Carnival Cruise Line is hiking its gratuity charge by nearly 8 percent, according to an article in Travel Agent Central today. The charge will rise to $12.95 per person, per day for passengers in most cabins, or $13.95 per person, per day for passengers staying in suites, effective September 1, 2016. There is a question posed on the comments section of the article: "does the charge actually go to the staff as a tip? or is it just a fare increase?" The question remain unanswered.    

Carnival said that passengers can lock in the current gratuity rate by pre-paying before Monday, May9, 2016.Carnival Pre-Paid Gratuity Removed

The gratuity charge, which crew members tell me does not all go to the crew members but is diverted to pay salaries or is considered revenue (profit) for the cruise line, is only a suggested amount. Carnival says that passengers can adjust it, or remove it entirely, by visiting the Guest Services desk while onboard the cruise ship.

You can read the Carnival tipping policy here.

Earlier this week, a Facebook page called "Complaining Crewship" complained that Carnival passengers were not paying tips and posted about 30 pages of photographed pages showing the names and cabin numbers of Carnival passengers (from an unidentified ship) who had their prepaid tips removed. There were hundreds and hundreds of passengers who removed their tips. Some of these people may have removed the pre-paid gratuities and paid cash but I was left with an unpleasant feeling that they were largely stiffing the crew.

I then shared the posting and photos on my Facebook page and started a discussion regarding the problem of passengers not tipping the crew members.  A firestorm of controversy then erupted. Some passengers did not like the fact that the names of passengers who removed the tips were revealed. Others expressed their feelings that it was outrageous that many people refused to pay any tips to the hardworking crew members.

Some readers seemed not to care at all about the crew and seemed concerned only with protecting the identity of those removing the tips. I guess the power of Wikileaks, Julian Assage and the Panama Papers escapes them. Several people complained to John Heald, the Carnival head cruise director and blogger at Carnival, about the release of confidential data. Others may have complained to Facebook about the "Complaining Crew ship" page, which may have been a page operated by either current or former Carnival crew members who were tired of being cheated by the guests.

The reality of the matter is that Carnival pays crew members like waiters. bartenders and stateroom attendants a small pittance by the cruise line (around $50 a month) and then requires them to work incredibly long hours, relying on tips for the majority of their compensation.  It’s quite a business model. Carnival incorporated in Panama and registered its cruise ships in Panama and the Bahamas to avoid virtually all taxes and then requires U.S. taxpaying public to pay the bulk of the crew member compensation. But many passengers view a gratuity as reserved only for spectacular and far-beyond-normal service. These guests obviously don’t tip at all or only occasionally and say that it’s the cruise line’s responsibility to pay the ship employees.        

Well, the original post by "Complaining Crewship" seem to have been taken down (as well as the entire Facebook page), voluntarily or involuntarily I can’t tell, and so did the photos I shared in the process.  But I had previously copied them all and am posting a few here (with the names redacted of those who removed their tips) to show the large number of tips removed.

Cruise lines do not like their ship employees to "out" the guests or to name and shame them, although these type of people seem to be largely deadbeats in my view, or to reveal the cruise line’s unfair treatment of the hard working crew members. For example, when a Royal Caribbean created a You Tube video a few years ago showing that the cruise line was in essence stealing automatic gratuities from the crew, Royal Caribbean threatened the crew members with legal action and petitioned You Tube to ban the video. Read: "Screw the Crew" Video: Banned By Royal Caribbean & YouTube!      

So the cruise line gratuity scam continues.  Carnival will create the impression that the increased gratuities are for the crew who, in reality, will never see a penny of the increase. Many passengers will remove all of the gratuities in their entirely and hide their cheapness behind their anonymity.

Carnival Pre-Paid Gratuity Removal

 

This weekend I read an interesting article in the Springfield Register-Guard about Royal Caribbean Cruises’ plans to add employees at its call center in Oregon.

There are currently over 700 employees at the call center in Oregon, according to the newspaper. The cruise line is planning to add another 220 mostly full time employees.

What struck me about the article was the lucrative pay and benefits which the cruise line provides to its employees. The newspapers says "Royal Caribbean touts its modern facility, which includes a fitness center and cafeteria; base pay that starts at $8.85 to $10.50 an hour, not including incentive pay; Royal Caribbean Call Center Spinngfield Oregonhealth care insurance; a retirement plan; the chance to advance rapidly, and cruising privileges."

The cruise line also received lucrative incentives to open the call center back in 2006. The state of Oregon provided $1.3 million in incentives, including a $600,000 loan. The company was required to pay back only around $64,000. 

What a great employment package for the people in Oregon (especially compared to the Royal Caribbean operations in the U.K. which was out-sourced to Guatemala earlier this year). They can make over $400 working 40 hours a week, plus benefits, in a nice facility doing a cushy job. 

How does that compare to a cleaner from Jamaica who works on a Royal Caribbean ship 10 to 12 hours a day, 7 days a week, with no time off and no benefits?  A cleaner on a Royal Caribbean cruise ship makes around $550 a month performing strenuous work under difficult circumstances, far from the comforts of home. That turns out to around $1.75 an hour. They are tied to contracts lasting anywhere from 6 to 9 months without a single day off.

