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MINISTRY OF TRANSPORTATIONMINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME:NGUYEN HOANG NAM DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS SUGGESTIONS TO IMPROVE THE PROCEDURES OF RECRUITMENT& TRAININGFOR SEAMEN AT VINIC HAI PHONG – 2015 MINISTRY OF TRANSPORTATIONMINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME:NGUYEN HOANG NAM CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS SUGGESTIONS TO IMPROVE THE PROCEDURES OF RECRUITMENT& TRAININGFOR SEAMEN AT VINIC Supervisor: Vuong Thu Giang Division: Basic Economics Faculty: Economics HAI PHONG – 2015 Suggestions to improve the procedures of recruitment & training for seamen at VINIC Suggestions to improve the procedures of recruitment & training for seamen at VINIC PREFACE I declare that this report is my own unaided work. It has not been submitted before. If violated, I am solely responsible for and bear the punishments of the Institution and University. Student Name and Signature Nguyen Hoang Nam Nguyen Hoang Nam – GMA02 Page i Suggestions to improve the procedures of recruitment & training for seamen at VINIC ACKNOWLEGEMENT Firstly, I would like to express my sincere gratitude to my advisor MSc. Vuong Thu Giang for the continuous support of my graduate study and related research, for his patience, motivation, and immense knowledge. Her guidance helped me in all the time of research and writing of this thesis. I could not have imagined having a better advisor and mentor for my study. Also I would like to express my thanks to the staff of the Company VINIC whom has been very helpful and generous during my internship at the office of the company. During this period, I also had the opportunity to observe some of the company’s procedures, two of which have inspired to conduct this topic for my dissertation. Nguyen Hoang Nam – GMA02 Page ii Suggestions to improve the procedures of recruitment & training for seamen at VINIC TABLE OF CONTENTS PREFACE ................................................................................................................... i ACKNOWLEGEMENT ............................................................................................. ii TABLE OF CONTENTS ........................................................................................... iii LIST OF ABBREVIATIONS .................................................................................... vi LIST OF TABLES.................................................................................................... vii LIST OF FIGURES ................................................................................................. viii INTRODUCTION ...................................................................................................... 1 Necessity of the research ............................................................................................ 1 Research Object .......................................................................................................... 1 Research scope ........................................................................................................... 2 Research findings ....................................................................................................... 2 CHAPTER 1: METHODOLOGY .............................................................................. 3 1.1 Relating terms ....................................................................................................... 3 1.1.1 Ship crew & Seamen (By the Vietnam Maritime Law, number 40/2005/QH11) . 3 1.1.2 Ranks of seamen ................................................................................................ 4 1.2 Basic definitions ................................................................................................... 4 1.2.1 Recruitment ....................................................................................................... 4 1.2.2 Training ............................................................................................................. 5 1.3 Laws and regulations affecting the procedures of recruitment and training for seamen ........................................................................................................................ 5 1.3.1 National laws ..................................................................................................... 5 1.3.2 International laws ............................................................................................. 10 1.3.2.1 International Convention for the Safety of Life at Sea – SOLAS 1974 ......... 10 1.3.2.2 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers-STCW 78/95 ............................................................... 11 1.3.2.3 Maritime Labor Convention, 2006 (MLC, 2006) .......................................... 11 1.3.2.4 Quality management systems – ISO 9001:2008 ........................................... 11 1.4 Factors affecting the procedures of recruitment and training ............................... 12 Nguyen Hoang Nam – GMA02 Page iii Suggestions to improve the procedures of recruitment & training for seamen at VINIC 1.4.1 Factors within the organization ........................................................................ 12 1.4.2 Factors outside the organization ....................................................................... 