Three and a-half years ago, I wrote about a large fine leveled against Royal Caribbean for violating labor rules and regulations while the Oasis of the Seas was dry-docked in the Netherlands. Dutch labor inspectors had arrived at the shipyard in Rotterdam and found that numerous employees who were working on the Royal Caribbean cruise ship lacked proper residence papers and worked excessive hours (some up to 16 hours per day).

The Oasis had been undergoing maintenance and repairs while in dry-dock in Rotterdam when 45  inspectors from the Netherlands labor department boarded the ship. The inspectors determined that as many as 124 ship employees were not part of the regular crew and the cruise line should have Keppel Verolme - Oasis of the Seasapplied for work permits for them.

The finding of the Dutch labor inspectors (“arbeidsinspectie”) led to a  €1,000,000 fine. This was an unprecedented action by a port state enforcing their local labor regulations against a large cruise company.

I asked at the time that “it remains to be seen whether Rotterdam receives any more work from Royal Caribbean in the future.”

Upon notice of the fine, Royal Caribbean quickly decided that the dry-dock repairs needed for its sister ship, the Allure of the Seas, would be performed in Cadiz, Spain. Since then, Royal Caribbean has avoided any maintenance of its ships in Rotterdam. Just last month, Royal Caribbean sent the Brilliance of the Seas from Amsterdam to a shipyard in Hamburg, Germany.

Royal Caribbean had used the shipyard extensively in the past, including projects like stretching and installing a mid-body section in the Enchantment of the Seas back in 2005.

The CEO (Kommer Damen) of the shipyard in question (Damen Shipyards, formerly Keppel Verolme), recently criticized the fine in a Dutch newspaper, Maritiemnieuws (auto translate via Google Chrome).  Mr. Damen was interviewed in the Dutch VNO-NCW opinion forum.

Mr. Damen essentially stated that the strict enforcement of the labor regulations of the Netherlands caused the shipyard to lose up to “about 1 billion euros” over the past 4 years. Mr. Damen characterized the fine as “simply unwise policy.” The opinion piece states that Royal Caribbean allegedly objected to and did not pay the labor fine.

Mr. Damen explained that, in his opinion, it is “entirely customary” for foreign shipowners to deploy their own ship employees (“riding crew”), as opposed to local employees employed by the shipyards, during maintenance projects. But, as Mr. Damen further argues, only the Dutch labor inspectors interpret and enforce the international regulations for labor on board ships in such a way that it is not possible to employ over a hundred ship employees not hired pursuant to the local labor laws. He cites the situation in countries such as Germany or France, where the the local inspectors permit the shipping companies to fly in extra crew for specialized projects taking place at shipyards.

We originally reported that Royal Caribbean had employed over 100 ship employees (and as many as as 77 Filipinos) to work on the Oasis of the Seas project during the dry-dock in Rotterdam. The cruise line was reportedly working these crew members as long as 16 hours a day (far in excess of the Dutch labor regulations) and likely for a fraction of what would have been paid to Dutch workers.

But when a labor fine results in lost revenue of a shipyard catering to the multi-million dollar business of a cruise line, its appears that labor inspectors will be forced to look the other way when ship workers work far-more-hours and for far-less-money than permitted by law.

Have a comment? Please leave a message or join the discussion on our Facebook page where I ask the question: Do you trust the cruise lines and shipyards to look after the labor rights of crew members?

Photo credit: Damen Verolme Rotterdam YouTube – Videoclip – Keppel Verolme dry-docking OASIS OF THE SEAS.

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