The cruise line pays no taxes on the billions of dollars paid each year by cruise passenger, because it is incorporated in Liberia and it registers its ship under flags of convenience (Bahamas and Liberia) on its cruise ships. It rakes in millions and millions each year in profits. Its cruise executives, Mr. Fain and Mr. Goldstein, are collectively worth well over $100,000,000 because of the hard working and minimally paid crew, mostly from the Caribbean islands, east Europe, India, Indonesia and the Philippines.

The U.S. executives are swimming in cash while paying the "foreign" crew peanuts. 

There is something wrong when a U.S. call center employee sitting in a cubicle answering the phone for the cruise line can work less than one-half of the hours of a shipboard employee yet earn three times more, plus benefits and perks.   

 

Have a thought?  Please leave a comment below or join the discussion on our Facebook page

Don’t forget to read:  

Cruise Law Visits Royal Caribbean in Oregon

Globalization at Work? Royal Caribbean’s U.K. Call Center Outsourced to Guatemala

Cruise lines have mastered various way to steal the tips which are intended by passengers to compensate waiters and stateroom attendants.  Carnival’s P&O Cruises implemented a policy this year to withhold forwarding the tips paid by cruise passengers if the crew member’s performance falls below a 92% rating as determined by management. Read Profits Over People: Carnival’s Exploitation of Crew Members is Standard Industry Practice.

This is a real hardship because waiters and cabin attendants are paid a salary of only $50 a month and depend on tips to send money home to their families.

As you can see in the video below, a Royal Caribbean crew member alleges that the cruise line has devised a scheme to systematically divert money intended for the crew into the cruise line’s coffers. 

Leave a comment below or leave a comment on our Facebook pageRoyal Caribbean Tipping Policy

February 20, 2013 Update: Royal Caribbean objected to the video, threatened the crew member who posted it, and was successful in taking the video down. So much for freedom of speech.  Read our updated article: "Screw the Crew" Video: Banned By Royal Caribbean & YouTube!

 

https://youtube.com/watch?v=Mtaakkly_qU%3Frel%3D0

Last night in Britain, Channel 4 Television’s "Dispatches" program aired its undercover investigation, "Cruises Undercover," into the hours and working conditions on Celebrity Cruises’ Eclipse cruise ship sailing out of Southampton. 

The Twitter feed for "#cruisesundercover" and comments to the Channel 4 website page seems to show the general public’s disgust for the long hours and low pay revealed on the Celebrity cruise ship, which some are calling a "slave ship," while many in the travel industry are dismissing the program as biased. 

The usual cruise apologists have rushed to the industry’s defense.

We have the perpetually-on-a-cruise expert regarding cruise ships and cruise holidays and blogger for the U.K. Mirror John Honeywell who writes that the investigation was "under-researched and underwhelming" but then again three days before the show aired he wrote "I will have to watch this, but . . . it will be a complete and utter waste of my time."  

Cruises Undercover - Cruise Ship InvestigationWe have my favorite shill for the cruise lines, Paul Motter, editor for CruiseMates, who assures us that although "there are a lot of ways of doing business in the third world, which is where most of these workers come from, that we in the U.S. may not understand," most of the crew members are "ecstatically happy with their jobs."  And those crew members complaining about working conditions? Mr. Motter assures us that the waiters are telling us "lies" wanting to get "money at the end of every cruise."  

Can you believe the nerve of these liars from third world countries who work over 12 hours a day and expect tips?       

And then we have the cruise industry cheerleader publication Travel Weekly who tells us that before the program aired Celebrity Cruises expected a “biased and unbalanced” investigation.

Nonetheless, Travel Weekly promises us that the cruise line "is taking immediate steps to investigate all of the allegations made by the undercover reporter" and if anyone "violated our procedures and requirements, or the European and international labour regulations to which we adhere to, then we will take swift and corrective actions."

Pray tell, what exactly are these wonderful sounding "European and international regulations" which apply to Indian citizens working on a Maltese flagged ship?  

If the actions of Carnival U.K. and P & O Cruises (which earlier this year terminated 150 Indian waiters who protested low wages and the withholding of tips), are any lesson, "swift and corrective action" is exactly what I would be worried about if I were a crew member complaining about what the Channel 4 investigation revealed last night.   

 

Chart Credit: Channel 4 Dispatches "Cruise Undercover"

On Monday October 1st, the U.K.’s Channel 4 Dispatches television is airing a documentary about the working conditions aboard the Celebrity Cruises’ Eclipse cruise ship which is now home ported in Southampton. 

The program is called "Cruises Undercover: The Truth Below Deck."  Channel 4 describes the program as follows:

Almost two million Brits took a cruise last year. For many, it’s the holiday of a lifetime with hard-earned savings going in to a dream adventure.

Tazeen Ahmad - Channel 4 Dispatches - Cruises UndercoverGlossy marketing films and brochures depict a cheerful workforce dedicated to making a cruise a five star experience.

