The IBF system for pay negotiations represents a unique and innovative approach to collective bargaining in the maritime sector and in the wider global approach to multi-national industrial relations.

This system involves two basic principles:

1)  A central negotiation at an IBF meeting that results in

a) an agreement to vary or maintain the monthly operating cost of a generic "model ship" with an assumed manning scale;

b)  consideration of any changes that might be necessary to a generic "IBF Framework Total Crew Cost Agreement" which provides most of the necessary conditions that should be covered in seafarers employment contracts;

c)  a review of any other industrial issues, such as the content of ITF Special Agreements, the ITF Welfare Fund, the designation of areas of warlike operations, union negotiating and funding arrangements at national level etc.

2)  A local negotiation in the major labour supply countries, and elsewhere, to translate, within agreed parameters, the basic increase in operating costs agreed centrally, and any changes to the IBF Framework TCC Agreement, into changes to local wage rates and employment conditions.  Each employer organistation in membership of the JNG has the right to conduct its own local negotiations on behalf of its members within the overall terms of the IBF settlement agreed at the full IBF meeting.

IMEC Local Negotiations

Once the main IBF negotiations are concluded, teams of IMEC representatives visit the principal labour supply countries to negotiate the application of the settlement at local level.

The result is that, within the terms of the overall IBF agreement, the different national agreements covering the labour supply countries are able to reflect the different national priorities between different wage benefits and the provision of social, medical and educational benefits.

IMEC local agreements currently cover:

• India
• Sri Lanka
• Philippines
• Russia
• Poland
• Romania

In addition, there are IMEC agreements covering German-owned FOC ships and national flag (GIS) ships, and an IMEC "International" agreement for use as a generic agreement with any nationality of crew.

IMEC agreements are "model" agreements.  This means that they can be utilised by IMEC members without change or, if any particular member needs to modify an agreement because of special circumstances, eg. because the company operates an employee benefit not recognised in the model agreement, such as a pension scheme, they are free to do so. This is provided that the overall effect is no less beneficial to the seafarer than the IMEC model.