Employment Bill [HL]

moved Amendment No. 29: 29: After Clause 13, insert the following new Clause— ““Application of the national minimum wage to mariners (1) The National Minimum Wage Act 1998 (c. 39), section 1 (workers to be paid at least the minimum wage) is amended as specified in subsection (2) and section 40 (application of the wage to mariners) is amended as specified in subsection (3). (2) In section 1(2)(b) the words ““or, in the case of mariners, is a person satisfying either of the provisions of section 40”” are inserted after the words ““under his contract””. (3) For section 40 (mariners) there is substituted— ““40 Mariners The provisions referred to in section 1(2)(b) are that the person is employed to work on board— (a) a ship registered in the United Kingdom under Part II of the Merchant Shipping Act 1995; or (b) any other ship— (i) trading or operating solely between United Kingdom ports; or (ii) trading or operating solely between United Kingdom ports, anchorages, roadsteads or offshore installations; or (iii) trading or operating solely between the United Kingdom and the Isle of Man or the States of Jersey or the States of Guernsey; or (iv) trading or operating solely between United Kingdom ports, anchorages, roadsteads or offshore installations and EU (or EEA) ports, anchorages, roadsteads or offshore installations on regularly scheduled passenger or freight services at any time they are within United Kingdom territorial waters.”””” The noble Baroness said: My Lords, in Committee I sought to get the Government to agree to an amendment designed to deal with the anomalies that exist in the payment of the national minimum wage to seafarers. The amendment that I moved urged that the national minimum wage be paid to seafarers on all UK-registered ships and on all vessels trading in UK territorial waters. Like the union, I was particularly concerned about the exploitation of foreign workers on British ships and the fact that they sometimes receive wages that are very much less than the national minimum wage, even though they work next to British workers who receive the national minimum wage. The union rightly thought that that was wrong in principle and the amendment sought to deal with it. The Government opposed my amendment on a number of grounds. There were the expected arguments about the possibility that foreign ships would flag out; those arguments are usually made by shipping employers whenever any improvement in terms and conditions of employment are suggested. It was also argued that to try to enforce the national minimum wage on all ships in UK territorial waters would not be compatible with the UN Convention on the Law of the Sea and customary international law, primarily because it would infringe the right of international passage. Moreover, it was argued that the amendment would mean that the UK Government would have to pursue ships that might only occasionally call at UK ports. However, the Minister agreed that there were anomalies that should be considered, notably that, because of the distinction made between UK internal waters and UK territorial waters, the national minimum wage became payable in respect of the sea between Scotland and the Inner and Outer Hebrides but not in respect of the sea between Scotland and Shetland. The Minister agreed that other, similar anomalies existed. Following the debate in Committee, my noble friend Lord Wedderburn and I had a meeting with union representatives. The union concerned has had further discussions with its lawyers and the wording now before the House is the result of those discussions. The union believes that the ships that are of primary importance for national minimum wage coverage are ferries and cargo vessels trading regularly from UK ports. We believe that the revised wording deals with the main arguments against our original amendment, while attempting to deal with the anomalies that the Minister agreed existed as far as present practice is concerned. It may be argued that the wording could still risk encouraging what is known as flagging out by foreign ship owners unwilling to accept the obligation to pay the minimum wage. We believe this to be a form of blackmail, which the Government should not accept. Shipping is an important industry; indeed, I understand that the Government have made certain tax advantages in acknowledgement of its importance. However, there are obligations as well, one of which should be to ensure that basic employment standards are met for seafarers working on these ships. The Government admit that anomalies exist and the Bill presents an opportunity to put at least some of them right. I urge the Government to accept our revised amendment and I beg to move.