CASES

Australia: Fair Work Ombudsman investigates underpayment on ISU-Lanibra ships

The Fair Work Ombudsman, Australia’s workplace regulator, is investigating two vessels which sailed under ISU-Lanibra agreements – after ITF inspectors complained that crew are owed USD 240,900 in wages.
Australia’s Coastal Trading Act outlines that foreign vessels operating under temporary coastal trading licenses are obliged to pay seafarers ‘Seagoing Industry Award entitlements’ on every voyage once they have taken part in three coastal trading journeys within 12 months.
If the complaints are upheld by the regulator, the companies could be subjected to heavy fines, compliance notices or litigation.
REPORT
Australia – Pacific Wave (IMO 9801275), Union Mark – IMO 9775153: Fair Work Australia complaints, failure to pay seafarers wage entitlements May and June 2024
The Fair Work Ombudsman is investigating two vessels sailing under ISU-Lanibra agreements which the ITF Australian Inspectorate believes have failed to pay seafarers a total of more than USD 240,900 in owed wages – both cases have been filed in complaints made to Australia’s Fair Work Ombudsman, the country’s workplace regulator, in May and June 2024, respectively. Should the complaints be upheld, companies could be subjected to heavy fines, compliance notices or litigation.
Under Australia’s Coastal Trading Act, foreign vessels operating under temporary coastal trading licenses are obliged to pay seafarers ‘Seagoing Industry Award entitlements’ on every voyage once they have taken part in three coastal trading journeys within 12 months.
The Pacific Wave is operated by Union Commercial Inc., with Tri-Marine SA listed as its beneficial owner – however, the ITF believes that Union Commercial Inc is directly responsible for employing its seafarers. Due to the ship embarking on three voyages in 2024 from Townsville to Devonport, Adelaide and Port Lincoln, respectively, the ITF is calling for 22 days of Seagoing Industry entitlement to be paid to the ship’s crew, totalling more than USD 72,600.
The Union Mark is owned and operated by Union Commercial Inc. In 2020, it sailed on three voyages from Brisbane to Geelong, Adelaide and Port Lincoln respectively. It then re-loaded and sailed another voytage from Thevenard to Bundaberg, before re-loading again in Gladstone for a final voyage. In total, the ITF and MUA are calling for a total of 51 days of Seagoing Industry entitlement to be paid to the ship’s crew, totalling more than USD 168,300.