Shipping and maritime project evaluations are divided into 2 phases – (1) construction and (1) operation. The exact nature of the evaluation will depend on the transaction type, but the general considerations and requirements are provided below.
The construction phase
The construction and hull yard will be evaluated by GIEK in relation to labour, health, safety and working conditions. There is a general requirement for documentation of appropriate management systems for labor and employment that includes both directly hired employees as well as subcontractors, with an emphasis on migrant workers. Certifications such as ISO 9001, ISO 14001, OSHAS 18001 and SA 8000 are acknowledged in the evaluation. If the yard does not have appropriate documentation or relevant certification, particularly in relation to labour and working conditions (SA 8000), or has not previously been evaluated by GIEK, it may be necessary to obtain a third party assessment of the shipyard’s management systems and practices in relation to these issues.
In the event that an assessment is required, GIEK will provide advice in scoping the assessment and identifying qualified third party consultants. If the report identifies points that need improvement, an Action Plan is agreed upon with the yard, with timelines and responsible persons. Critical findings related to issues such as forced labour, serious breaches to labour law, or critical health and safety practices need to be remedied immediately. Other findings need to be addressed in a timely manner in the action plan after issuing of a guarantee , and will be followed-up based on the timing of the transactions GIEKs approach is one of improvement over time. Therefore, the focus is on commitment to on-going improvement which is followed up and can be demonstrated.
The scope of reviews of yards include the following:
- Management systems pertaining to environmental, labour, and health and safety
- Child labor/Young workers
- Forced labor
- Health Safety and Environment
- Freedom of association and right to collective bargaining
- Grievance/ complaint mechanism
- Disciplinary practices
- Working hours
- Local laws and regulations
- Follow-up by the authorities
- NB: Particular focus is given to (1) "migrant workers" and (2) management of "subcontracted workers"
GIEK has these points as a minimum requirement from the shipyards:
- No child labor
- No forced labor
- The yard complies with all applicable local laws
- No serious violations of health and safety routines and regulations
- Shall cooperate with the applicant and/or GIEK
Yards that GIEK has already been reviewed and have been through the action plan/follow-up process will be expedited. Periodic updates on the status at the yard may be requested in relation to a specific transaction so as to confirm on-going compliance.
The operator and / or the ship owner need to document the following in relation to the operational phase:
- The class of the ship
- Relevant certifications such as ISO 9001 and ISO 14001
- Appropriate management systems for health, safety and environment, as well as for labor and employment.
- The flag, or intended list of flags for the vessel. NB: GIEK accepts flags that are on the Paris white list based on the International Chamber of Shipping flag state performance list.
- Confirmation that the ILO Maritime Labour Convention 2006 is followed.
Information as to whether the vessel will operate in environmentally sensitive areas, if known (such as the Arctic, RAMSAR protected areas, known fish reproductive areas, etc.) or business that involves possible vulnerable activities (i.e. drilling, seismic testing, dredging, fishing etc.).