Maskinmeistarafelagið (The Faroese Engineers’ Union)

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(The Faroese Engineers’ Union)


Frakt & Sand Sp/f

Sandgrevstur P/F

Sekstant Sp/f

Vermland Sp/f
1. Scope of Agreement
This Agreement applies only to members of Maskinmeistarafelagið and Frakt & Sand Sp/f, Sandgrevstur P/F, Sekstant Sp/f and Vermland Sp/f.

2. Employment and Period of Notice
1.1. Engineers / mechanics will be employed pursuant to the conditions set out in existing legislation and in this agreement.
2.2. This Agreement shall not amend any existing salary schemes, if they are better than the provisions in this Agreement.
2.3. The period of notice from a shipping company is 1 month to the last day of a month during the first 6 months of employment. After 6 months of employment, it is 3 months to the last day of a month. The period of notice is extended by 1 month every third year of employment up to a maximum of 6 months.

Engineers/enginemen shall give 1 month’s notice to the last day of a month. The compensation stipulated in Article 41 of the Seafarers’ Act may be set off against this period of notice.

2.4. If a shipping company terminates an engineer’s employment while abroad, the shipping company shall pay for his travel home.

If the period of notice ends before he returns home, he shall receive wages until the day he returns. The foregoing does not apply when employment is terminated due to an engineer’s failure to comply with the employment contract.

2.5. When employment is terminated on grounds of a vessel being laid up, being in dock undergoing repairs or on similar grounds, the period of notice for engineers, who have been in a shipping company’s service for more than 1 year, does not commence before the vessel or engineer has returned home.
2.6. When engineers are instructed by a shipping company to transfer to a vessel in a lower wage bracket, before they have returned home on holidays, they shall receive the same wages as before the transfer. If the transfer takes place while abroad, then Article 7 of the Merchant Shipping Act applies; it stipulates that engineers shall not spend more than 6 months away from home. Transfers taking place after an engineer has given notice of resignation may not extend the period of notice.
2.7. When engineers resign while at home and before they are due to sign on again, their term of employment, and with it their wage entitlements, end when the time off they have accrued has been settled, unless the shipping company is able to assign them to one of the company’s other vessels within the period of notice stipulated in 2.3.
2.8. Should the provisions in 2.5 or 2.6 generate any travel expenses to and from a vessel, the shipping company shall pay for any such expenses.
2.9. Repeat termination of employment, meaning any termination of employment repeated monthly or every third month, is null and void.
2.10. Once engineers have been with a shipping company for over half a year, they may, by agreement with said company, bring their partner on board for a maximum of 3 months per year.

2.11. If a partner remains on board for more than 3 months, the vessel shall receive payment for board. The shipping company is not liable for any travel expenses, insurance or any other responsibility whatsoever.
2.13. The above provisions are contingent upon conditions on board, that they allow for such arrangements and that the vessel’s operation do not require everyone on board to have special skills.
2.14. Only time-off in lieu of wages earned since the most recent signing on may be counted against a term of notice. Time-off in lieu of wages during a term of notice is part of the term of notice.

3. Wages
3.1 The overtime scheme does not apply to chief engineers, when on-board on their regular assignment, as it is calculated into their wages and bonuses.
3.2. Engineering crews are entitled to a holiday supplement in accordance with the relevant Article enacted by the Løgting on paid holidays with subsequent amendments.
3.3. When engineers are transferred between vessels, they shall receive wages during any

waiting period.

3.4. Engineers are entitled to receive earned wages by the first day of the following month at the latest.

If wages are paid after the tenth of the month, 1.5% shall be added to the wages. Subsequently, 1.5% shall be added for each additional month for any unpaid wages.

3.5. The agreed wages shall increase by 1.98 % on 1 March 2015 and by 2.25 % on 1 March 2016.
The Salary Scheme is attached to this Agreement and shall be considered an integral part hereof.

4. Pension Scheme
The shipping companies transfers, on behalf of the crew, 8% to a pension scheme approved by both parties.

Pension contributions shall be calculated on basis of the the basic wages stipulated in the Salary Scheme

Pension scheme contributions shall be transferred at the same time as wages are paid.

