers (RMT) urged the Government to support Labour peers' amendments in the Lords to include roster patterns, fair pay, and legal protection for seafarers in the scope of the Bill (see amendment 5 in section 5.3 of this paper).

Since the announcement of its intention to legislate and the redundancies at P&O Ferries, the government has responded to a number of written questions regarding the issue of seafarers' wages. It has reiterated that the Bill aims to pay seafarers with close ties to the UK at least the same as the National Minimum Wage in the United Kingdom.