Shipyards restructuring plans 500 more job cuts

The task force on the restructuring of the shipyards is to seek ways of reducing the workforce at the 'yards by a further 500 over the coming year, Social Policy Minister Lawrence Gonzi (picture), chairman of the task force, said in an interview.

The task force will start meeting again over the coming days, Dr Gonzi said.

"The schemes the task force will discuss will be different from those offered last year because now they have to be more focused. Once the core group of workers whom we consider essential for the 'yards have been identified we will have to design very particular schemes for those who do not form part of the core group."

Another "delicate issue" on the task force's agenda is a new collective agreement.

"We are insisting that the new collective agreement should not simply mean a revision of the wages but a means to raise productivity. We want higher productivity, improved efficiency and a multi-skilled and flexible workforce."

The collective agreement expires in December and contacts have already been made about a new one between the management and the General Workers' Union.

Dr Gonzi said a very complicated analysis was being made of the skills of the present workforce after 700 took up the early retirement schemes offered this year.

"This is a crucial and make or break issue. As much as agreeing on the restructuring plan is important, the exercise of identifying the core group of workers is crucial for the success of the shipyards. This is the stage we are in."

In 1987, the shipyards employed 7,000 people. Before the introduction of early retirement schemes last year, their number had declined to 3,400. The workforce is now estimated to be around 2,700.

Dr Gonzi said the restructuring plan included also a re-designing of the balance sheet and of the assets of the 'yards.

"We have to address the issue of the huge debt on the shipyards. We have to reach a situation where there will be a clean sheet to give the 'yards the possibility of a new beginning. All this is being discussed intensely and will be discussed in the task force very shortly."

"I believe the task force has done an excellent job in concluding a restructuring plan which spans a seven-year period with specific targets on the employment levels and the turnover of both 'yards."

The second phase was the initialisation of the plan, including reaching the 2002 target of reducing the workforce at the 'yards by 600 people.

"We did even better than envisaged and we managed to reduce the workforce by 700."

Dr Gonzi welcomed the news that the European Commission had approved the restructuring plan, although it still had to be approved by the individual member states.

"It's good news as the restructuring plan has fitted within the parameters of EU regulations. All that talk that EU membership means the closure of the 'yards has been proven wrong. Now we have the certificate that this is not the case. We are carrying out an exercise which has been recognised by the EU as important and necessary and there is no objection to it. The end result we are aiming for is that we will have a viable sector and we are gaining widespread support for this initiative."

Asked about unemployment in the country, Dr Gonzi said the government was continuously monitoring the situation, although he stressed that relatively speaking having a five per cent unemployment figure was "relatively good".

He stressed that although unemployment was higher than last year, one could not compare the ETC's figures of people actually registering for work with the labour force survey.

"The labour force survey is an important tool which we take into consideration, but it only establishes trends. It is a sample of over 6,000 people which is multiplied by 33. For example, if they had to call me as one of the people sampled and ask me what is my work and I tell them that I am the deputy prime minister, it will be reported that there are 33 deputy prime ministers in Malta. It is a sample and should be regarded as such.

"Furthermore, the age group it covers is between 15 and 65, which is not in line with the age of our working population."

Dr Gonzi underlined positive developments in the labour statistics including a higher number of women in the employment sector, a decrease in the long term unemployed and an increase in the average gross wage.

"In so far as unemployment figures are concerned, one has to keep in mind that the situation in Malta is also influenced by what is happening elsewhere in the world. Having said that, we are in control of the situation and we have managed to create new jobs. We have gone through a very strong restructuring process. For instance, we cannot ignore the fact that between February and May of this year, 700 workers left the two shipyards, a factor which had an impact on the number of gainfully occupied."

Dr Gonzi observed that there was a 4.4 per cent increase in job vacancies recorded in August of this year over July. In August 261 vacancies were advertised.

One also has to take into account that 15,000 individuals were trained by the ETC between 1998 and July, 2002. In the same period 9,539 job placements took place.

Another area where significant results had been achieved, Dr Gonzi said, was in Agenzija Appogg, formerly known as the Social Welfare Development Programme.

Under the Labour government the agency at one point did not have enough money to issue the salaries for its employees, he said.

Today, despite government efforts to control its deficit, the agency had been allocated double the amount of money it had in 1998 and it had four times as many social workers.

"We do not believe in reducing the deficit at the expense of not having social workers."

The same argument, he said, also applied to money voted to the ETC for worker training, and funds had also been allocated for the setting up of the occupational health and safety authority.

"Dr Alfred Sant and Mr Leo Brincat in recent separate interviews in The Times said a Labour government would significantly reduce its expenditure. Will a Labour government force all agencies, including those working in the social field, to cut five per cent from their budget ?

"They have said a Labour government would dismantle entities or agencies set up over the years. I challenge them to name the authorities and agencies that they will remove. Let's be specific. Will a Labour government dismantle the occupational health and safety authority or Agenzija Appogg? Will you sack their employees?"

The social sector, he stressed, needed to continue to be given priority.

"For instance, a new child abuse case is being reported almost every day. This is why we need to have the right tools to deal with these problems. Social workers involved in child protection handled over 1,000 new cases between September, 1998 and April, 2002. During the same period there have been 1,169 new cases of domestic violence. At the same time, over 4,000 persons had made use of the sedqa programmes to help drug addicts.

Dr Gonzi referred to statements made by the opposition, especially by Dr Sant, that drug use was rife.

He said that as in any other country, drugs - both trafficking and abuse - were a significant problem. The police were making very successful breakthroughs on a day by day basis.

The national commission on the abuse of drugs, alcohol and other substances conducted a population survey last year and it was found that alcohol abuse, rather than illicit drugs, posed the bigger problem.

"It is therefore apparent that our efforts need to be focused more on alcohol consumption since it seems that alcoholism is a serious threat to our social well-being."

Looking back at the objectives he set for himself when appointed minister in 1998, Dr Gonzi said he had achieved his major targets, which were the enactment of a new law to strengthen the infrastructure of the then Malta Council for Economic Development, a new law on occupational health and safety and capacity building in that sector and updating the labour and industrial laws

Among his other objectives are legislation on gender equality, which he intends to present to parliament in the coming weeks.

He said a lot of work had been done on a new law on voluntary organisations: "But in reality you start with something simple and then you realise that it is not simple. For instance, most voluntary organisations today operate under the umbrella of a foundation. We do not have any law to cover foundations. Therefore we have first to draw up a law on foundations, which also means further amendments in the civil code.

"We are working on a law which will strengthen the voluntary sector but at the same time instil elements of accountability. We are giving priority to this issue."