THE CYPRIOT affiliate of an international trade union representing seafarers has been given a slap on the wrist by the foreign organisation.
According to Lloyds List, an alleged abuse of a scheme allowing Cypriot- owned tonnage exemption from international union sanctions against flags of convenience looks set to end.
Under the rules of the International Transport Workers Federation (ITF), ships genuinely owned by Cypriots are exempt from ITF sanctions on open registries like that of Cyprus.
National companies are given yellow cards to distinguish then from foreign ones under the same flag.
But according to Lloyds, the Cypriot affiliate union, part of the Sek federation, has been issuing yellow cards to foreign firms through a process informally known as “christening”.
Under the scheme, lawyers, clerks, shipping agents and accountants signed affidavits on behalf of foreign owners claiming that ships belonged to them.
Lloyds claimed that one secretary with a monthly salary of £500 was thus alleged to ‘own’ 23 vessels.
In return for the yellow cards, the foreign ship owners then signed the Cyprus Collective Agreement with the union — which in some cases provides for wages lower than those stipulated by the ITF.
Other ITF affiliates opposed to the actions of the Cyprus branch argued that it was accruing union dues that should have gone to them.
The matter was thrashed out at a meeting at the end of last month in Limassol with 20 delegates, including those from ITF in London.
They believe the system operating in Cyprus promoted irresponsibility, as real owners could sometimes not be established in the case of casualties.
The ITF has threatened that unless a correct list of Cypriot owners is produced, all Cyprus-flagged vessels, irrespective of ownership, would be asked to sign standard ITF agreements.
An official at Sek said yesterday the yellow cards were given out strictly in accordance with the rules and regulations set out at a meeting with the ITF in September 1995.
He said the entire issue has been exaggerated and that the Cyprus branch has given “satisfactory” explanations to the ITF.