5. Holidays
5.1. Engineering crews are entitled to 30 days off with full wages for every 30 days on board. This time off include any holidays provided for in Act 30, dated 7 April 1986, enacted by Føroya Løgting on paid holidays, with subsequent amendments.
5.2. When taking their holidays, engineers are entitled to at least 25 consecutive days off for every 30 days on board, before signing on. Any remaining time off may be exchanged for pay in accordance with the agreement in force.
5.3. Sundays and non-working days shall be included when calculating holidays.
5.4. Engineers who have spent 3 consecutive months serving the same shipping company and have not visited the Faroes during this period are entitled to have their journey home paid by the shipping company, if they wish to take their holiday in the Faroes.
5.5. Shipping companies shall schedule time off in such a way that after being signed on for 10 weeks, engineers are entitled to free transport and holidays pursuant to Art. 5.1., receiving the same fixed monthly wages as when signed on. Shipping companies are not liable for any expenses accruing from more frequent changes.

Holidays not used may be saved for subsequent time off in lieu of pay in accordance with the Agreement in force. Accrued holidays may be exchanged for pay, provided that both the engineering crew and the shipping company agree to this.

A shipping company and and an engineering crew may agree to offset up to 10 days against upcoming days off, if it was not possible to ship out again on time.
5.6. Travel days beyond the 1. day of travel shall be calculated as 0 days. This means that wages are paid for the day but no time off is accrued.
5.7. Time off may also be used during periods of inactivity (unemployment), provided the

shipping company has given prior notice to this effect.

5.8. The first day off is the day after seafarers return to their home country. The last day off

is the day before they leave their home country.

5.9. The shipping company shall foot any travel expenses for relief engineers.
5.10. Holidays shall be agreed between an engineering crew and a shipping company at least

20 days before signing off.

5.11. Chief engineers shall not stand watch while a vessel is in port, provided the engineering crew is made up of two or more members in addition to the chief engineer.
5.12. For periods signed on exceeding 10 weeks, engineers shall be entitled to 1/3 day off per day for the first 14 days and 2/3 days off per day for the following days.

6. Illness and Accidents
6.1. Engineers forced to sign off due to any illness or accident for which a shipping company is liable pursuant to the provisions of the Seafarer’s Act, shall receive: If they have 3 months’ notice, 3 months’ wages and care compensation; if they have 4 months’ notice, 4 months’ wages and care compensation. All other particulars are governed by the Seafarer’s Act in force.
6.2. Bereavement compensation: If an engineer dies while in employment, his spouse or children under 18, for whose maintenance he was responsible, are entitled to bereavement compensation for up to 3 months. If the deceased was employed by the shipping company for 5 years as an officer, they are entitled to bereavement compensation for up to 4 months. Any time off accrued shall be considered in addition to the above.
7. Board Wages
7.1. During service on board while the vessel is at home and meals are not provided, engineers shall receive DKK 110.00 per day.

When meals are not provided during service on board away from home, engineers shall receive maximum DKK 360 for each day according to receipts.

7.2. If it is required of an engineer to work or supervise on board while not signed on, while the vessel is away from home, the shipping company shall cover all accommodation and maintenance expenses in agreement with said engineer.

If no other agreement has been reached, the provisions regulating working hours, wages and time off when signing on apply.

8. Membership Fees
8.1. The Shipping company shall pay Maskinmeistarafelagið membership fees on behalf of the engineering crew. They shall pay the percentage rate applicable at any time; currently it is 1.2% of the total wages paid.
8.2. The parties agree that it is in their shared interest that seafarers and shipping companies organize in a trade union and employers’ union, respectively.

As needed, the parties shall disseminate information about the benefits of joining a union. Furthermore, the parties shall strive to guarantee compliance with the Agreement.

9. Insurance
9.1. When the shipping company pays the engineering crew’s travel expenses, they shall also pay for insuring their luggage.
9.2. In the event of shipwreck or other damage, such as fire, the shipping company’s insurance shall compensate for loss of personal property in accordance with Article 42.1 of the Seafarer’s Act.

10. Intoxication
Intoxication at work may lead to immediate dismissal without any redundancy compensation entitlement.

11. Continuing Education
10.1. Engineers have a duty, as instructed by the shipping company during a calendar year, to spend up to 5 calendar days of their holidays on courses. All additional days off spent shall entitle engineers to one day off. If a shipping company fails to give notice before 1 December, it shall not be possible to use any days off for courses in that calendar year.
10.2. Supervision related to building activities, meetings with the shipping company and similar activities, which cannot directly be considered educational or training courses, are not covered by this provision.