Channel 4 Dispatches goes undercover to investigate the reality of life below deck for the multi-national workforce who toil behind the scenes of glamorous ocean going holidays.

The cruise industry generates billions of pounds in revenue each year and working on a ship provides many people from around the world a much needed source of income.

However Dispatches reporter Tazeen Ahmad – traveling as a passenger on a European cruise – and an undercover reporter working as an assistant waiter discover working conditions below the legal minimum in the UK."

Celebrity Cruises has called upon its friends in the travel industry to launch a PR campaign to denounce the program even before its airs. One travel group responded to the battle call and said: "Dramatization of these documentaries does nothing to educate the public to the facts, but represents poor value TV entertainment  . . . "  (I can’t wait to watch!)

Celebrity Cruises says "sadly, we are anticipating a biased and unbalanced programme about the labour and wage issues in the cruise industry."

Claiming that the documentary is biased or misleading is the usual cruise line game plan when Celebrity Cruises Eclipse  investigative reporters go on board Royal Caribbean / Celebrity cruise ships to take an undercover look at how cruise ships really operate. Earlier this year, Inside Edition went aboard a Royal Caribbean cruise ship, the Liberty of the Seas, and filmed the excessive drinking which the cruise line encourages. The president of the cruise line protested that the program was "sensationalist" and "highly misleading." 

The treatment of crew members, particularly waiters, on cruise ships is shameful.  Some call huge cruise ships like this "floating sweatshops." The waiters work 12 hours a day, 7 days a week, for 6 to 8 months straight. One of the more dramatic stories this year covered Carnival U.K. firing 150 waiters from India who worked aboard P & O Arcadia.

Carnival terminated the waiters’ jobs after they protested for one hour about their tips being withheld. 

Its great that the media will shine light on the cruise industry’s treatment of its employees.  Once the program airs, expect more howling protests by the cruise lines and travel agents.

The documentary will certainly depict the industry as being different than the Love Boat TV series.  

I’m hoping that my friends in the U.K. will copy the program and send me a disc . .  .  

 

Photo credit:  EPA via Daily Mirror 

A dozen newspapers in the U.K. have reported on P&O Cruises’ decision to pay its crewmembers a basic salary of 75 pence an hour (around $1.20 an hour) which turns out to be approximately $400 a month. Cash tips are being phased out with automatic gratuities being added to the passengers’ bills. But rather than forwarding the passengers tips to the crew, the cruise line has threatened to withhold tips if the crewmember’s rating falls below 92 percent.

In grade school, a 92 is an "A-."  So if a waiter who works a minimum of 11-12 hours a day (330-360 hours a month) receives a 91 (a "B+"?), management will pocket the tips?  

The Guardian newspaper reports that P&O Cruises justifies the move claiming that it is actually "good" for the crewmembers because many tourists don’t tip.  It quotes David Dingle, CEO of Carnival UK, in charge of P&O cruise lines, saying that the crew were allegedly "much happier" and P&O’s pay scale is "standard for the industry."

Some passengers reported that many of the crewmembers on a P&O cruise ship, mostly Indians, were India - Impoverished Crew - Exploitationat the point of tears upon hearing the news.

Carnival U.K. CEO Dingle tells the Guardian that "we have a manning office in Mumbai. There are queues out on to the street."  Ah, the desperate lining up, praying that Mr. Dingle will bestow them with the opportunity to work 350 hours a month for $400.

This no reason to exploit people.  But it is a revealing insight into why Carnival and P&O exploit their employees. They can and therefore they will. 

The U.N. reports that over 410,000,000 people from India are living below the poverty level.

Dingle is also right about low pay being what he calls "standard for the industry."

Carnival and Royal Caribbean in the U.S. pay cleaners from Jamaica as little as $545 a month. They expect them to grind out 12 hours days for 6 to 8 months straight.  For a 31-day-month, that’s 372 hours for $545, less than $1.50 an hour.  And when the crewmembers’ bodies break, the cruise lines dump them back home without medical care and treatment. 

Corporate Watch has an interesting article which characterizes the low P&O pay as shameful.  Fares for the Carnival Legend range between $2,798 and $6,458 per passenger for a 12 day cruise around northern Europe. Yet, P&O workers would need to work for 500 days straight to pay for a cruise themselves, assuming that they did not spend a single penny of their wages.

Carnival Corporation has annual revenues of $15.8 billion in 2011 and profits of $2.2 billion.  Micky Arison is Florida’s richest person with a net worth of many billions.  But Arison is no Gandhi.  You will find him counting his billions on his 200′ super-yacht or on the front row of the AA arena in Miami watching his hundred million dollar super-star basketball players.  Trust me, he’s not worried about Indian waiters getting their tips.   

I can’t imagine working 350 hours a month for $400, hoping that the guests I slaved away for would reward me a score higher than a 92.  An "A" or no tip?  You would think that a company earning billions a year (tax free to boot) wouldn’t jack up a crew member for $150 in tips. But there is no satisfying this type of corporate greed.   

But who cares?  There are many young Indian men in line at the hiring agency in Mumbai hoping to be the next one to be hired to work aboard a P&O cruise ship.