Advocacy

Cabotage, also known as coasting trade, is the transportation of goods or passengers between two places within Canada. In Canada, Cabotage Law is enforced under the Coasting Trade Act. Under Canadian law, foreign-flagged ships are not allowed to engage in cabotage. A foreign ship may be permitted to engage in cabotage in Canadian waters only if there is no Canadian vessel available. In order for a foreign ship to engage in cabotage within Canadian waters, a special Coasting Trade Waiver must be issued by the Canadian Transportation Agency. Cabotage Law also mandates that ships operating in Canadian waters must use Canadian workers, and can only use foreign workers if Canadians are unavailable.

Across the globe, Cabotage Laws play a role in reserving a nation’s maritime commerce for its own citizens. Cabotage Laws ensure the retention of skilled workers and well-playing jobs for the future of the industry. It allows governments to ensure that at least certain domestic trades are not conducted purely on the basis of lowest labour cost, and that minimum standards are protected.

In September 2018, Seafarers’ Rights International (SRI), a world-leading international centre researching maritime and seafarers’ law, published a ground-breaking survey identifying that ninety-one-member states of the UN, representing 80% of the world’s coastal UN maritime states, have Cabotage laws restricting foreign activity in their domestic coastal trades. Contrary to what some would believe, Cabotage laws are prevalent throughout the globe and are directly linked to stable, safe and profitable employment for thousands of seafarers internationally. Click HERE to read the entire report.

Simply put, Cabotage Laws are in place to protect the rights and jobs of Canadian workers. Cabotage Law ensures a uniform standard of quality across the industry, mandating that those participating in cabotage, abide by, and meet Canadian labour standards. The laws not only protect the rights of Canadian workers, they are paramount to preserving our marine environment. Foreign crews often aren’t sufficiently trained to operate vessels in Canadian waters, which increases environmental risk, as many of these vessels transport hazardous cargo such as crude oil.

Canadian Seafarers are trained through various universities and colleges both in Canada and the United States. Their training meets – and exceeds – International Standards, allowing Canadian Seafarers to boast as some of the best trained in the world. Vessels manned by SIU members have some of the best safety records in the world, resulting in lower insurance costs and greater reliability of operations for the employers but most importantly, for the protection and well-being of SIU members.

As a union that represents Canadian seafarers working in the Canadian maritime industry, we fight every day to protect Canadian workers. We work to ensure they have opportunities for employment in the Canadian maritime industry. In addition, we remain opposed to any relaxation of maritime cabotage regulations, both in Canada and abroad.

While securing employment opportunities for Canadian seafarers remains the primary mandate for the SIU, we also have a responsibility to ensure all seafarers, both domestic and foreign, are properly treated, are working in safe conditions, and are paid prevailing industry wages while in Canada.

In September 2015, the SIU filed 42 lawsuits alleging that the Government of Canada was issuing work permits to the foreign crews of hundreds of foreign ships engaging in shipping in Canadian waters, despite the availability of qualified Canadian seafarers to serve on these vessels, which is contravention of immigration laws. In July 2016, the SIU filed an additional 13 lawsuits with similar allegations, forcing the Government of Canada to admit that it improperly issued work permits to the foreign crew members of the New England, a Marshall Islands flagged oil tanker that engaged in shipping in Canada.

The Federal Court granted SIU’s judicial review applications and set aside 11 work permits for the crew of the New England. The SIU was successful in reaching a settlement of the remaining outstanding 44 lawsuits with Employment and Social Development Canada.

The settlement was one of many major victories for SIU and its members.

During negotiations for the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA), Cabotage Law came under attack, as the government attempted to use it as a concession at the negotiating table. The Europeans essentially demanded unrestricted access to both EU first and second registry vessels to the majority of Canada’s cabotage market which would have caused great harm to the Canadian Seafaring industry.

In response, the Seafarers’ International Union of Canada mobilized across Canada, projecting their voice and reinforcing the strength of the union. The SIU stood strong, and stated that giving away cabotage rights to the European Union through CETA was an unnecessary concession that would result in great harm to the Canadian seafaring industry.

The Temporary Foreign Worker (TFW) Program is a Government of Canada program that allows employers in Canada to hire a foreign worker when no Canadians or permanent residents are available. In order to hire a foreign worker, employers must receive a positive Labour Market Impact Assessment (LMIA) from the Government of Canada. Employment and Social Development Canada conducts a rigorous assessment of factors, as set out in the Immigration and Refugee Protection Regulations, before issuing a positive or negative LMIA. The TFWP should only be used by employers to address their labour needs on a limited basis when qualified Canadians or permanent residents are not available.[1]

Up until September 2018, had the required Labour Market Impact Assessments for the Temporary Foreign Worker Program been assessed properly, the process would have indicated that there were Canadians, including our members, who were trained and capable to perform seafaring in the domestic shipping industry.