10.3. If engineers fail to request permission from the shipping company by the end of the year to use any days not spent (out of said 5 days) for relevant educational purposes in the following calendar year, they forfeit the entitlement to spend them on educational activities, but shall retain them as days off.
10.4. Engineers shall agree the use of any unused days as mentioned in 12.3. Said days shall be used before the end of the following calendar year.
10.5. Shipping companies shall pay for any course fees. Shipping companies shall also pay any travel, accommodation or board expenses, either by agreement or by submission of invoices.
10.6. Should shipping companies want engineers to spend more than 5 days on courses, the following rules apply.

Courses lasting more than a week, Saturdays and Sundays shall not be deducted from holidays.

Courses lasting more than 4 consecutive weeks: If, after 4 weeks, the course runs the first 4 days of the week, day 5 shall not be deducted from holidays.

12. System for engineers without the necessary sailing experience
The provisions of the Main Agreement apply to engineers without the necessary sailing experience, however, they are subject to the specific provisions stipulated in this article.
12.1. The time signed on system is 2:1, meaning that for every 30 days on board engineers get 15 days off. The parties may agree to apply a different system.
12.2. Shipping companies shall schedule time off so that after 3 months signed on engineers are entitled to free transport and holidays pursuant to Art. 13.1, with the same fixed monthly wages as while signed on. Shipping companies are not liable for any expenses accruing from more frequent changes.
12.3. Wages are stipulated in the Salary Scheme under the 2:1 system. If the parties agree to use a different system, salaries should be adapted accordingly. Henceforth, the amount will rise by the same percentage points as the Salary Scheme.
12.4. The period of notice for anyone employed pursuant to this article is 1 month’s notice from the shipping company and half a month’s notice from the officer.
12.5. Engineers are entitled to training in all relevant aspects on board, shipping companies shall facilitate such training.
12.6. The terms of employment in this article only apply until engineers have accrued sufficient sailing experience for their first license, STCW III/1 for engineers. Any engineers who continue their employment after this point, shall be considered re-employed under the terms and conditions and wages stipulated in the general provisions of the Main Agreement.

13. Work Clothes
Shipping companies shall buy all work clothes for engineers.

14. Leave
Engineers may be granted leave when it is not in conflict with the shipping company’s interests. For educational leave in the shipping company’s interest, agreements may be reached regarding time off on reduced wages. Leave may be granted for 1 year at a time.

15. Conciliation and Interpretation of this Agreement

14.1. If disagreements arise between the parties on how the agreement is to be interpreted, the parties shall first seek to solve the dispute in direct negotiations.
14.2. If this Agreement has been terminated and the parties fail to agree, or one of the parties declines to negotiate, each of the parties is entitled to initiate negotiations with the contribution of a mediator.
14.3. Any disputes regarding the interpretation of this Agreement shall be referred to the

Faroese Permanent Court of Arbitration (Fasti Gerðarrætturin).

16. Special Agreements
15.1. Maskinmeistarafelagið and Frakt & Sand Sp/f, Sandgrevstur P/F, Sekstant Sp/f and NA Transport Sp/f agree that engineers may enter special agreements directly with the shipping company.
15.2. The following conditions apply to such special agreements:

  1. That the basic principles are the same as in the Main Agreement.

  2. That when all its particulars are taken into consideration, the agreement is, overall, not worse than the Main Agreement.

  3. That, notwithstanding any special agreement, members still have a duty to pay the membership fees applicable at any given time to Maskinmeistarafelagið.

  4. That the termination of such an agreement follows the Main Agreement.

  5. That when individual agreements are entered between seafarers and shipping companies, said agreements are up for negotiation in the same years as collective bargaining takes place. They should be negotiated within 6 months of completion of collective bargaining.

17. Warzone
If a vessel is in a declared warzone, Maskinmeistarafelagið and the shipping company in question must discuss the matter immediately.

18. Validity and Notice
17.1. This Agreement shall not amend any existing salary schemes, if they are better than

the provisions in this Agreement.

17.2. This Agreement enters into force on 1 March 2015, and may be terminated by either party with 3 months’ written notice by a 1 March in a given year, but not before 1 March 2016 at the earliest.

Tórshavn, 4 June 2015

_____________________________ _____________________________

Maskinmeistarafelagið Frakt & Sand Sp/f

_____________________________ _____________________________

Sandgrevstur P/F Sekstant Sp/f


Vermland Sp/f

This Agreement applies to the parties who signed it.

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