Rjan:
muckles:
Their reason for wanting to relocate was to reduce their wage cost by getting rid of their Finnish workers and replacing them with cheaper Estonian workers.But I’m struggling to understand how they could replace the Finnish, if the Estonians were solid and weren’t willing to sell themselves any cheaper?
There is a long standing agreement between ITF affiliated Unions that if a ship is run under a flag of convenience, then only unions in the country where the genuine ownership and control of that vessel is should negotiate the collective agreements covering that ship. Basically it’s a policy to try and stop reflagging being used to undercut pay and conditions for workers and one that the Estonian Seaman’s Union had signed up to as a member of the ITF.
When the FSU found out about the Flagging out plan, they asked the ITF to send a request to the Estonian Seaman’s Union not to negotiate, as per the long standing agreement between ITF members
(I did read somewhere that the FSU was initially informed of plan to reflag the vessel by the Estonian Seaman’s Union, when they were approached by the Viking Line, but I can’t confirm this.)
Rjan:
No jobs (it seems) were under threat by Viking Line’s reflagging - they apparently weren’t shutting the workplace (the ship) down, nor were they making any redundancies.
The whole point of flagging the ship out to Estonia was to replace the Finnish crew with a cheaper Estonian one.
From the summary of the judgment.
Viking Line gave notice to the FSU of its intention to reflag the Rosella by registering it in Estonia in order to be able to enter into a new collective agreement with a trade union established in that State and to employ an Estonian crew, whose wages are lower than those paid in Finland.
Rjan:
muckles:
Rjan:
muckles:
The reason for Viking Line wanting to reflag the vessel to Estonia was to reduce wage costs, so why would they negotiate a deal where they had to pay the same rate as on a Finnish registered vessel?That’s the question I asked you, but you assured me that the Estonian workers were on board (ha!) with the policy of maintaining Finnish levels of wages?
I said that the Estonian Union had agreed not to talk to the Viking Line, after a request from the ITF on behalf of the FSU.
I’m not following you at all. You say Viking Line wanted to move in order to undercut wages - although the court reports suggests no existing jobs would be lost.
A history of the FSU, Viking Lines dispute.
The dispute started because the ship was losing money on the Estonian Finland route and the existing agreement between the Viking Line and FSU was coming to an end.
In initial negotiations to settle the dispute, long before the ECJ or British Courts got involved, when the FSU were told of the plan to flag out the ship, they demanded that the numbers of crew on board ship was increased, there were no layoffs and that if the vessel was reflagged, it continued to abide by Finnish law and collective agreements, as per the ITF’s policy on FOC, The Viking Line refused to accept these demands, except for increasing the size of the crew.
(So the Viking Line could have flagged the vessel in Estonia, but would have to continue with the same collective agreements that they had in Finland, as per the ITF policy)
It was at this point it went to court, initially in Finland, the court determined the FSU knew that insisting the Viking Line maintained the existing collective agreements on the vessel would make the reflagging pointless as its purpose was to reduce wage costs.
It was in another attempt to settle the dispute the Viking Line agreed there would not be redundancies, but wouldn’t budge on refusing the demand to the maintain Finnish pay and conditions.
(However how many times have we heard these promises about no redundancies, only for the workers to lose their jobs after accepting a settlement?)
The FSU refused to accept those terms and the Viking line back down accepted a new agreement and stopped the reflagging process.
That was until Estonia joined the EU in 2004, the Viking Line decided to take action against the ITF, stating the actions of the ITF and FSU were against its freedom of establishment.
As the ITF’s request to the Estonian Seaman’s Union not to negotiate with Viking Line had not been withdrawn and as the ITF still had an agreement between its affiliated Unions about not negotiating with companies over flagging out to reduce wages.
As it was the Viking Line settled with the FSU before the ECJ ruling and didn’t flag the ship out, the route did start to make money, enough from them to commission a new ship which was larger to take over the route in 2008, proving that reflagging the ship wasn’t the only option for survival.
In 2014 this ship was flagged out to Estonia, I don’t know what employment deal it runs on, but I assume it’s on a collective agreement that satisfies the FSU, ITF and Estonian Seaman’s Union.
Rjan:
Of course are the expert on the case - I don’t recall that I’ve ever come across it before this discussion.
I don’t consider myself an expert on this, but I have done a lot of reading on it, especially as I feel it has many parallels with what happening in the European haulage industry.
Although I can understand and even agree with some of the principles of the ECJ ruling, I believe in this case it was detrimental to workers trying to stop a general race to the bottom in pay and conditions.
If the FSU was trying to stop flagging out for other reason and not because the company wanted to reduce wages, I wouldn’t have been so tenacious in my support of them.
Rjan:
muckles:
Rjan:
The problem is that what you call “economically restrictive” means “working for the same rate that other workers are actually working for”.So are you advocating that the Finnish sailors should have taken a reduction in pay, to Estonian levels?
I’m not advocating it. I’m saying that the Estonian workers’ view on the matter ought to be represented. I see the same theme in your argument as when the rich say they’d struggle to live on £10k a week, but it’s alright in their view if everyone else is forced to manage.
It’s not about forcing others to manage on a lower wage while the rich, (well comparatively) remain rich, it’s about stopping a race to the bottom for all workers, and working towards improving pay and conditions across the board.
This is why I speak up on here against drivers laying the blame for the problems of European haulage industry in undercutting drivers wages on East European drivers, it means they don’t look for the real culprits, a great example of divide and conquer.
As it is, due to the ITF and collective industrial action, Estonian sailors have seen their wages go up and the ITF’s policy on flagging out, would also benefit Estonian sailors, if they found their pay and conditions or even jobs threatened by an Estonian shipping line trying to reflag a vessel.
Obviously due to not all sailors being in a union affiliated to the ITF or even in a union, there are still plenty of vessels under flags of convenience, so the owners can benefit from the reduced costs.
muckles:
Rjan:
The point is the EU has no plans to introduce an EU wide minimum wage.Because none of its centre-right governments, and centre-right-voting workers, have plans for those things. Christ, under the Tories, Britain is has levelled down it’s own minimum wages, by abolishing the agricultural minimum wage, and has tried to pretend the latest increase in NMW is a “living wage”.
I totally agree, EU policy is a reflection of the national governments that make up the EU, but then all the more reason for workers across the EU to work together.
Rjan:
muckles:
Hasn’t most of my argument on here been about free market policies being bad for workers, regardless of which country they from or working in.Yes. I mostly think I’m indulging the narcissism of minor differences between us.
I wouldn’t dare comment on whether its narcissism, but I don’t think we’re far apart on this.
As I said I not claiming that the EU is fundamentally anti worker and definitely not as much as our own government, just workers rights aren’t given to us, they are fought for and will need to continue to be fought for.