Australian authorities have banned a Panamanian-flagged bulker from its ports for three months after the crew were found to have been underpaid to the tune of AUD108,000 ($72,856).
The wage discrepancy was discovered aboard the 92,672-dwt Costanza (built 2010) during an investigation of a complaint from the International Transport Federation (ITF) about the underpayment of seafarer wages.
Additionally, the majority of the crew seafarer employment agreements had a salary amount less than the collective agreement for the vessel, according to the Australian Maritime Safety Authority (AMSA).
“The ship was immediately detained for serious breaches of the Maritime Labour Convention (MLC) which upholds seafarers’ basic rights,” the maritime regulator said.
Michael Drake, AMSA’s executive director of operations, said the incident constituted a “serious breach of the MLC”.
“Taking financial advantage of seafarers in this way is nothing short of exploitation,” Drake said.
“The majority of industry operators do the right thing by their seafarers, but for the few who do not, consider this a reminder that you will be held accountable.
“We do not tolerate the exploitation of seafarers in our waters,” he added.
The operator — Japan’s Orient Line Corp — is said to have subsequently taken the required steps to ensure all seafarers onboard are paid in full.
AMSA said it had received confirmation that the seafarers from the Costanza have now been paid their outstanding wages and the vessel has been released from detention.
Once the ship departs Newcastle it will not be permitted to approach or enter an Australian port until 9 February 2023, AMSA said.
The International Transport Workers Federation (ITF) claimed that crew members were denied their legal right to shore leave.
It also claims the unpaid wages were made up of a 20% shortfall to about 21 crew through August, September and October.
ITF inspector Dan Crumlin said: “There were people on that vessel who we understand have not been off the ship in about 10 and a half months.”
The ITF said this shocking case of abuse aboard an internationally flagged ship in Australian waters has come to light “only weeks after the ITF and the Australia Institute released a joint report into the endemic wage theft that is rampant within international shipping, especially along the Australian coast”.
