The maritime industry, vital to Australia’s economy and global trade network, is facing a long-standing challenge: wage underpayment.
While this issue is not new, it is increasingly urgent—especially given the industry’s unique vulnerabilities. But positive momentum is building, as government agencies take decisive action to ensure fair treatment and pay for seafarers.
Why wage underpayment persists in the Maritime Sector
A number of factors make the maritime industry particularly susceptible to underpayment:
- International crews and complex employment arrangements—often involving third-party crewing agencies—can obscure who’s responsible for wages.
- The use of flags of convenience, where ships are registered in countries with looser labor regulations, can allow employers to sidestep stricter Australian standards.
- Isolation at sea makes it difficult for seafarers to access support or report mistreatment.
- Power imbalances, especially for workers from developing nations, can create a climate of fear around raising concerns.
- Language and cultural differences may prevent workers from understanding or asserting their rights.
These challenges combine to create an environment where wage underpayment can go unnoticed and unreported, even on ships operating in Australian waters.
A crucial partnership driving change
A major step forward is the recently announced partnership between the Fair Work Ombudsman (FWO) and the Australian Maritime Safety Authority (AMSA).
This collaboration, formalised through a Memorandum of Understanding (MoU), represents a coordinated effort to improve wage compliance on foreign-flagged vessels operating in Australian waters.
By sharing regional intelligence and conducting joint inspections, the two agencies are better equipped to identify wage underpayment and act swiftly when issues arise. Crucially, this partnership helps prevent overseas operators from undercutting Australian wage standards, while reinforcing the country’s commitment to fair treatment for all seafarers.
A broader strategy to promote fairness at sea
Beyond this partnership, the government is pursuing a multi-faceted approach to reduce wage theft and improve conditions across the industry:
- Increased funding for the Fair Work Ombudsman to investigate and prosecute non-compliance
- Targeted compliance campaigns to educate employers and employees on rights and obligations
- Collaboration with industry stakeholders to develop and promote best practices
These actions reflect a strong commitment to setting higher standards for wage compliance and ensuring fair treatment for everyone working at sea.
A fairer future for seafarers
By addressing the structural risks in the maritime sector and strengthening enforcement mechanisms, Australia is taking a leadership role in protecting workers’ rights at sea.
These reforms are not just about enforcement—they are about strengthening the foundations of a fair, transparent maritime industry where all seafarers, regardless of origin, are treated with dignity and paid what they are owed.
As this work continues, Australia is setting a strong example for how a modern maritime economy can uphold both economic competitiveness and worker protections.