14 1.5 Content of the procedures ................................................................................... 15 1.5.1 Recruitment ..................................................................................................... 15 1.5.2 Training ........................................................................................................... 17 CHAPTER 2: THE PROCEDURES OF RECRUITMENT AND TRAINING FOR SEAMEN AT VINIC................................................................................................ 19 2.1 Introduction of the company ............................................................................... 19 2.1.1 General information ......................................................................................... 19 2.1.2 Function, duty and business majors of VINIC .................................................. 20 2.1.3 Organization .................................................................................................... 22 2.1.4 Business analysis, period 2012-2014 ................................................................ 27 2.1.5 Analysis of the HR at VINIC ........................................................................... 28 2.1.5.1 Scale of labor ............................................................................................... 28 2.1.5.2 Scale of labor by degrees of education ......................................................... 29 2.1.5.3 Scale of labor by age groups ........................................................................ 31 2.2 Evaluation of the procedures of recruitment and training for seamen at VINIC ... 33 2.2.1 The procedure of recruitment ........................................................................... 33 2.2.1.1 Content of the procedure .............................................................................. 33 2.2.1.2 Strengths ...................................................................................................... 34 2.2.1.3 Weaknesses .................................................................................................. 35 2.2.2 The procedure of training ................................................................................. 36 2.2.2.1 Content of the procedure .............................................................................. 36 2.2.2.2 Strengths ...................................................................................................... 38 2.2.2.3 Weaknesses .................................................................................................. 38 CHAPTER 3: SUGGESTIONS TO IMPROVE THE PROCEDURES OF RECRUITMENT AND TRAINING FOR SEAMEN AT VINIC.............................. 40 3.1 The short-term strategies and short-term targets of VINIC .................................. 40 3.2 Suggestions to improve the procedures of recruitment and training seamen at VINIC....................................................................................................................... 41 Nguyen Hoang Nam – GMA02 Page iv Suggestions to improve the procedures of recruitment & training for seamen at VINIC 3.2.1 Suggestions to improve the procedure of recruitment for seamen at VINIC ..... 41 3.2.2 Suggestions to improve the procedure of training for seamen at VINIC ........... 44 CONCLUSION ........................................................................................................ 47 References Nguyen Hoang Nam – GMA02 Page v Suggestions to improve the procedures of recruitment & training for seamen at VINIC LIST OF ABBREVIATIONS HR: Human resources PSC:Port-State Control MOU:Memorandum of understanding Ltd.: Limited Liability SOLAS:International Convention for the Safety of Life at Sea MLC:Maritime Labor Convention Nguyen Hoang Nam – GMA02 Page vi Suggestions to improve the procedures of recruitment & training for seamen at VINIC LIST OF TABLES Table 1. Statistics of Vietnamese fleets held by PSC................................................1 Table 2. Business results of the Company, period 2012-2014 ................................ 27 Table 3. VINIC's scale of labor. 2012-2014 ........................................................... 28 Table 4. Scale of labor by degrees of education ..................................................... 29 Table 5. Scale of labor by age groups .................................................................... 31 Table 6. A model of the basic content of the training plan...................................... 44 Nguyen Hoang Nam – GMA02 Page vii Suggestions to improve the procedures of recruitment & training for seamen at VINIC LIST OF FIGURES Figure 1. The overview of procedures in company VINIC ..................................... 21 Figure 2. Model of VINIC’s organization .............................................................. 22 Figure 3. Scale of labor by degree of education...................................................... 29 Figure 4. The recruitment procedure of VINIC ...................................................... 33 Figure 5. The training procedure at VINIC ............................................................ 