Opinion Number. 1264

Subject

NAVIGATION AND SHIPPING
AGREEMENT WITH SEAMEN: WAGES EXPRESSED TO BE SUBJECT TO ANY INCREASE OR REDUCTION IN ARBITRATION AWARDS

Key Legislation

NAVIGATION ACT 1912, s. 46: NAVIGATION (MASTER AND SEAMEN) REGULATIONS 1922. reg. 6; Form M & S-3

Date
Client
The Comptroller-General of Customs

The Comptroller-General of Customs has forwarded me the following memorandum for advice:

Section 46 of the Navigation Act provides that:

  1. The master of a ship, other than a limited coast-trade ship of less than fifty tons gross registered tonnage or a river and bay ship, who engages any seaman in Australia, shall enter into an agreement with him in the prescribed form, in the presence of the superintendent.

    * * * * * * * *

    1. The agreement shall be-
    2. framed so as to admit of stipulations (not contrary to law) approved by the superintendent being introduced therein at the joint will of the master and seamen.
  2. Regulation 6 of the Navigation (Master and Seamen) Regulations prescribes that Form M & S-3 shall be the form of agreement. This form contains a provision that, in consideration of the stipulated services being performed, the master agrees to pay the crew as wages 'the sums against their Names respectively expressed'. Other conditions follow.
  3. It was recently agreed in Great Britain by various panels of the National Maritime Board, that a clause be inserted in ships' articles providing for variations of wages and conditions during the currency of articles.
  4. In this connection advice is desired as to whether a stipulation on the following lines could properly be inserted in agreements between masters and seamen under the Commonwealth Navigation Act:

    It is also agreed that notwithstanding the statements appearing in column 12 of this agreement the amounts there stated shall be subject to any increase or reduction which may be awarded during the currency of this agreement by the Commonwealth Court of Conciliation and Arbitration, as applying to the rating to which the statement appertains, and such increase or reduction shall take effect from such date as the Court may award.

    It is further agreed that any alteration of any of the printed clauses containedin this agreement which may be awarded during the currency of this agreement by the Court shall take effect from the date awarded by the Court. The effect of the clauses proposed to be inserted in the agreement is that the terms and conditions specified therein shall be varied from time to time in accordance with any award made by the Commonwealth Arbitration Court.

I see no objection to such a clause being prescribed as part of the form of agreement.

It is suggested that the proposed clause should read as follows:

It is also agreed that notwithstanding any statement appearing in column 12 of that part of this agreement which specifies the particulars of engagement discharge and release [the amounts there stated] shall be subject to such increase or reduction as is specified in any award by which the parties to this agreement are bound made during the currency of this agreement by the Commonwealth Court of Conciliation and Arbitration as applying to the rating to which the statement relates and that increase or reduction shall take effect from such date as the Court awards.

It is further agreed that any alteration of any of the printed clauses contained in this agreement which are made by any such award shall take effect from such date as is ordered by the Court as if those alterations were embodied in this agreement.

[Vol. 19, p. 82]