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by BurningCycles 2245 days ago
>The thing that has put us off the last few cruises is realizing how workers on the ships are treated.

I read somewhere that the main reason these cruise ships, including those owned by well known US companies like Disney, won't register their ships under the American flag is so that they can avoid US labor laws, I don't know if this is true but it sadly wouldn't surprise me.

8 comments

It's true. You could still use cheap foreign labor and provide decent working conditions under flag of convenience, but it's the fierce competition that really forbids it. These massive cruise ships have become part of mass tourism. People look at the price first. If the price is 5-10% above competition without better service, it does not work as a business.

It's the non-caring consumers that enable consistent bad treatment of workers in the large scale. People like OP who stop are the only force besides enforcing tighter labor laws in the blue waters that can fix this.

Then there are billionaires in their yachts treating cheap labour as animals just because. That's just cruelty for fun.

The problem is, people who stop are not an effective force for fixing this, as they effect good actors equally as much as bad ones. To fix this with consumer pressure, you need consumers who still buy cruises, but discriminate based on how well the workers are treated (and are willing to pay the premium for good treatment).
It seems similar to the coffee market.

The industry should create a mark that represents and enforces a minimum of worker treatment, but doesn't appear to be as imaginative as Starbucks.

And then cruise ships are by faaaaar not the worst offenders in abusing flag's of convienence. They are under the most scrutiny so, having passengers on the ship 24/7.
Is this problem not easily solvable by forbidding cruise ships under flags of convenience from docking? Would there be any real downsides to doing so?
Where would you draw the line?
Labour laws, environmental and safety regulations, and numerous other requirements. "Flags of convenience" are a race-to-the-bottom Gresham's Law dynamic, also referred to as "the law of competing standards":

https://fs.blog/2009/12/mental-model-greshams-law/

That blog post is misquoting a version of Gresham's law that's not actually true.

For 'bad money' to drive out 'good money', you need some force that compels sellers to accepts 'bad money' the same way they accept 'good money'. Because otherwise sellers will natural only accept the bad money with a discount or even refuse outright.

You can see that in action in many black markets around the world, where people use American dollars because their local currency is 'bad'.

Wikipedia has a lot of detail and background. https://en.wikipedia.org/wiki/Gresham%27s_law

> Those examples show that in the absence of effective legal tender laws, Gresham's Law works in reverse. If given the choice of what money to accept, people will transact with money they believe to be of highest long-term value. However, if not given the choice and required to accept all money, good and bad, they will tend to keep the money of greater perceived value in their possession and to pass on the bad money to someone else.

Have a look at https://web.archive.org/web/20130317073119/http://eh.net/enc... as well.

The full and proper qualification, as concerns money, is given in the first 'graph of the essay:

"Whenever coins containing precious metals have been used along with base metal coins of the same denomination, both legally accepted as tender, the bad coins have driven the good coins out of circulation."

(Emphasis added.)

The key is that within a given monetary system, "bad" and "good" coin have the same social or statutory (whichever effectively governs) exchange value.

This is not the case in a black-market exchange where U.S. dollars displace local currency, just as it was not the case in the early post-revolutionary United States where commodity currencies (often pelts or grain), or foreign denominations (Spanish "pieces. of eight" reals or English pounds) displaced the much-derided "continental dollar".

The black-market currency does not face the same nominal exchange rate as the inferior currency, but instead has an independent (and almost always far more stable) exchange value. So long as the black-market currency is generally exchangeable for goods and services generally required, and the official currency can be readily obtained for transactions in which. it is mandated -- say, payment of national taxes, you'll see a preference for the black-market currency.

This balance point may be further shifted by mandates that, say, retail, payroll, and banking transactions be in the official currency. In most regions with a substantial black-market role, institutional trust and regulatory and statutory compliance are low enough, and often the true underlying dysfunction, that their role, and hence effective monetary compliance capacity, are effectvely nil.

For what it's worth, I've been exploring Gresham's Law and related dynamics for some time:

https://old.reddit.com/r/dredmorbius/search?q=gresham%27s+la...

Not only cruising ships, but many (most likely, most) commercial vessels are registered under a so called convenience flag. Usually Panama or Liberia.
true that.

not just cruises. nor just leisure and touristic activities either. tons of jobs have similar working conditions. and tbh, i am not sure avoiding or banning these activities is the solution.

i mean, we are not throwing our smartphones away yet, are we?

> tons of jobs have similar working conditions

I get the impression commercial air travel isn't that bad, but it's not great. Cruse ships get away with it by using workers from developing countries. Airlines pitch it as "travel the world" and a lifestyle, so there are a lot of people who want the job. It's like software in the video game industry.

Shipowners try to avoid all sorts of stuff... labor law, environmental laws, taxes, etc. The only US flagged ships are ships that transit between two US ports.

There's beneficial owner who may or may not be easily known. They register the ship in Panama or Liberia. The officers are usually from a western country (depending on the owner or the purpose), crew from a place like Philippines or Indonesia. Some of the customer facing staff may be from a western country as well.

> The only US flagged ships are ships that transit between two US ports.

And that's only because of some really archaic, protectionist laws that are driving up logistics costs for American businesses and keep freight off the waters and on the roads.

True, yet they still want a bailout from the US government...
Hasan Minhaj did a segment on this: https://www.youtube.com/watch?v=0nCT8h8gO1g
US labor laws don't apply in the international waters, if the first place.
I think it's to avoid US laws generally, but labor law is surely a big part of that.