36 Nguyen Hoang Nam – GMA02 Page viii Suggestions to improve the procedures of recruitment & training for seamen at VINIC INTRODUCTION Necessity of the research Table 1. Statistics of Vietnamese fleets held by PSC PSC Organization Tokyo-MOU Indian-MOU Paris-MOU No. of ships being No. of ships being Rate of ships being checked held held (%) 2013 2014 2013 2014 2013 2014 767 732 47 26 6.13% 3.55% 44 35 6 5 1.63% 14.2% 5 2 4 1 40% 25% Source: Department of Vietnamese registration of shipping The above table illustrates the data of Vietnamese fleets being checked and held for detention by the international PSC. Overall, by the end of 2014, the number being held by all three organizations has decreased significantly, nominally in Paris-MOU with only one in four ships being held. Vietnamese fleets which were held by Tokyo-MOU and Indian-MOU also dropped considerably, however, this still proves that our fleets still remain inferior. Vietnamese fleets are checked and held by international organization every year and the major reasons are from the quality of the seamen: insufficient qualifications, ship owners have not had sufficient concern to the status of the seamen; The conduct of the regulations of the International Convention for the Safety of Life at Sea (SOLAS) is still being neglected; The professional skills, experience and communicating by foreign language of Vietnamese seamen are still deficient; The supervising and inspecting and granting certificates relating to SOLAS of our departments still have their limitation. Therefore, improving the quality of seamen is the most important objective of the relating departments in Vietnam, as it is necessary to enhance the position of Vietnam in the international labor market, as well as providing the well-qualified human resource for the highly demanded market. Research Object The research aims to analyze the actual state and determine the causes of the disadvantages in the procedures of recruitment and training for seamen, with VINIC Company as the primary subject. Then, it will give some suggestions to improve the recruitment and training procedures forseamen at the company. Finally, it purpose is Nguyen Hoang Nam – GMA02 Page 1 Suggestions to improve the procedures of recruitment & training for seamen at VINIC to complete a certain part in the steps of improving the quality of Vietnamese seamen. Research scope The research will focus on the proceduresrecruitment and training forseamen at several important aspects, in which many of those will concern the matters of maintaining and enhancing the quality of seamen, ensuring a stable source for the need of labor from the ship owners, namely the internationalship owners. Research findings - In the researching aspect: contributing to complete the argumentative system of managing seamen in Vietnam and international market. - In the reality aspect: suggesting a number of solutions in order to improve the available procedures of recruitment and training for seamen. - This research takes advantages of the seniors’ dissertation with the same topics directly or indirectly relate to this research’s aims; it also takes several references from Vietnamese law and regulations system, as well as international sources such as the conventions, foreign laws on seamen. Furthermore, it uses the available data of the company in research, VINIC and analyzes them thoroughly in order to give propose suggestions to the matter. Nguyen Hoang Nam – GMA02 Page 2 Suggestions to improve the procedures of recruitment & training for seamen at VINIC CHAPTER 1: METHODOLOGY 1.1 Relating terms 1.1.1Ship crew &Seamen (By the Vietnam Maritime Law, number 40/2005/QH11) Ship crew: all of the seamen within the safe manning of vessels, including captains and other titles arranged to work on vessels. (Point 45: Ship crew) Seaman working on vessels (Point 46): 1. Individuals who have sufficient conditions, standards to undertake the positions on Vietnamese ships; 2. Seamen working on foreign ships must have the following conditions; a. Are Vietnamese citizens or foreign citizens who are allowed to work on Vietnamese ships; b. Have sufficient health conditions, suitable age of labor, qualification and professional certificates as regulated; c. Are arranged to a certain position on the ship; d. Have seaman’s book. e. Have seaman’s passport to enter or leaving a country, if the seaman is arranged to work on ships that operate on international sea routes. 3. Vietnamese citizens having sufficient conditions are allowed to work on foreign ships. 4. Minister of The Ministry of Transport defined specifically on ranks and responsibilities per rank of seamen, minimum safe manning, professional standards and qualification certificates of seamen, seaman’s license, passport and book and the conditions for Vietnamese seamen to be allowed to work on a Vietnamese ships. 