The International Maritime Employers’ Council (IMEC), the largest shipowner group in the world, has expressed its support for the escrow provision that was inserted in House Bill 7325, also known as the Magna Carta of Filipino Seafarers.
IMEC has been raising its concern on ambulance chasing in the Philippines, describing it as ‘a big elephant in the room’ that has been prompting several foreign shipowners to reconsider hiring Filipino seafarers to man their vessels.
Ambulance chasing is the practice of unscrupulous lawyers or law firms who take in seafarer-clients involved in accidents or injuries to gain a huge cut in the monetary settlement.
IMEC CEO Francesco Gargiulo said that they are elated to learn that an escrow provision on the proposed law for seafarers has been inserted that will finally put an end to the nefarious activities of ambulance chasers. Gargiulo said that ambulance chasing remains rampant in the Philippines and continues to be a big obstacle to the continued hiring of Filipino seafarers.
HB 7325 has passed third and final reading. The bill contains an escrow provision where monetary awards are placed on deposit until there is finality in the decision coming from either the CA or the SC. This means that the monetary award cannot be claimed by seafarers even with a favorable decision from the NLRC or NCMB, which would also put ambulance chasers on a tight rope.
The same escrow provision is also contained in Senate Bill 659, the counterpart bill of HB 7325 in the Senate, authored by Senator Raffy Tulfo. Hearings on SB 659 shall begin this month and many in the maritime industry are actually surprised that some quarters are against the escrow provision on the bill which puts a stranglehold on ambulance chasers and their illicit activities.
International shipowners have been shelling out huge sums on often ludicrous seafarer monetary claims instigated by ambulance chasers that are immediately awarded by the National Labor Relations Commission (NLRC) or the National Conciliation and Mediation Board (NCMB) but whose decisions are also often reversed either by the Court of Appeals or the Supreme Court.
When the CA or the SC reverses the NLRC or NCMB ruling, the seafarer is obligated to return the money. But since he only got 50% or less of the monetary award as it was already pocketed by the ambulance chaser, the seafarer can no longer return it without disposing off some of his assets.
Records show that foreign shipowners are owed more than P2.5 billion in monetary claims as of end of 2022 that have been ordered by the CA or SC to be returned in light of the reversal of NLRC or NCMB rulings.
Natalie Shaw, director of employment affairs of the International Chamber of Shipping (ICS) also shares IMEC’s concerns. “The Philippines need to seriously address the problem of ambulance chasing if Filipino seafarers are to maintain their position as number one in the world manning the global merchant marine fleet,” she said.
Even the International Transport Workers’ Federation (ITF), the world’s largest group of transport workers union, has also expressed concern about ambulance chasing in the Philippines. Fabrizio Barcelona, ITF labor representative, in an interview said: “Electing lawyers to handle claims cases in the Philippines to represent the pockets of these ambulance chasers rather than the seafarers is something that is not sustainable and surely affect the ability for the Filipinos to be continuously employed on international vessels.”
Department of Migrant Workers (DMW) Secretary Susan Ople recognizes the foreign entities’ concern and said that the government is doing its best to address the problem.
“The issue of ambulance chasing is a continuing concern and this is being dealt with by the Executive branch in partnership with the Judicial branch,” she explained.
Image credits: Henry Empeño