Union lifts Shipyards directives

The General Workers' Union yesterday agreed to withdraw directives issued to shipyards employees as a garnishee order was issued against the union.

A 30-minute conciliation meeting at the Director of Industrial Relations' office in Valletta was enough for the GWU to call off its "go slow" directive at the shipyards.

The decision was taken hours after Malta Shipyards Ltd filed a judicial protest in court holding the GWU liable in damages claiming the union was violating the collective agreement and the law.

The company also obtained a Lm50,000 garnishee order against the GWU.

The response to the industrial action was harsh, as the management withdrew all marketing activities and Government Investments Minister Austin Gatt warned that such action could lead to bankruptcy.

Speaking to reporters after the meeting, GWU general secretary Tony Zarb said the directives were withdrawn as soon as yesterday's meeting was confirmed.

Malta Shipyards Ltd agreed to withdraw the garnishee order only if it obtains the approval of the government.

The GWU has demanded that the management pay unplanned night shift arrears to workers by February 11 and has also protested about the use of sub-contractors.

The two sides agreed to establish clear timeframes to "normalise" the commercial activity at the shipyards and finalise certain clauses relating to the collective agreement.

Mr Zarb said the union had now lifted its action as a result of the court action.

"The situation at the shipyards is getting back to normal. We discussed the way forward and the management has agreed to carry on with the negotiations," he said.

He appealed to the government to refrain from making drastic statements about the future of the shipyards. "It is the government which is damaging the shipyards by making certain statements. Certain comments being made are being relayed in the media and this will affect prospective clients," Mr Zarb warned.

Union representatives are expected to meet Dr Gatt shortly.

None of the management's legal representatives wished to comment after the meeting.

On Wednesday, the shipyards' management estimated that turnover would fall by at least Lm2.3 million from projected levels over the next six months as a result of the unrest.

Sources close to the shipyards said that the losses and the repercussions of the GWU action were "massive".