Shipping Changes in CTH: Shipping Legislation Amendment Bill 2015

Early last month (15 October 2015), the Shipping Legislation Amendment Bill 2015 was introduced into the Senate in order to continue its progress through Commonwealth Parliament. The bill implements "major reforms to the regulatory framework for coastal shipping."

Purpose of the Amendments

According to the Explanatory Memorandum, the Shipping Legislation Amendment Bill 2015 (the Bill) provides a new framework for the regulation of coastal shipping in Australia. The Bill will allow for the existing tiered licencing system under the Coastal Trading (Revitalising Australian Shipping) Act 2012 (Cth) to be replaced with a single permit, available to both Australian and foreign vessels, which will provide access to the Australian coast for a period of 12 months. These permits will be held by commercial entities. In addition, the Bill will amend the Shipping Registration Act 1981 (Cth) to allow for vessels to be registered on the Australian International Register if they engage in international shipping for a period of 90 days or more.

The Bill will also establish a framework of entitlements for seafarers on foreign vessels engaging or intending to engage in coastal shipping for more than 183 days. The amendments will apply Part B of the Seagoing Industry Award 2010 (Award) to seafarers on vessels that engage predominantly in coastal shipping when the Fair Work Act 2009 (Cth) applies to them. Where a vessel traded for more than 183 days contrary to what was indicated in a permit, the amendments will provide an enforcement mechanism for seafarers to recover payments. The Bill also provides that a new coastal shipping permit must not be issued to a foreign vessel in these circumstances if the Minister is satisfied that the applicant has not correctly paid required amounts to seafarers under a previous permit. Foreign vessels engaging in coastal shipping for more than 183 days will also need to have two senior skilled crew members who are eligible to work in Australia because they are citizens, residents, or hold a relevant visa.

The Bill will include minimum entitlements for seafarers on Australian vessels that are registered on the Australian International Shipping Register when those vessels are engaged in coastal shipping work covered by the Fair Work Act 2009 (Cth). The Bill will make changes to the Shipping Registration Act 1981 (Cth) to amend the conditions of registration on the Australian International Shipping Register, with a requirement to undertake 90 days of international trading per year. Entry into a collective agreement with the seafarers? bargaining unit will no longer be a prerequisite to becoming registered. The ability for seafarers on vessels registered on the AISR to make collective agreements is unchanged. The amendments will also apply Part B of the Award to seafarers on vessels registered under the Australian International Shipping Register and not engaged in international trading. These vessels will also need to have two senior skilled crew members who are eligible to work in Australia because they are citizens, residents, or hold a relevant visa.

According to the Statement of Compatability, the Bill would ensure rights to:

• Just and favourable conditions of work;
• Freedom of association;
• Equality and non-discrimination;
• Fair hearings; and
• Effective Remedies.

Bill's Progress in Parliament

According to the Minister's Second Reading Speech:

The Bill passed through the House of Representatives on 14 October 2015 and was introduced in the Senate on 15 October 2015, and is now awaiting Second Reading Debate.

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