Seafarers Win 6% Wage Increase Over Three Years Despite Trade Uncertainties
In the face of global uncertainties and the potential impact on shipping from the trade war unleashed by Donald Trump, shipowners and the seafarers’ unions agreed to a better than six percent increase in monthly wages over the next three years. It comes after key agreements last week adding a designation as key workers and strengthening repatriation and shore leave for seafarers.
Director of the International Labour Organization (ILO) Sectoral Policies Department Frank Hagemann highlighted that the agreement came about as part of a “wholly unique global collective bargaining forum.” It was noted that maritime transport is the only industry with a formally recognized global minimum wage. Dating back to 1958, the agreement sets every three years the global minimum wage for seafarers.
The International Labour Organization led with meeting in Geneva on April 14 and 15 with the Subcommittee on Wages of Seafarers of the Joint Maritime Commission (JMC). Shipowners and seafarers’ unions from around the world, coordinated by the International Chamber of Shipping (ICS) and the International Transport Workers’ Federation (ITF), meet to discuss the issues and negotiate the elements of the Maritime Labour Convention and wage agreement.
The wage portion of the talks highlighted the escalation in global trade tensions reports the International Chamber of Shipping. It said both sides expressed concern about the “current cloud of uncertainty” and prospects of a potential full-scale trade war. They recognized that the world’s nearly two million seafarers would be caught in the middle and impacted by a slowing in global trade. This comes after a period of high global inflation during the recovery from the COVID-19 pandemic.
The terms of the wage agreement adopted yesterday call for a total 6.2 increase in the monthly minimum wage for seafarers between January 1, 2026, and January 1, 2028 (an increase from $673 a month as of January 1, 2025, to $715 per month as of January 1, 20208). Seafarers will receive a 2.5 percent increase in the first year followed by 2 percent and 1.6 percent in the following years.
“This agreement strikes a careful and considered balance between recognizing the vital contribution of seafarers and maintaining the commercial sustainability of the global shipping industry,” said Pål Tangen of the Norwegian Shipowners’ Association and spokesperson for the shipowners’ group during the meeting. “These are not ordinary times, and this resolution reflects our respect for their service while ensuring that shipowners can continue to operate in a highly competitive and volatile global market.”
During the meetings on the MLC, master contract for global seafarers, the discussions focused on the hardships encountered during the pandemic. The designation as key workers, seafarer repatriation, and visa-free shore leave were key elements. They also enhanced protections against bullying and harassment and added a new recommendation to provide reference materials on medical care for seafarers. These will go into effect by December 2027.
“Last week we made an important breakthrough with recognition of seafarers’ key worker status in the Maritime Labour Convention. This week we have taken a further step to improve their welfare through pay rises that both retain and increase the value of the ILO AB minimum wage, taking into account increases in the cost of living since 2022,” said Mark Dickinson of Nautilus International and spokesperson for the seafarers group.
Both the wage increase and the revisions to the MLC require approval by elements of the ILO. The contract terms will be presented at the 113th session of the ILO’s International Labour Conference in June. The wage increase will be submitted for approval at the ILO’s Governing Body in November. The next meeting of the Special Tripartite Committee on the MLC is set to take place in April 2028.