OGB-L calls for round table on merchant shipping register

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In spring 2002, Luxembourg's OGB-L trade union confederation called for a round table meeting on the country's merchant shipping register and flag, with a view to establishing social and other standards designed to ensure that it no longer acts as a 'flag of convenience'.

A law introducing a merchant maritime shipping register and flag in land-locked Luxembourg came into force on 1 January 1991. The initial intention was to take the first steps towards establishing a possible future European Union shipping flag. At the time, the Belgian government concluded an agreement with its merchant shipping sector on allowing the transfer of Belgian ships to the Luxembourg flag, and regulating the conditions of such a move (protocols of 31 December 1998 and 19 December 1990). The Belgian government also reached an agreement with Luxembourg that seafarers who belonged to the Belgian pool and worked on ships flying the Luxembourg flag should continue to be covered by the Belgian social security system.

The Luxembourg flag has been described by some parties as a 'flag of convenience'- ie open to owners from other countries, with no genuine link between the vessel's real owner and the flag. The International Transport Workers' Federation (ITF), for example, has designated the Luxembourg flag as a flag of convenience, as it has concerns about the labour standards that apply. There have been claims that the Belgian merchant fleet has lost its ships to the benefit of Luxembourg, while gradually replacing its own seafarers with workers who are unskilled and low-paid, and accept social security cover that generally falls below European standards.

To avoid the Luxembourg's image suffering from a second 'Kralowetz affair'- referring to the recent controversy over illegal employment practices at a road haulage company registered in Luxembourg (LU0202104F) - in spring 2002, the president of the he Luxembourg Confederation of Independent Trade Unions (Onofhängege Gewerkschafts-Bond Lëtzebuerg, OGB-L) called for a round table meeting on the Luxembourg merchant shipping flag. This should bring together the shipowners and the trade unions, under the aegis of the Ministry of Transport.

The aim of such a tripartite meeting would not only be to examine the issue, introduce transparency, and draw a clear distinction between a 'genuine' flag and a 'flag of convenience', but also to establish social and other standards for all ships flying the Luxembourg flag, given that it is alleged that some shipowners currently do not even comply with the most basic social rules.

OGB-L has never been a great supporter of the Luxembourg flag, and has questioned the value of a 'market-niche policy' that it believes has brought more problems than benefits. With the sector now bringing in EUR 125 million, and consisting of 200 companies registered in Luxembourg owning 160 commercial vessels and yachts, the union confederation believes that the matter needs to be analysed in depth, particularly as only a 10th of the 2,500 seafarers employed on Luxembourg-registered ships are members of the Luxembourg social security system.

The current Minister of Transport has never been known to be a great strong supporter of the registration of other countries' ships in Luxembourg, and has even called for the possible withdrawal of the 'flag of convenience', so the matter could have some unpredictable repercussions.