Maersk settles with Department of Labor over whistleblower firing

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Maersk settles with Department of Labor over whistleblower firing

Maersk Line Limited has announced that it will amend its safety reporting standards and compensate a seaman the company fired.

This is in relation to a settlement with the U.S. Department of Labor. The seaman was terminated after reportedly providing safety concerns to the U.S. Coast Guard without first informing Maersk Line Limited when in December 2020 they reported safety problems on the Safmarine Mafadi, a 50,000-tonne, 958-foot container ship, prompting an inquiry.

Following a three-day hearing in June 2024, Maersk challenged the findings of a whistleblower investigation by the department’s Occupational Safety and Health Administration.

The investigation found that the company violated the employee’s rights under the federal Seaman’s Protection Act by retaliating against them.

The Occupational Safety and Health Administration (OSHA) determined that the firm policy, which prohibits employees from contacting the USCG or other federal, state, or municipal regulatory authorities without first telling the company, violated federal law.

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Solicitor of Labor, Seema Nanda, said: “The Department of Labor will enforce workers’ protected rights as whistleblowers under federal law. No employer may violate whistleblower regulations or create policies that require employees to notify their employer before they report concerns to federal regulatory agencies.

“This seaman showed the kind of bravery for which mariners have long been known by raising concerns that, left unchecked, could have endangered everyone aboard the Safmarine Mafadi.”

In a settlement negotiated after the hearing in Boston, Maersk agreed to the following changes:

  • Remove any obligation for workers to notify the firm before notifying the U.S. Coast Guard.
  • Refrain from retaliating against mariners who notify the USCG.
  • Train all supervisors on the amended policy.
  • Distribute OSHA’s Seaman’s Protection Act Fact Sheet to seafarers on U.S.-flagged vessels over the following two years.

Rear Admiral and Assistant Commandant for Prevention Policy for the U.S. Coast Guard, Wayne Arguin, said: “This case is an important affirmation that all mariners have the option to contact the U.S. Coast Guard directly to address a safety concern.

“Safety requires a team approach. The size, complexity and importance of the marine transportation system demand that everyone work together to prevent casualties and minimize supply chain disruptions.”

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Maersk also promised to continue complying with all applicable requirements and to pay the dismissed seaman for lost income and damages. Under the terms of the settlement, Maersk did not confess to violating the Seaman’s Protection Act.

Assistant Secretary for Occupational Safety and Health, Douglas L. Parker, said: “This resolution is a victory for mariners aboard US-flagged vessels worldwide.

“Workers who cope with the ocean’s natural hazards should never fear reporting concerns about their vessel’s safety. Maritime industry workers are vital to the well-being of our nation, and there is no place for policies that restrict their rights to alert authorities to unsafe conditions.”

Recently, a fire broke out on the containership Maersk Frankfurt near the Karwar region of Karnataka, India.

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