Business Standard

Shipping cos reject wage increase order

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Press Trust Of India Mumbai
Fearing a steep hike in operational expenses, Indian shipping companies have opposed an order of the director general of shipping asking them to pay a maximum wage scale to junior officers temporarily promoted for manning ships in the absence of senior officers.
 
"The requirement stipulated by DG, shipping, on payment of maximum salary for junior officers will result in steep increase in operational expenses in the wake of acute shortage of seafarers and increased number of vessels due to acquisitions," a senior official of a leading shipping company said today.
 
He said this move for the maximum payment in the event of `dispensation request' would adversely affect companies like the Shipping Corporation of India (SCI), Great Eastern Shipping Company Ltd and essar shipping which are facing severe shortage of seafarers.
 
Dispensations are sought whenever a company is unable to place a senior officer on board either due to urgency or due to non-availability of an officer. In such cases three times the basic wages of the short rank officers are paid to junior officer, who mans the ship.
 
According to the shipping directorate, dispensation has to be extremely rare and can be considered only on exceptional ground as it would adversely affect employment opportunities of qualified officers as well as jeopardise safe operation of the vessel.
 
Moreover, shipping companies are taking undue financial benefits with respect of dispensation, they said.

 
 

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First Published: May 11 2005 | 12:00 AM IST

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