The deaths of two Filipino fisherman in Fraserburgh has dragged a dark secret into the light

INVESTIGATION By Home Affairs Editor John Bynorth

Filipino fishermen working on Scottish boats are being ruthlessly controlled by job agency bosses from their homeland who force them to take out exorbitant "loans" which have to be re-paid out of their wages.

The practice means that many crews are effectively working unpaid 15-hour days. With salaries of £260-a-month - seven times lower than the wages of Scottish fishermen - they struggle to pay back the "loans" from wages which are directly paid through agencies in Manila.

The Sunday Herald has obtained evidence that some Filipino crews are being forced to pay £1500 to agencies that supply them with work on Scottish vessels to cover unspecified costs, leaving them working for several months for nothing while the money is repaid.

Two weeks ago, Filipinos Ramhel Calepayan, 38, and Benjamin Potot, 33, and a Latvian died in a fire aboard the Vision II in Fraserburgh harbour. The International Transport Workers Federation (ITF) has called for the Scottish government to back their campaign to stop "slavery" among foreign workers in the industry.

Michael Argente, 33, a father of two from Manila, who earns £260 per month aboard The Ranger, a prawn fishing boat out of Mallaig, said he was struggling to repay his 60,000 Peso (£600) loan obtained through an agency five months ago.

He told the Sunday Herald: "I came here with no money and it was hard, so the agency gave me a loan. I have to pay it back every month. It is good money, working in Scotland, and it is better than the Philippines where it is hard to earn good money.

"I am okay as we stay on the boat. We are here to work, we wake up, work and sleep and we are out all day on the boat which leaves at 4am. I am treated well by the captain."

His crewmate Albert Abao, 29, who is also from Manila, added: "I came here six months ago and was not paid - apart from my expenses - because I had a loan to pay off.

"I go back in a month and have only made 100,000 Peos - that is not enough. I think (the Scottish boats) get the Filipinos because it is cheaper.

"The fisherman's salary is higher if he comes from Scotland, but you can't refuse the work. We have no time to think about what other people earn."

Leopoldo Claracay, who founded Super Manning, Manila's largest overseas fishing agency - which supplies 700 of the estimated 1000 crew working on UK registered boats - said that some unscrupulous agencies were not signed up to the Philippine Overseas Administration Scheme (POAS) which aims to ensures that crew are legitimately supplied with short-term "transit" visas by the UK immigration authorities which allow them to work in Britain if they live on their vessel.

Claracay said: "We only charge each member $75 (£35) per month to cover our services which includes paying their wages directly to their families, and deducting the $35 (£15) which they must pay in Philippines social security. We also reclaim some of our costs from the boat owners.

"But there are many other agencies which are making money out of the crews by charging as much as 60,000 Philippine Pesos (£1500) which means they are not receiving any money to send back to their families.

"Our government is supposed to regulate it, but many other agencies are also falsifying visa applications which makes it difficult for crew to complain about it."

Malu Manar, an investigative journalist with the Philippine-based newspaper Balita Pinoy, revealed agencies can charge up to £1500, to cover flights and other "add-ons" for the crews employed abroad.

She said: "The agency will pay for the flights, but the fishermen will effectively end up paying almost £600 on average for processing their application, arranging the visa and other services. It's big business in the Philippines. These companies are effectively loan sharks."

Last week the ITF urged First Minister Alex Salmond, whose constituency includes Fraserburgh, to investigate the issue of "bonded slavery" following the tragedy, and put pressure on Westminster to ratify an International Labour Organisation (ILO) treaty aimed at stopping "some of the worst abuses".

Co-ordinator Norrie McVicar said: "We can prove that agencies in Manila and Jakarta are consistently charging the seafarer for the job. Many are working with forged documents and won't speak out because what they have done is illegal in their own country and they face being blacklisted."

Alisdair MacPhail, a Kyle of Lochalsh fisherman, claimed there are widespread breaches of EU legislation. The legislation states that anyone fishing within 12 miles of the coast is classified as being in UK territory and bound by the Race Relations Act, and therefore must not be discriminated against on the grounds of their nationality.

He added: "For some reason the anomaly has cropped up where you are allowed to pay someone from Manila much less than someone from Fraserburgh if you are outside the 12-mile limit. I don't believe for a minute that any skippers abide by the rule."

Penny Howard, who is researching the Scottish fishing industry for Aberdeen University, said: "Because their airfares have been paid, the Filipinos are indirectly captive for the duration of their contract which means the possibilities for exploitation are high.

"I have heard that skipper and owners who employ Filipinos refer to them as "flip flops" who arrive from the Philippines fresh out of the package and ready to work endless days."

Bertie Armstrong, chief executive of the Scottish Fisherman's Federation, said he was not aware of foreign agencies exploiting Filipino workers through a system of loans. The owner and captain of the Ranger declined to comment.

The families of the Fraserburgh victims will each receive £60,000 from the local branch of The Fishermen's Benevolent Fund to help their needs.