Non-Canadian crews do not have local knowledge of our domestic waterways. By allowing foreign crews to operate in Canadian waters, this poses security risks as crews are often not properly vetted. This can allow foreign crews to enter with false documentation. Further, environmental damage can incur to the Canadian coastline and bodies of waters, as foreign crews are not trained to operate in Canadian confined waterways nor winter conditions. On top of this, should an accident occur, it would be very difficult for the Canadian government to take action against a ship owner whose identity is hidden through the FOC system.

Foreign crews are over-worked and often exploited with a $2 an hour wage, which infringes on Canadian labour law. This wage also diminishes the good paying seafaring jobs in Canada where wages reflect the training, local knowledge and experience that sets Canadian seafarers apart. Moreover, Canadian sailors in the shipping industry risk losing their skill set if domestic jobs are not maintained. Aside from diminishing wages and skill-sets, this depletes well-compensating maritime jobs.

Some of the highlights of this new policy include:

• Every Employer or Canadian charterer importing a vessel into Canada’s Coasting Trade market for more than 30 days must obtain a letter of concurrence from the SIU indicating whether or not there are Canadian/Permanent Resident seafarers available for the position(s) for which an LMIA is being sought. The SIU coordinates this process on behalf of all the Canadian maritime labour organizations.
• In any case where an employer seeks a subsequent LMIA, for the same position(s) that was approved for short-term duration (Under 30 days) within the same calendar year, regardless if the new request is for 30 days or less, will be subject to the standard TFW program requirements including obtaining a letter of concurrence and meeting minimum advertising requirements.
• If a foreign worker is retained on board, employers must offer the same level and form of compensation as Canadians and permanent residents. The job offer must meet the median wage rate or higher for the duration of the Coasting Trade Waiver
• Employers must provide an appropriate employment contract as per the Working Conditions Policy of the TFWP which must include: dates Canadian employment laws and regulations will apply, including total duration the vessel is operating under a Coasting Trade License; and details of wages and compensation to be paid, including frequency of payment and mechanics of supplementary monetary and non-monetary compensation.
• For compliance purposes, employers must maintain comprehensive employment records that fully document payment of wages throughout the duration of the project.

More information can be found through the Service Canada website links below:

https://www.canada.ca/en/employment-social-development/services/foreign-workers/variations.html

https://www.canada.ca/en/employment-social-development/services/foreign-workers/median-wage/high/requirements.html

https://www.canada.ca/en/employment-social-development/services/foreign-workers/median-wage/low/requirements.html#h2.6

https://www.canada.ca/en/employment-social-development/services/foreign-workers/median-wage/wage-variations.html

is a free trade agreement that was agreed to in 2016 and has been partially implemented since September 2017. CETA allows European Union beneficially owned vessels, some of which are Flag of Convenience (FOC) vessels and European National Flag vessels to engage in Coasting Trade without a license when engaged in (1) feeder services between the Ports of Halifax and Montreal, (2) the repositioning of empty containers and (3) some dredging services. Despite being exempt from the need to obtain a CTL, the vessel is still engaged in Cabotage and regular work permit and LMIA requirements apply to foreign crew members.

Trade agreements that weaken Canada’s cabotage laws often seek to permit foreign-flagged ships to enter Canadian waters with foreign seafarers. Between 2013 and 2018, the SIU estimates that more than 4,000 temporary foreign work permits have been issued by the Government of Canada for domestic shipping jobs despite some years where 25 per cent of Canadian maritime workers were unemployed. The growing use of foreign flagged vessels in Canada, together with the temporary foreign worker program, has cost the SIU more than 2,100 jobs to date.

• Foreign crews are over-worked and often exploited with a $2 an hour wage, which infringes on Canadian labour law. This wage also diminishes the good paying seafaring jobs in Canada whose wages reflect the training, local knowledge and experience that sets Canadian seafarers apart. Aside from diminishing wages and skill-sets, this depletes good-paying Canadian maritime jobs.
• Allowing foreign crews to operate in Canadian waters poses security risks, as crews are not properly vetted. This can allow foreign crews to enter with false documentation. Further, environmental damage can incur to the Canadian coastline and bodies of waters, as foreign crews are not trained to operate in Canadian confined waterways nor winter conditions. In such an event, ship owners operating vessels flying the flag of an FOC are often impossible to locate in the event of a marine accident.
• Using maritime transport regulations as a bargaining chip at the negotiating table is an outright assault on the hard-working men and women of the Canadian maritime industry who work tirelessly to ensure that goods are moved to, from and within the Canadian market. The SIU is the only voice representing Canadian seafarers in Ottawa and our work to consult on trade deals and regulatory policy will always advocate in favour of the best interests of our members.