Collective Bargaining Agreement

CBA procedure between employer and employee

Collective Bargaining Agreement (CBA)

It is a tri parties agreement between company, seaman and the Union. This is the document which details all the terms and conditions of the crew employed on the ship. It specifies entitlements such as pay (in the form of a wage scale), working hours, etc.

ITF Agreements are signed by an ITF maritime affiliate union and shipping company, either the beneficial owner, the operator, manning agent, or the manager of the ship.

The signatory union is normally from the country where the beneficial shipping company of the ship is based. Often, the union(s) of the crew’s home nation(s) also takes part in the negotiations.

This is to ensure that the agreement considers any national laws and customs and so that the crew members are able to become members of their national union.

Occasionally the ITF will sign an agreement directly with the shipowner. If you are covered by an ITF Agreement, but there is not an ITF affiliated union in your home country, the ITF will represent you in matters to the employer.

An ITF Agreement comprises of the following:

Special Agreement

This is the legally binding document that binds the employer to the relevant ITF approved Collective Bargaining Agreement (CBA). It states which CBA applies, it gives the details of the ship covered and it states the dates the agreement is valid from/to. It states the shipowner obligations and it also states the legal right of ITF representatives to access and inspect the vessel for compliance with the agreement.

Collective Bargaining Agreement (CBA)

This is the document which details all the terms and conditions of the crew employed on the ship. It specifies entitlements such as pay (in the form of a wage scale), working hours, etc. Individual employment contracts

These are the contracts which link individual crew members to the ITF Agreement and relevant CBA. They list the details of the seafarer, the employer, the vessel, and they state the terms and conditions of the CBA that apply to that particular crew member. So, for example, if he/she is an AB it will give the basic pay, guaranteed overtime, overtime rate, leave pay and subsistence allowance that apply to an AB.

There should be 4 copies of the Seaman’s Employment Contract:
one for the seafarer to keep for his/her own records; one for the ship’s file; one for ITF London; and one for the company’s file.

When a ship owner signs an ITF agreement, they undertake to:

 Apply the CBA’s relevant employment conditions laid out in the CBA
 Incorporate those employment conditions into individual employment contracts and into the ship’s articles
 Ensure there is appropriate insurance to cover the company against all liabilities in the relevant ITF

Agreement

 Accurately record working hours
 Provide the ITF with a current crew list
 Respect and apply the Non-Seafarers Work Clause, often referred to as the Dockers Clause.
 Pay union membership fees to the signatory union or the ITF Special Seafarers’ Department
 Pay the ITF Welfare Fund contributions.

ITF Agreements fall into three main categories:

Standard Agreement

The ITF Standard Agreement is normally signed as a result of industrial action or if a company is found to have broken a previous agreement. It is the costliest agreement for the ship owner.

Total Crew Cost (TCC) Agreement

The ITF TCC Agreement is the most common type of ITF Agreement. Most affiliated unions use the ITF Uniform TCC Agreement. There are several other types of TCC agreement, all ITF approved, which have been adopted by different affiliated unions worldwide. Whilst they may vary slightly (mainly due to the requirements of their national legislation) they are all based on the ITF Uniform TCC and meet with established ITF minimum standards.

International Bargaining Forum (IBF) Agreement

The IBF Agreements (CBA) are only available to ship owners that are members of one of the ship owners’ associations that make up the Joint Negotiating Group (JNG) that sit alongside the ITF in the International Bargaining Forum (IBF). IBF Agreements (CBA) are based on a framework CBA, with a specific variation for local content but all fulfil minimum criteria. Social partners, the Employers and the Union negotiate the local content and wagescale based on a centrally negotiated term and wage increase.

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