While on a cruise in 2021, I spoke with a server who had been working on ships for years. He shared that while the work was challenging, the pay was often not commensurate with the effort they put in. Despite this, he and his colleagues remained dedicated to providing excellent service to passengers. It made me wonder how cruise ships could get away with pay so far below the minimum wage laws. If you have ever been on a cruise ship then you probably noticed the amount of effort going into making these million-dollar vessels run. Cruise ships are some of the most complex and technologically advanced vehicles. They require incredible engineering and planning to keep them running smoothly. According to industry experts, “the largest cruise ships can weigh up to 225,000 tons and are over 1,000 feet long”, making them some of the largest man-made vehicles in the world (Berlunga 82). It might seem obvious that a boat as big as a 12-story building must require many employees to keep customer satisfaction rates high, with ships like the Royal Caribbean Melody of the Seas employing over 1000 on-deck employees. But the question arises: how does the cruise ship afford so many employees? What are the living conditions? Why do people work for less? And, how can cruise ships avoid minimum wage laws? According to a report by Business Insider, many cruise ship workers are underpaid for the work they put in. Some workers reportedly earn “as little as $500 per month”, which is far below the minimum wage in most countries (McGee 19). This is despite cruise ships generating billions of dollars in revenue each year. Though the cruise ships make so much, the sheer cost of their expenses does not allow them to pay 1000 workers, even if it’s minimum wage. This has led to concerns about the exploitation and mistreatment of cruise ship workers. Some workers have even filed lawsuits against cruise lines for wage theft and other labor violations.
So how do cruise ships still manage to get away with scamming their workers? Cruise ships abuse little-known laws placing their company and sailing their ships under certain countries from the Caribean. These ships are technically “part of the country it flies under and follows the laws of the country it flies under” (Yuno 22). So even though the ships are made, set sail, and return to port in the United States, they are part of another country. Usually “the countries include Panama, Malta, or The Netherlands which all have laws allowing the workers aboard to work for less than $5 an hour” (McGee 4).
Many people think that the workers are tricked into signing contracts to work on the ships but usually, the workers are happy to work for that price. Cruise sites are targeted towards foreign countries where people escape famine and a ship that pays you to escape from all of that sounds like a good deal. “People believe the ships are better than their current situation but in reality, they are separated from their family making pennies” (Shannon 32). Technically this is legal and the cruise ships are not outside of the law but it is still undignified, especially for a multi-billion dollar industry.
But how is it legal to allow below-minimum-wage workers to work in American territories? Since most cruises depart and dock on American soil, they still abide by the American jurisdiction, which includes hundreds of minimum wage laws that technically, the ships are actively breaking. But, the government cannot enforce these laws upon the ships as they are not American boats. If you have ever been on a cruise ship then you probably noticed that instead of American flags, there are Caribbean flags on the mast. This is because as long as the cruise ship is not American, it doesn’t have to follow American laws, even when it's on American soil.
If the workers are working for so little, how are the living conditions on the ship? With workers traveling the world on these boats, it’s not surprising that the job probably has many benefits to it. But what part of this 225,000-pound ship is reserved for crewmates? “Crewmates typically live with a roommate in tiny cabins that have bunk beds and small closets” which are not ideal living situations for anyone (DePascale 13). Though the sleeping arrangements might not be great, some credit has to be given to the break rooms. They are described as “luxurious, spacious, and a great way to end a hard day's work” (DePascale 15).
Living on a cruise ship might feel like a dream to some, but imagine being separated from your family for 6-8 months every year and coming home with just a few thousand dollars to spend. These cruises circumvent minimum wage laws by flying under different countries and exploiting the carefully placed laws of the United States through a series of loopholes. So next time you go on a cruise, be sure to leave your room service a nice fat tip!
Work Cited:
DePascale, Erica. “What It’s like Living on Cruise Ship Full-Time, from Employee + Photos.” Business Insider, Insider, 18 July 2023, www.businessinsider.com/what-its-like-where-cruise-ship-crew-lives-photos-2021-10#:~:text=I’ve%20worked%20on%20cruise%20ships%20for%20over%20six%20years,work%20at%20the%20crew%20bar. Accessed 20 Feb. 2024.
“Cruise Ship Worker.” ZipRecruiter, ZipRecruiter, 2024, www.ziprecruiter.com/Salaries/Cruise-Ship-Worker-Salary#:~:text=As%20of%20Feb%205%2C%202024,be%20approximately%20%2423.56%20an%20hour. Accessed 12 Feb. 2024.
Shannon, Hannah. “I Worked on a Cruise Ship, but the Pay and Schedule Weren’t Worth It.” Business Insider, Insider, 23 Feb. 2023, www.businessinsider.com/cruise-ship-job-long-hours-low-pay-no-days-off-2023-2. Accessed 12 Feb. 2024.
“Foreign Flagged Cruise Ships | Why Cruise Lines Are Foreign Flagged.” Cruisejobfinder.com, 2024, www.cruisejobfinder.com/fm/cruises/foreign-flagged-cruise-ships.php. Accessed on 12 Feb. 2024.
McGee, Bill. “Why Are Cruise Ships Registered in Foreign Countries?” USA TODAY, USA TODAY, 11 Dec. 2012, www.usatoday.com/story/travel/cruises/2012/12/11/why-are-cruise-ships-registered-in-foreign-countries/1760759/. Accessed 12 Feb. 2024.
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