5. Minister of The Ministry of Health Care co-ordinates with Minister of The Ministry of Transport to regulate the health standards of seamen to work on a Vietnamese ships. Responsibilities of seamen on foreign ships (from Point 47): Vietnamese seamen who work on foreign ships have the responsibilities to conduct the contract signed with the ship owners or the international labor users. Nguyen Hoang Nam – GMA02 Page 3 Suggestions to improve the procedures of recruitment & training for seamen at VINIC 1.1.2 Ranks of seamen - Captain: has the right to control the ship. - Chief Officer: deck officer that has the rank right under the captain and is the one who control the ship under the circumstance that captain loses this ability to control. - Chief Engineer: the highest-rank officer with the responsibility of physical force of the ship, the ship’s procedure as well as preservation of the mechanical equipment and electricity of the ship. - 2nd Engineer: mechanical officer with rank right under chief engineer and is responsible for the physical force of the ship under the circumstance that chief engineer loses his ability to control. - Radio officer: individuals with suitable certificate provided by training center under regulations of radio controlling. - Sailor: member of the crew, is neither captain nor officer. 1.2 Basic definitions 1.2.1 Recruitment In the popular understanding, recruitment is defined as “the process of searching and hiring the best-qualified candidate, within or outside of an organization, for a job opening, in a timely and cost effective manner” (Various authors, 2013). Another explanation for recruitment is “Recruitment is a positive process of searching for prospective employees and stimulating them to apply for the jobs in the organization. When more persons apply for jobs then there will be a scope for recruitment better persons.” (Edwin B. Flippo). The procedure of recruitment is the process of finding out the sources from where required individuals will be available for recruitment, developing the techniques to attract the suitable candidates and stimulating as many applicants as possible for the jobs. In order to select a best person, attraction is needed. * Seamen recruitment: Article II, paragraph 1(h) of the MLC, 2006 defines a seamen recruitment and placement service as “any person, company, institution, agency or other organization, in the public or the private sector, which is engaged in Nguyen Hoang Nam – GMA02 Page 4 Suggestions to improve the procedures of recruitment & training for seamen at VINIC recruitment seafarers on behalf of shipowners or placing seafarers with ship owners” 1.2.2 Training Training in business term can be defined as the organized activity aimed at imparting information and/or instructions to improve the recipient's performance or to help him or her attain a required level of knowledge or skill. Additionally, training could also be understood as “the process of guiding newer employees by the experienced employees or from the outsider who are expert on those specific fields to extend and develop capabilities for better job performance and for a specific role in the workplace it involves transfer of gathered knowledge from training, skills and behaviors.” (Various Authors, 1999) Depending on the job natures, sometimes the senior employees guide juniors in their daily office works where they share their experience in problem solving; actually it is not training but simply sharing knowledge, skill and experience, and it does not become a schedule, just when juniors are required to come to help. Primarily, the training is to guide employees in carrying out a specific job or to increase their skill, knowledge, and behaviors. If a person is available in the organization that is qualified enough for training then an in-house training could be arranged; otherwise the organization will need to hire an expert from outside the organization. * Training for seamen: the activity that assist seamen in harnessing knowledge and temper their skills necessary for the demanded tasks. 1.3 Laws and regulations affecting the procedures of recruitment and training for seamen 1.3.1National laws The regulations of educating and granting certificates of Vietnam (By the Decision of the Ministry of Transport No. 31/2008/QD-BGTVT on Dec.26, 2008) * The regular conditions to granting the Certificate of qualification for the seamen: - Seamen must have sufficient age of labor and health standards as per regulations. Nguyen Hoang Nam – GMA02 Page 5 Suggestions to improve the procedures of recruitment & training for seamen at VINIC - Seamen have graduated from the majors of ship navigation or ship exploitation in the maritime-majored universities. - Seamen with the following circumstances must study complementarily the subjects that have not been completed: Graduated from the majors as defined at Item 2 of this Clause but in other universities; Graduated from similar majors in other universities specializing in educating the maritime majors; Graduated from major of waterway vessel navigation or similar majors in schools specializing in those majors. - Seamen have sufficient papers as per regulations. - Seamen have sufficient qualification and time to assume the positions corresponding to the ranks as defined by regulations. - Seamen must have the certificate of foreign language efficiency corresponding with level A, B or C of English or an equivalent certificate of Japanese efficiency. * The regulation of examination and granting Certificate of professional ability for seamen - Vietnam Maritime Department is the managing bureau representing the government of the maritime major, delegated by the Minister of the Ministry of Transport to direct and guide the training, examining and granting and exchanging the Certificate of professional ability for seamen to work on foreign ships. - Annually, Vietnam Maritime Department directs the operations of opening the training courses and organizing the tests to granting certificates for the