Storm threatens ship manning industry

The ruling of a Makati Regional Trial Court judge issuing a preliminary and mandatory injunction against Norwegian company Barber Ship Management Ltd. (BSM) and Barber-Smith Bell Manning Inc. (BSBM) could severely jeopardize the future hiring of Filipino seafarers. BSM is one of the world’s largest providers of shipping services whose network practically spans the globe. It sources more than 2,000 Filipino seafarers and deploys some 250 crew monthly as replacements. Documents obtained by Spybiz revealed that on May 2, 2006, BSM sent a notice to NFD International Manning Agents Inc. indicating the termination of the Agency Agreement (entered into by the two parties on Sept. 1, 2000) effective Nov. 2, 2006, in compliance with the 180-day provision under the said agreement. NFD was also informed that BSBM would be the new manning agency for the crewing of 135 vessels but NFD will continue manning 17 vessels until the final termination of the said agreement in Nov. 2. Apparently miffed, NFD, without waiting for the results of a conciliation meeting with the POEA and in total disregard of an arbitration clause in the contract stating that disputes or claims be resolved by arbitration, immediately filed a case at the Makati RTC on May 22 alleging that the termination was without due cause. It also cited an exclusivity clause that it said has limited the business opportunities of NFD into servicing the requirements of BSM, effectively preventing it from soliciting other shipping principals. POEA documents, however, showed that contrary to NFD’s sob story, it has businesses with three other principals aside from BSM. Observers familiar with the case said it was really a "no case" considering that BSM complied with the provisions concerning the termination of the agreement. Strangely enough, Judge Oscar Pimentel of the Makati RTC issued a preliminary prohibitory and mandatory injunction despite the abovementioned fact and in spite of the existence of an Arbitration Clause in the contract. According to sources, a cursory reading of the ruling seems to indicate that the judge – whose decision comes on the heels of his impending retirement in a few months – may have been haphazard, even missing simple facts such as the year when BSM started engagements with NFD, and the length of the business relationship between the two parties prior to the termination of the agreement. The judge’s ruling has already paralyzed the operations of BSBM and as a consequence, has jeopardized the livelihood of the 2,000 Filipino seafarers. It has also sent chills down the spine of shipowners as this may set an unpleasant precedent in the whole manning industry in the Philippines, where a court could effectively force a ship owner to engage the services of a particular manning agent even when the former is not satisfied with the latter’s performance. This controversy has already created a firestorm where the Norwegian Ambassador is expected to call the attention of DFA Secretary Alberto Romulo. Sources claimed the chief justice of the Supreme Court has been informed about the issue, while an administrative case is reportedly being prepared against the judge for his blatant disregard of crucial facts in rendering his order. The Speaker of the House, Joe de Venecia, is also being informed about this raging controversy. This could turn out to be another PIATCO fiasco where President Arroyo herself had to attend to this controversy and talk to German officials to prevent investors from moving out. There’s already talk going around that this stormy issue could prove to be another big black eye to Philippine international business relations.

Time to get MADD

News that the House of Representatives has passed a tough anti-drunk driving bill is encouraging a growing number of women to get MADD – that is, form their Philippine version of Mothers Against Drunk Driving. Just last week, more than 500 mothers from across the United States rallied together to strengthen their drive against drunk driving, prevent underage drinking and push for "A Nation without Drunk Driving." No less than Miss America 2006 Jeniffer Berry joined the MADD "moms," whose organization was spawned in 1980 by the death of Cari Lightner, a 13-year-old girl who was run over by a drunk driver as she walked down a suburban California street. In the US, more than 1.5 million motorists are apprehended each year on DUI charges. The House version, authored by Catanduanes Rep. Joseph Santiago, makes it illegal for any person to drive a vehicle while under the influence of alcohol or prohibited substances. If a person is found with a blood alcohol level (BAL) of 0.06 or higher, he would be considered under the influence of alcohol. BAL is the amount of alcohol in a person’s blood stream, recorded in milligrams of alcohol per 100 milliliters of blood. For instance, a BAL of 0.10 means that 1/10 of one percent (or 1/1000) of a person’s total blood content is alcohol. Under the bill, a first offender faces 30 days in jail, or a one-year license suspension and a P1,000 fine. Repeat offenders face 30 days in jail plus a five-year license suspension and a P5,000 to P10,000 fine. Alcoholics, beware.

Spy tidbiz: 100 and still going

Here’s the biggest way to beat boredom: Work! According to "Buster" Martin, Britain’s oldest employee who at 100 years old refuses to retire, boredom could kill so he went back to work as a mechanic for a plumbing company after retiring three years ago. The telephone-hating centenarian, who has 17 children and 70 grandchildren, said he is not overly fond of vacations and is happiest when he is at work.

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