Equal pay decision Dutch court
Maritime Performance B.V. and VSO Zwerver I B.V. have discriminated against a Filipino seafarer and an Indonesian seafarer by paying them significantly less than seafarers from Europe because of their country of residence.
Link to decision here:
https://oordelen.mensenrechten.nl/oordeel/2025-75
Landmark Ruling on Wage Discrimination Could Reshape Global Shipping Practices
A recent decision finding Maritime Performance B.V. and VSO Zwerver I B.V. guilty of wage discrimination against a Filipino and an Indonesian seafarer is sending ripples through the maritime industry, potentially reshaping pay structures and employment practices on vessels worldwide. The ruling, which concluded that paying crew based on nationality or country of residence constitutes unlawful discrimination, sets a strong precedent for how shipping companies operate in an increasingly regulated and globalized sector.
The Case
The two seafarers, both employed on Dutch-flagged vessels, were found to be earning significantly less than their European colleagues for performing identical duties under the same working conditions. The court deemed this practice a clear violation of equal treatment principles, emphasizing that wage differentiation solely on the basis of nationality undermines international labor standards, including those outlined by the International Labour Organization (ILO) and the Maritime Labour Convention (MLC, 2006).
Industry-Wide Impact
The decision challenges long-standing industry norms where seafarers from lower-income countries are often hired at reduced rates, even on vessels registered in high-income jurisdictions. Its implications include:
Legal Exposure for Shipowners and Operators: Shipowners with multinational crews may face lawsuits or regulatory penalties if similar pay disparities are uncovered.
Pressure for Equal Pay Standards: The ruling reinforces that wages should reflect job roles and qualifications rather than nationality, creating momentum for global wage standardization.
Increased Operating Costs: Shipping companies, particularly those flying European flags, may see a rise in crewing costs if they move toward pay parity.
Union and Worker Empowerment: Maritime unions and seafarer advocacy groups are expected to leverage this precedent to push for fairer contracts, especially in the offshore and cargo sectors.
Compliance and Contract Overhauls: Employers may need to review collective bargaining agreements, contracts, and HR policies to align with anti-discrimination laws.
A Shift Toward Fairer Maritime Labor Practices
The decision underscores a growing trend toward equity in global shipping. Regulators and courts are increasingly unwilling to accept wage discrimination justified by “market rates” in seafarers’ home countries. For an industry heavily reliant on international labor, this signals a potential turning point: shipowners may be compelled to harmonize pay scales, invest in compliance training, and adopt transparent hiring practices to avoid legal and reputational risks.
While implementation will be complex, the ruling reinforces that seafarers—regardless of nationality—are entitled to equal pay for equal work. As more cases emerge, the global maritime sector may experience a significant realignment of labor practices, bringing it closer to the principles enshrined in international conventions.
Impact on global shipping:
Global Ripple Effect of Wage Discrimination Ruling in Maritime Sector
The landmark ruling against Maritime Performance B.V. and VSO Zwerver I B.V. for discriminatory pay practices has triggered a worldwide conversation on labor rights and equality in the shipping industry. By affirming that pay disparities based solely on a seafarer’s nationality or residence are unlawful, this decision challenges long-standing norms in an industry where labor costs have traditionally been tiered by country.
A Wake-Up Call for the Global Shipping Industry
This precedent forces shipowners, crewing agencies, and operators to reconsider how they compensate workers from diverse regions. Many maritime employers hire seafarers from countries such as the Philippines, Indonesia, and India at rates far lower than their European counterparts. The ruling emphasizes that “equal pay for equal work” is not just a principle but a legal obligation under conventions like the ILO Maritime Labour Convention (MLC, 2006).
Key Worldwide Implications
Restructuring of Pay Models Across Flags
Shipowners worldwide may need to standardize wages to avoid legal exposure, particularly if operating under European flags or jurisdictions with strong anti-discrimination laws.
Pressure on Flag States and Regulators
Countries with open registries or “flags of convenience” could face scrutiny if they fail to enforce fair labor standards. This may lead to regulatory reforms, raising compliance costs globally.
Stronger Seafarer Advocacy and Union Power
Maritime unions and NGOs can use this case to campaign for global wage parity, boosting negotiating power for crews from lower-income nations.
Global Cost Rebalancing in Shipping
The shipping industry, already under pressure from environmental regulation and rising fuel costs, may see a new wave of labor-related expenses, affecting freight rates and supply chains.
Legal Precedent Beyond Europe
The ruling sets a reference point for courts and labor tribunals worldwide, encouraging similar claims in Asia, the Americas, and Africa, and moving the maritime workforce toward global labor equality.
A Potential Turning Point
This decision signals a cultural and legal shift: shipping companies will increasingly be expected to treat their multinational workforce under uniform standards, regardless of nationality. While companies may initially resist due to rising costs, this change could pave the way for a fairer, more sustainable maritime labor market, potentially reshaping how contracts, collective bargaining agreements, and crewing practices are negotiated worldwide.
