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Contracts not worth paper they’re written on

Attendees of The Triton’s June Bridge luncheon were, from left, Marcus Harriott of a new build in Thailand, Bernard Charon of M/Y Kaleido Beau, Shaun Jarvis of M/V Solea, and John Campbell of M/Y Laymar II. The lunch was held at the Jolly Hotel Marina in Genoa, Italy. Photo/Lucy Reed

 FROM THE BRIDGE

Lucy Chabot Reed

 We took The Triton’s Bridge lunch on the road last month to see what captains in Europe had to say about employment contracts. Do they use them? And if so, what’s in them?

We discovered that this is another topic on which professional captains on both sides of the pond can agree: Having the terms of your employment in writing is important, but don’t expect that they will be honored.

As always, individual comments are not attributed to any one person in particular so as to encourage frank and open discussion. The attending captains are identified in a photograph on page A26.

So, do you have an employment contract?

“I have a handshake,” one captain said.

“Me, too,” said another. “With the previous boss I had a 37-page contract and he still screwed me.”

This captain said he is still owed more than $10,000 from the owner of his previous command, according to the terms of his contract. He said he will not pursue it, if only for the fact that attempting to get the money would give him a reputation with brokers and owners that he doesn’t want.

“Haven’t you ever heard the saying ‘Never sue a man of straw’? How many people do you know have the wherewithal to sue one of these owners?”

The conversation then turned to one of a captain’s rights when in a situation like that. The topic of arresting the boat was mentioned. That is, calling in a federal marshal to lock the boat until crew wages have been paid. Again, several of the captains agreed that would only give them a bad reputation in the long run.

“If your management company finds out, forget about it,” one captain said. “You are out of business.”

One captain noted that UK-flagged vessels with more than four paid crew are required under the MCA to have crew contracts of at least six months.

“I’m doing a contract now and the owner is upset a bit,” he said. “He’s hesitant to sign because [notice is] 30 days, which is normal in the UK.

“French customs wanted to see the contract,” he said. “If I don’t have one, they see me as hiring people with black market money. I have foreign crew. I got away with it because the girl was beautiful and I paid her some compliments, but she wanted a contract. She said, ‘next time you come, have a contract’.”

“I think they’re justified in asking,” another captain said. “France has realized that one of the centers of the yachting industry is Antibes. We all don’t necessarily have a right to work there. English are OK, but not Argentineans, New Zealanders, Australians.”

So of the four captains in the room, two were working on contracts, one had one, and the last did not, at least not officially.

“My feeling with a contract is that if it’s time to go, it’s time to go,” said the captain without a contract. “A lot of it’s not enforceable anyway. What I choose to do is in the interview, we’ll discuss the terms, and then I send an e-mail with everything we agreed to so we have it in writing.”

Do you need a reply?

“Yes, I like to get confirmation that he agreed to what I think we agreed to.”

“Even if he doesn’t reply, the minute he starts paying your salary, it’s implied that he agreed,” another said.

“I like having a contract,” one captain said. “With a contract, I want it to be clear that I’m tied to the boat. I don’t have personal insurance so if I make a mistake, which any one of us can do at any time, I want to be linked to the insurance of the boat. I’m an independent contractor and I want it to be clear that I was in service to the boat if anything happens.”

So does anyone have captain’s or license insurance?

“No,” one captain said to unanimous consent. “The premiums are huge; I can’t afford it.”

“One thing I will never do again is put out personal money for the owner. That is always lost. If my wages are missing, I pick up the phone and ask ‘what’s the problem?’ If I’m not paid in a reasonable time, I will leave.”

“I’d give him three days. I’m paid in full after 28 days,” another said. “If I’m not paid on the 29th, I’m off by the 31st.”

“I think it’s right to go after your money,” a third said. “Crew has a responsibility to the owner, but the owner has a responsibility back to his crew. If they don’t pay, that’s wrong. Some owners think they can employ three men, pay for two then get another bloke. That’s wrong.”

So who wrote the contract you have?

“He [the owner] had created it initially, but invited me to make adjustments,” one captain said. “It’s straightforward, two pages, with my salary, the notice – which goes both ways – and performance guidelines. I added that the captain is master in security issues. The owner can make all decisions, except where safety is involved.”

Even that doesn’t always matter, one captain noted.

“I know a chap who worked for an Arab, very private. He rendered assistance to a ship at sea, which under international law you are bound to do, and he was fired.”

“That’s not defensible,” said another.

“You’re missing the point. Having an enforceable contract is only good if it’s enforced.”

“Just like I’m not going to sue my previous owner for the $10,000 he owes me.”

“I wouldn’t either. Normally, I wouldn’t even bother with a contract, but it was offered. I have the same respect for it as you do. None.”

“I think we all agree in principle that a contract isn’t worth the paper it’s written on.”

If you are a yacht captain and find yourself in Ft. Lauderdale at the beginning of the month, contact Editor Lucy Chabot Reed at lucy@the-triton.com for an invitation to our monthly Bridge luncheon. Space is limited to eight.

 

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