Productivity levels at Marsa 'yard under scrutiny

A human resources exercise just carried out by Malta Shipbuilding is expected to be studied today at a high-level government meeting chaired by Social Policy Minister Lawrence Gonzi, who is chairman of the shipyards restructuring task force, informed sources said yesterday.

Calling the exercise "very extensive" in nature, the sources said it was aimed at analysing productivity levels and how the workers' capabilities and production levels fit into the current and future work of the shipbuilding yard.

"The results also highlight the workforce that is needed and any possible redeployment of some workers to increase productivity."

The sources said that Economic Services Minister Josef Bonnici and 'yards' chairman John Cassar White were expected to take part in today's meeting.

Earlier this week, Prime Minister Eddie Fenech Adami said in an interview that government was formulating a strategy for the next part of the restructuring process at the shipyards.

He said he hoped the government would in the next few months be able to announce measures that would eventually make the 'yards efficient and viable.

This, he said, would inevitably mean reducing the workforce further for it to reach the levels already specified in many reports.

General Workers' Union section secretary Tony Coleiro said yesterday he disagreed that the workforce should be reduced further.

He said: "The shipyards cannot afford to lose more employees. It depends what type of restructuring the government has in mind: does it want to please the European Union or does it want to make the 'yards more viable?"

Mr Coleiro said that in order to make the shipyards viable, efforts should be directed at increasing the volume of work and not reducing the workforce.

"Normally, commercial entities tend to expand, not shrink," he said.

Sources said one of the options being explored by the government to reduce the workforce was the reintroduction of voluntary early retirement schemes, if this is found to be viable.

Around 688 workers recently left Malta Drydocks and Malta Shipbuilding under early retirement and voluntary resignation schemes.

A total of 791 workers had applied, but 67 applications were rejected because the workers involved were considered vital for the 'yards.

The two shipyards made a loss of Lm16.2 million last year, compared with Lm18.6 million the year before.

The government's plan is to make the shipyards viable and phase out state subsidies by 2008.