professional s for seamen being the captain and officer ranks, boatswain, chief engineer, sailor and engineers. - Vietnam Maritime Department decides to establish the examining council for each test depending on the content and scale of each training course. The council consists of the following members: + Council Chairman is delegated by Vietnam Maritime Department. + The members are: representatives from the functioning board of Department; the head of training center; representatives from the agencies of The Ministry; the head of the judges of the test. Nguyen Hoang Nam – GMA02 Page 6 Suggestions to improve the procedures of recruitment & training for seamen at VINIC - The examining council, in order to grant certificates of professional knowledge for seamen, has the responsibilities to counsel the Vietnam Maritime Department about organizing the operation of directing and supervising the maritime ranks examination. - Based on the reports of the council, Head of Vietnam Maritime Department decides to acknowledge the pass to grant or exchange the certificates of professional knowledge for the seamen. Seamen who participate in the examination meet the condition of all the test subjects as regulated will be acknowledge as passed and have the right to conduct the internship on ships as regulated. In case seamen only pass half of the number of the test subjects, the results of this subjects will be saved within the period of one year. - All of the certificates of qualification granting for seamen and special training papers have the validity within five years from the granting day. When expired, if one wished to extend, exchange or receive a new one, the seamen must have the following conditions: + Age and health suitable as regulated. + Guarantee the suitable rank as in the certificate of qualification, granting in twelve months within five years. + Seamen who were granted the certificates but do not work offshore within three years wish to be re-granted or re-confirmed to use must pass the examination and demand as regulated. + In case seamen have mistaken in qualification, violating the law, leaving consequences, then depending on the level of violation, Head of Vietnam Maritime Department has the right to temporarily or permanently revoke the certificate that has been granted for that seaman. *Types of certificates of qualification(in the Decision of the Ministry of Transport No. 31/2008/QD-BGTVT on Dec.26, 2008) Clause 13. Category and forms of certificates 1. The certificates of seamen on Vietnamese ships consist of the following types: Nguyen Hoang Nam – GMA02 Page 7 Suggestions to improve the procedures of recruitment & training for seamen at VINIC a. Certificate of professional ability b. Certificate of basic training c. Certificate of special training d. Certificate of professional competence’s training 2. Forms of the certificates in Appendix I of this Decision. Clause 14. Certificate of professional ability 1. Certificate of professional ability is granted by Head of Vietnam Maritime Department to seamen to assume the positions as in regulations related to the law of Vietnam and suitable to STCW Convention. 2. This type of certificate has the validity within five years starting from the date of issue. Clause 15. Certificate of basic training 1. This type of certificate is granted by the training facility to seamen, trainees that complete the basic training course of rescuing technique, fire safety, basic medical first-aid, human safety and social responsibility as in regulations of Ministry of Transport, suitable to STCW Convention. 2. This type of certificate has no expiration date. Clause 16. Certificate of special training 1. This type of certificate is granted by the training facility to seamen, trainees that complete one of the special training courses as in regulations of Ministry of Transport, suitable to STCW Convention, as follow: a. Getting used to oil tankers, chemical tankers, liquefied gas tankers, passenger ships or RO-RO. b. Enhancing the exploitation of oil tankers, chemical tankers or liquefied gas tankers. c. Crowd management d. Passenger safety, cargo safety and the intact status of ship hull. Nguyen Hoang Nam – GMA02 Page 8 Suggestions to improve the procedures of recruitment & training for seamen at VINIC e. Crisis management. f. General safety. 2. This type of certificate has the validity within five years since the issued date. Clause 17. Certificate of professional competence’s training 1. This type of certificate is granted by the training facility to seamen, trainees who complete one of the professional competence’s training courses as in regulations of Ministry of Transport, suitable to STCW Convention and other international conventions that Vietnam is a member of those, as the following: a. Observation and radar diagram b. ARPA – Automatic radar plotting aid c. GMDSS - Global Maritime Distress and Safety System: GOC rank (General Operator’s Certificate), ROC (Restricted Operator’s Certificate). d. Advanced fire fighting e. Medical first-aid f. Medical healthcare g. Life rafts, rescue boats. h .High-speed rescue boats i. Ship security officer j. Workforce management in deck k. Workforce management in engine room l. Maritime English m. Digital nautical chart n. Ship safety management Nguyen Hoang Nam – GMA02 Page 9
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