USA

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Complaint of crew wages in US

Shipowners should be aware of the possibility of crew lodging claims of unpaid or unfair wages if the ship trades to the US.

It is customary for shipowners to maintain 'double book-keeping' to satisfy ITF. The crew were required to sign false receipts for wages under ITF scale than actually received.

Due to the crews' complaint, the seamen became unemployable as they were blacklisted in their country.

In one case the US Court held the seamen were entitled to recover the following head of claim.

a) Difference in wages	US$165,932
b) Penalties	US$6,571,134
c) Punitive damages	US$17,000,000
d) damages for loss of future income	US$6,800,470
e) damages for emotional distress	US$1,700,000
f) interest and legal cost	US$1,000,000
	--------------
	US$31,707,000

For a saving of US$165,932 in wages, the shipowner had to pay a total claim of about US$32,000,000, which is sure to financially ruin any shipowner as such risks are not covered by insurance.

12 Jan 2004

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