Fishing without a safety net?

By Marta Moran-Quintana (Economics Project Manager, Seafish)

What could fishermen and Deliveroo riders possibly have in common? More than it seems, actually – like not knowing how much you’ll earn next month or how you’ll make ends meet if you get injured.

There are many perks to being a fisherman which make it a way of life, not just a job: being out at sea, resourcefulness, independence and pride in what you do. On the other side is paperwork and uncertainty.

Share fishermen are responsible for their own bookkeeping and money management, and the hard work involved in fishing does not always come with financial stability or accident insurance. On top of this, the state welfare system is ill-equipped to deal with the realities of share fishing, meaning that during hard times fishermen are often unable to access state support and have to cope on their own.

Financial security, particularly among small-scale share fishermen, is a major concern. Tina Barnes, Head of Impact at the Seafarers’ Charity (formerly Seafarers UK) told us more:

The welfare system does not quite work for share fishermen, so people need to ensure they have their own safety net for when they are unable to earn money from fishing.

In September 2020 the Seafarers’ Charity published the report Fishing Without a Safety Net, authored by Dr Paul Anthony Jones of Liverpool’s John Moores University. Paul and his team spoke to fishermen across the country and analysed anonymous records from over 400 users of the Seafarers Advice and Information Line, the Seafarers’ Hospital Society and the Shipwrecked Mariners’ Society. His team investigated the financial situation of small-scale fishermen, their views on the pros and cons of the crew share system and what economic support is available to them.

The results were a harsh reminder of how challenging it can be to make a living from fishing. While not all fishermen struggle with money, those who do can be in a particularly bad position. The problem is not so much low income, but a changeable one, Paul explained:

Share fishermen can have great wages one month, but next to nothing the next. To manage these ups and downs, they need even greater financial management skills than other people.

But learning financial management skills takes a long-term planning mind set and, more importantly, time, something many fishermen lack.

Low or irregular earnings can also mean some fishermen are only able to make few or irregular National Insurance contributions, meaning less capacity to access welfare benefits or a state pension later in life. There is no holiday or sick pay, the latter being particularly relevant given that fishing has a high rate of work accidents. All of these things can add up to severe financial problems during difficult times, which can take their toll on mental health, family and relationships.

To manage the ups and downs, some fishermen have second jobs. The Seafish 2018 Fleet Employment Survey found that 15% of the 730 fishermen in the sample had a second job and that smallscale fishermen were more likely to have a second job. The most common types of additional employment were in trades, other marine industries and working on-board another fishing boat.

As with any complex problem, there is no single, easy way to improve share fishermen’s financial situation.

The Seafarers’ Charity, in cooperation with other associations and organisations, are now working on several projects which they hope will help address some of the main financial challenges fishermen face.

Some of these initiatives, such as a review of the welfare system to ensure it works for everyone, are wider efforts that require government involvement to implement, but other actions are directly targeted at industry.

From summer 2021 the Seafarers’ Charity will work with Seafish to include a module on managing finances in the Introduction to Commercial Fishing course for new entrants. The Seafarers’ Charity will also launch a campaign focussing on financial literacy to raise awareness of the importance of financial planning, share ideas to help fishermen manage their money and inform them of where to go for help or advice.

While fishing is a unique job in many ways, perhaps there are lessons to be learned from other industries. Fishermen aren’t the only self-employed workers in the UK or the only ones dealing with the struggles of a variable income. Tina explained:

This research has made us realise there is a common cause with the self-employed and gig economy workers. Making sure that we are on the same grounds and helping amplify their voices will also benefit the fishing industry.

The gig economy makes frequent headlines and some of its members, like drivers and care workers, are already looking at options to make life and work easier, some of which could also apply to fishermen. Accessing financial services for example, like pensions or loans is a problem for all self-employed, fishermen included. “We asked ourselves: what do other self-employed people do?” asked Tina. “We found there are associations that provide a great range of services for self-employed people like pension schemes, insurance or discounts on everyday items like mobile phones.”

Finding a financial services provider that will accept fishermen has some challenges; for example, some insurers are unwilling to take on clients working in such a high-risk profession. After much research and hard work, in April 2021 the Seafarers’ Charity announced the launch of a new credit union service for UK fishers, fish processors and fishmongers provided by Commsave Credit Union. Members of the credit union will benefit from returns on their savings and new products designed for share fishers, such as a special loan scheme to support access to MMO grants, tax budgeting, bill payment accounts and a bereavement fund.

Seafarers’ research shows that there’s more in common between the gig economy and fishermen than first meets the eye. Both are subject to financial insecurity and uncertainty; as Tina said: “You never know what’s going to come along, whether it’s a broken leg or a pandemic.”

Indeed, if there is something that 2020 taught us, it’s that anything can happen, but having a safety net can help you better deal with whatever the future may bring. As the old saying goes, hope for the best, plan for the worst.

________________________________________________________________

Having a second job is one way of making ends meet for many fishermen

In a sample of 730 workers in the UK fishing industry:

- 15% had a second job

- 65% of those with a second job were small-scale fishermen (working under 10m boats)

The most common types of second job were:

- 28% Trades electrician, fitter, building, roofer

- 11% Fishing on a different vessel than the main one

- 16% Other marine industries ports, ship building, diver, tugboats, ferry work

Source: Results from the 2018 Employment in the UK Fishing Fleet survey, Seafish.

________________________________________________________________

Find out more

The Seafarers’ Charity: www.theseafarerscharity.org

Seafarers Advice and Information Line (SAIL): www.sailine.org.uk or 0800 160 1842

COMMSAVE Credit Union: www.commsave.co.uk/fish