Cunard Drops Union Jack to Avoid British Labor Laws

Cunard's three cruise ships, Queen Mary 2, Queen Victoria and Queen Elizabeth, will no longer fly the Union Jack.

After 171 years of flying the Union Jack with Southampton painted on the stern, Cunard's cruise ships will now be registered in Bermuda and will bear the name Hamilton - Bermuda's capital. 

The question arises why Cunard, which has flown the British flag on its ships since 1840, would suddenly decide to flay a flag of convenience today?

Union Jack - Cunard Cruise Ship - Flag of Convenience - Cunard claims that the reason is simple.  It wants to offer "weddings at sea" where the captain can perform marriages.  Other cruise lines, like Princess Cruises which is flagged in Bermuda, earn income by performing marriages of passengers during cruises.  However, weddings at sea are not allowed under British law. 

But there is more to this story.  Britain's new "Equality Act 2010" requires that ship employees from EU countries who are working on British flagged vessel such as the Cunard cruise ships must be paid wages equal to those of the British crewmembers. By dropping the British flag, Cunard is dropping all the British wage and labor laws.  

Earlier this year, the New York Times published an excellent article regarding the shipping industry's use of "flags of convenience."  Entitled "Flying the Flag, Fleeing the State," the article explains how unscrupulous ship owners evade responsibility for environmental damage, exploitative labor and unsafe work conditions, and criminal behavior. 

The article reveals that ships used to fly the flags of their nation which protected the seafarers and passengers and punished the shipping companies when they broke the law.  But this changed when American flagged ships began flying the flags of foreign countries in order in order to avoid U.S. laws and government oversight.   The "foreign registries" were in countries with no government oversight and no real connection to the vessel or its owners in the first place, like Panama, Liberia, North Korea and even landlocked Mongolia.  The registries often fail to monitor the safety and working conditions on ships or investigate accidents.    

What are the real consequences of a cruise ship flying a flag of convenience?

For passengers or crewmembers who are victimized by a shipboard crime, Bermuda will have jurisdiction to investigate and prosecute crimes. You can read about the indifference and lackluster efforts of the Bermuda authorities in a recent article here.    

For crewmembers, they can be easily exploited.  The New York Times article points out that there is a "human cost" which includes long hours, punishing work, and little rest; some international regulations permit 98-hour work weeks.  Cruise line employees are a good example.  Stateroom attendants and cleaners work a minimum of 12 hours a day and often are pushed to 14 to 16 hours when required to handle luggage on embarkation days, ending up with a 90 plus hour work week and no days off.  Cruise ship cleaners earn a maximum of $545 a month working a minimum of 360 hours a month.  Repetitive injuries to these crew members frequently occur, and just as frequently the cruise lines abandon them in countries like Nicaragua or India with inadequate medical care.

Because most ship employees are non U.S. citizens, the U.S. public has been indifferent to their plight.  But the problem inherent in flags of convenience came home to the U.S. last year when the offshore Deepwater Horizon oil rig exploded and 11 American oil and gas workers perished.  

The U.S. Coast Guard released a preliminary report  about the Deepwater Horizon oil rig. The Coast Guard criticized not only rig owner, Transocean, but the foreign registry in the Marshall Islands where Transocean registered the rig.  Just like a cruise ship, the Deepwater Horizon oil rig was considered to be a vessel which had to be registered. 

Why did the rig owners decide to go all of the way to an island in the Pacific to register its oil rig, you may ask?   For the same reason cruise lines like Carnival and Royal Caribbean went to South America and Africa to register their cruise ships in Panama and Liberia - to avoid U.S. laws and oversight. 

Now Cunard, owned by Carnival whose cruise ships fly the flags of Panama, has finally followed suit by registering its three cruise ships in a rocky island in the middle of the Atlantic Ocean.

Yes, Cunard now can marry passengers at sea.  But many crewmembers will lose employment rights and victims of shipboard crime on the Cunard fleet will quickly find themselves in a no-man's land.     

 

October 20, 2011 Update:  The Cunard cruise ships will now fly the Red Ensign.  The Red Ensign Group is comprised of the United Kingdom, Crown Dependencies (Isle of Man, Guernsey and Jersey) and UK Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Montserrat, St Helena and the Turks & Caicos Islands) which operate shipping registers. 

This will permit the ships to be referred to as "British ships" but in reality be subject to the employment laws of Bermuda. 

October 21, 2011 Update:  Cunard fans are leaving brutal comments at the Cunard facebook page about use of a flag of convenience (my comment was quickly deleted).  You can read the comments here.

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Comments (4) Read through and enter the discussion with the form at the end
Terry Foskett - November 25, 2011 12:52 PM

Based on $545 per month for a cleaner on a cruise ship this would make a cleaner the lowest paid employee of RCI. The CEO of RCI Richard Fain is earning aprox $8m a year. This is about 1223 times more. Enough said.

Dan - June 27, 2012 4:06 PM

A few points on the above.

Cunard's liners have never flown the "Union Jack". The flag flown by a ship to designate its nationality is an "Ensign". For the United Kingdom of Great Britain and Northern Ireland, the Ensign for Merchantmen is the "Red Ensign".

The "Jack" is the flag flown at the front of the ship, at the Jack-Staff when ashore or at anchor. The "Union Jack" is flown by ships of the Royal Navy. Commercial Vessels fly a modified version of this consisting of the Union Flag and a white border, otherwise known as the "Pilot Jack". Alternatively, a ship can fly a flag from the jackstaff to identify the owner: a "House Flag".

As you have correctly identified, the Ships will be registered in the Bermudas. Bermudas is a British Overseas Territory, comprising part of the United Kingdom in the same way as Martinique is part of France or Guam is part of the United States.

The Cunard liners will continue to fly the Red Ensign. Your phrase "The Cunard cruise ships will now fly the Red Ensign" is misleading as as I believe I have explained the Cunard cruise ships have always flown the Red Ensign. As an overseas territory of the UK, Bermuda can differentiate their ships with their territory's achievement (commonly and eroaneously referred to as a coat of arms).

As for the only flag which can be referred to as a Jack. The Bermudas do not specify their own distinctive Jack. Therefore we must assume that the Pilot Jack is the correct Jack to be flown by Bermudan registered ships.

As for law, the Bermudas' maritime administration does follow most of the Motherland's law, specifically with regards to M Notices and the Merchant Shipping Act. As for pay, this is one thing that sadly, Bermuda (as all countries) should sort out.

As for hours of work, you do also mislead the readers of your blog. You claim that ship's staff work up to sixteen hours. Please can you explain where you get this information from. The IMO's Standards of Training Certification and Watchkeeping, which is on the British Statute Books and therefore is applicable to Bahamas registered ships, states that all staff must get a minimum of ten hours of rest per day. This means that the maximum they can work in a twenty-four hour period is fourteen hours. Furthermore, the code also stipulates a minimum number of hours of rest in a week. This is seventy seven. A full thirteen hours less than the ninety you quoted.

Jim Walker - June 27, 2012 4:36 PM

Southampton Dan:

What the IMO says in theory and what in reality occurs on cruise ships are two different things. Crew members work more hours than the IMO permits and rest less than the IMO requires. Its called ship life.

Are you a Cunard manager sitting in a cubicle in the U.K.?

Cheers matey -

John Part - February 1, 2013 1:38 PM

A little correction. Panama belongs to Central America, not South America. And please dont dare to say it is the same thing just because it is SOUTH of United States, because is definitely not.

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