The International Transport Workers Federation (ITF) has revealed a case of wage underpayment totaling ~$2 million Australian Dollars (~1.27 million US Dollars) aboard the cruise ship MS Caledonian Sky.
This discovery emerged during the ITF's investigation at the port of Broome, Western Australia, shedding light on a recurring issue of underpayment, underscoring the need for legal reforms to safeguard crew members from such situations.
This development has raised concerns within the maritime industry and prompted questions about the practices of Australian Pacific Tours (APT), the largest locally-owned tour company in Australia, the crewing management firm Sea Chefs, and Delta Corp.
ITF's Australian Inspectorate Coordinator, Ian Bray, criticized APT and its affiliates for intentionally neglecting their responsibility to remunerate the ship's crew fairly. The investigation disclosed that 76 crew members on board the MS Caledonian Sky had experienced underpayment over a six-month period. Bray emphasized that there was no justification for an Australian company, operating an Australian service along the Australian coastline, to pay anything other than Australian wages in accordance with the country's laws.
The luxury ship MS Caledonian Sky was previously operated by the Melbourne-based APT (until August 2023) and is currently Bahamas-flagged/registered in Nassau. The Bahamian flag state allows it to bypass Australian taxes and regulations. Nonetheless, the vessel is obligated to pay award wages to its crew during authorized voyages, as stipulated by its Temporary License issued under the Coastal Trading Act.
In response to the allegations of wage underpayment, the Australian Maritime Safety Authority (AMSA) has collaborated with the Fair Work Ombudsman to address employment-related concerns on ships such as the Caledonian Sky. If the claims of wage underpayment are substantiated, the Fair Work Ombudsman can issue enforcement orders. It is anticipated that AMSA and other relevant authorities will vigorously pursue this case to ensure justice for the affected crew members.
Sea Chefs, the crewing management company responsible for hiring Caledonian Sky's crew/staff, is reportedly being terminated by the shipowner. This action, seemingly aimed at distancing APT from the wage dispute, raises questions about the crew's ability to recover their unpaid wages.
In Bray's words, Australian Pacific Touring generated substantial revenue from the diligent efforts of the seafarers, marketing cruise packages that command high prices per person. However, they were disassociating themselves from their crew, who collectively had been deprived of nearly $2 million.
The ITF has officially reported the incident to AMSA and the Fair Work Ombudsman and is cooperating with these agencies to ensure that the Caledonian Sky's crew receives proper redress. The federation has also reiterated its longstanding call for legislative reforms that empower government agencies to enforce and, if necessary, prosecute wage underpayment cases. These reforms encompass granting customs officers the authority to prevent vessels from departing Australia until outstanding wages have been settled.
The MS Caledonian Sky has been sold by APT's parent company, Australian Pacific Holdings. The luxury cruise ship is embarking on a new chapter under the ownership of Captain Cook Cruises Fiji, with her maiden voyage scheduled to begin on November 11th, 2023, departing from Port Denarau-Nadi.