The US arm of AP Moller-Maersk has been ordered to pay a whistleblower more than $700,000 for firing him after he reported a string of safety concerns to US authorities.

Maersk Line Ltd (MLL) suspended and then sacked the unidentified man in an act of “illegal retaliation” because he went to the US Coast Guard first rather than the company, the investigation found.

The company said it was “disappointed” by the “flawed” ruling and intended to appeal.

The seafarer, a chief mate, reported problems on board the US-flag, 4,154-teu Safmarine Mafadi (built 2007) including faulty lifeboat release gear, leaks that caused flooding in cargo holds and corroded equipment that needed to be repaired.

He told the Coast Guard in December 2020 that a trainee was left alone and unsupervised while on ship’s watch when fuel spilled that took crew two days to clear up. He also reported concerns over alcohol consumption on board.

The Coast Guard conducted an inspection of the ship on 29 December 2020. Maersk responded by suspending the seafarer and making him leave the ship. They fired him in March 2021, a report by the US Department of Labor found.

The seafarer had been a chief mate since 2010 and had also acted as a relief captain of the Safmarine Mafadi, which has since been renamed Maersk Tennessee.

The investigation report said the man went to the Coast Guard after he was given a warning letter for a log reporting breach. He claimed the warning was a response to his reports of drinking allegations on board the ship.

The department’s Occupational Safety & Health Administration (OSHA) ordered Maersk Line to reinstate the man, promote him to master and pay him more than $700,000 in lost wages, compensation and damages.

“OSHA finds complainant and his family have suffered tremendously because of respondent’s [MLL’s] illegal retaliation,” according to the report.

The agency said the company must also change its policy banning seafarers from contacting any US government agencies before notifying the company under most circumstances.

Complainant and his family have suffered tremendously because of [MLL’s] illegal retaliation

— Department of Labor

“Federal law protects a seaman’s right to report safety concerns to federal regulatory agencies, a fact every maritime industry employer and vessel owner must know,” Dallas-based OSHA regional administrator Eric Harbin said.

“Failure to recognise these rights can instil a culture of intimidation that could lead to disastrous or deadly consequences. The order underscores our commitment to enforcing whistleblower rights that protect seamen.”

MLL said it disagreed with the decision: “MLL is proud of its safety culture and its highest priority remains the safety and security of our mariners and shoreside colleagues.”

It said a separate arbitrator’s report had concluded that the seafarer’s allegations to the Coast Guard were an effort to thwart disciplinary investigations against him.

“MLL cooperated fully with the US Coast Guard in its investigation of these same events and the US Coast Guard’s official report ‘identified no evidence that the vessel/crew was not taking appropriate actions to address any safety or equipment concerns’,” the company said.

A US Coast Guard inspector descends a gangplank during training on a vessel in Virginia. Photo: US Coast Guard

MML was also at the centre of sexual assault claims brought by whistleblower Hope Hicks, who was known as Midshipman X when she came forward in 2021 to recount her ordeal on one of the company’s vessels.

The two sides settled Hicks’ sexual assault lawsuit in November last year. Terms of the settlement agreement were not disclosed.