Working it out - two ways

PANAMA's shipping register, and its reputation as a service provider, has made it popular with ship operators the world over. But it has not always been so popular with those who earn their living in the maritime industries.

Until recently, seafarers' labour rights were largely ignored by Panama. Now, however, a new labour code has been set up under the auspices of the Panama Maritime Authority's directorate of seafarers to provide two new labour courts as a convenient platform for wages and personal injury claims. In the process, the workload on the Panama Maritime Court (PMC) will be alleviated.

The PMC is stretched to capacity. The demands on its time are further exacerbated by the fact that the canal provides good opportunities for ship arrest, with waiting times for transits an average eight to ten hours, and by the amount of foreign seamen claiming for damages on vessels transiting the canal. These cases can now be heard in the new labour courts, as opposed to the maritime court.

Celma Moncada, senior shipping partner at Moncada & Moncada - who was appointed by the Panamanian government to work with a representative of the International Labour Office on the first draft of the new maritime labour law - welcomes the two new labour courts. But she thinks still more could be done to help seafarers. "The government's decision to hear claims in these labour courts, rather than in the Panama Maritime Court, could mean that financial awards to seamen might not reflect what they could get in the maritime court," she says.
Luis Shirley of Shirley & Asociados, who has seen labour claims from foreign seamen go through the maritime court, says, "The only relationship some of these claimants have with Panama is the fact that they are transiting the Panama Canal. Awards under Panama Maritime Court rulings will generally be higher than those under other jurisdictions, and seafarers are not unaware of this."

The law code is administered by the Panama Maritime Authority under its directorate of seafarers. Ruben Reyna, administrator of the authority, says, "We have huge potential here in Panama, and are only beginning to realise this through the PMA and strong government support for the industry. We cannot afford to ignore issues involving seafarers."

The PMA is responsible for the key maritime resources in Panama. So Reyna's job encompasses all major aspects of shipping in the country. Manning and training figure high on his list of priorities. "By showing an improved attitude toward the manning question, we are able to promote Panama's maritime attributes on a wider scale, " he says.

Meanwhile, employment legislation on the Panama Canal after the handback of control will be governed under the Organic Law of The Panama Canal Authority. Article 81 of the law states, "... the officials, the workers in positions of trust, the workers, and the unions of the Panama Canal Authority shall not be subject to the provisions of the Labour Code, the Administrative Code ... except those expressly provided in this law."

Not everyone appreciates this, particularly the canal pilots. At a recent presentation in London, representatives of the Panama Canal Pilots Association voiced their concern at proposed manning changes affecting the canal, and their possible knock-on effects in terms of safety and canal efficiency.

According to the Torrijos-Carter Treaty of 1979, all non-Panamanian senior pilots are to retire on the handover of control. This involves 72 out of a total 157 pilots, 61 per cent of the total pilot force. Helping to offset this is the decision by the Panama Canal Commission to reduce the number of vessels requiring two pilots for each transit.

But Captain Juan Feliu of the PCPA says, "The canal commission intends to eliminate all yearly pilot workload limitations. This will mean that the number of transits that pilots undertake will rise from the present 135 a year to a projected 165 annually."

Those pilots eligible to stay after the handover are expected to sign up to the new organic law. They will sign over the employee's rights they have enjoyed for so long under US jurisdiction, and will be governed under the organic law.

Panama has adopted a new, two-pronged approach to labour issues, involving the labour code and the post-handover legislation. Both initiatives affect employees in different ways, and both go towards improving the employment culture of an administration which previously stood accused of ignoring the rights of the worker.