Government rules out overtime pay

Investments Minister Austin Gatt yesterday ruled out re-introducing overtime payments to Malta Shipyards foremen and supervisors, as the General Workers' Union struggled to hang on to these defiant members.

The 125 foremen and supervisors, members of the GWU's metal workers section, last week signed a petition warning they would join the Union Haddiema Maghqudin or form a house union unless the GWU heeded their demand for overtime pay, which they used to enjoy until the signing of a collective agreement for shipyard workers in 2003.

On Friday, The Times reported the union's section secretary responsible for the shipyards, Charles Agius, saying he was "optimistic" that foremen and supervisors would regain their right to overtime payment.

In an e-mail sent after the story was published, Mr Agius said he wanted to clarify that when he said he was optimistic he was referring to the "whole issue", not just the overtime issue.

However, the foremen and supervisors are mainly concerned about overtime: Three of the four demands made in their petition are to do with overtime and the other concerns re-grading. Mr Agius said the metal workers section will continue to hold talks and negotiate to improve the situation of foremen and supervisors even after an agreement between management and union is signed soon. This agreement is meant to clarify certain issues that were left open to interpretation or which arose when the collective agreement for shipyard workers was signed in November 2003.

"Though the new agreement does not contemplate payment for overtime, it contains a clause through which 'various financial proposals' can be made later this year", Mr Agius said. "That is why I remain optimistic, because nothing keeps us from continuing to negotiate after signing the agreement."

The draft agreement has been seen by The Times. The clause Mr Agius is referring to says that the union may propose a review of the salary structure in October and will take into consideration the shipyards' financial performance. However, it does not speak specifically about overtime payment.

Furthermore, the draft agreement declares that there are no outstanding issues.

When contacted, Investments Minister Austin Gatt said he will "not even discuss let alone negotiate" overtime payments to supervisors and foremen, adding that the 2003 collective agreement clearly stated that the grades were non-overtime grades.

"They received a Lm1,000 pay rise to substitute payment for overtime. There is no room for interpretation about this," Dr Gatt said.

The shipyard management too has expressed concern about the petition signed by the foremen and supervisors, saying it raised issues that went against both the collective agreement and the agreement due to be signed shortly.

The most important issue in the new agreement is that it will provide for a fund of Lm65,000, administered by the GWU, to cover allowances to those who have and use more than a single skill.

But overtime payment is of paramount importance for the foremen and supervisors. It was one of the main reasons for the removal of the former shipyard workers' section secretary, Alfred Cassar, who had been one of the union officials who negotiated the collective agreement. He was subsequently replaced by Mr Agius.

Mr Agius said a lot of progress had been made regarding supervisors and general foremen since the collective agreement was signed.

"In the collective agreement they were given a pay rise and were expected to work on an additional 26 weekend days in a year. There was nothing stipulated on extra hours they could work during the week, or when they work on a public holiday or if they work more than the 26 weekend days.

"Hence, through discussions, we have transformed the weekend days into 208 hours and when this extra number of hours is surpassed, they are now paid a fixed rate.

"Payments have already been effected twice and we are now negotiating with management so that the rate would be increased to reflect the cost of living increase," Mr Agius said.

Furthermore, he added, supervisors and foremen would also be paid for unplanned night shifts, whereas this was not catered for in the collective agreement. Neither was the payment they received in sea trials and other work. This issue has now been cleared too and a provision for these payments is made in the new agreement.

Shipyard sources said it seemed the union was now trying to go through the back door by seeking payment for other issues without saying it was "overtime". "But there is a limit to how far one can keep stretching the argument for extra payments," the sources said.

The shipyard sources and Dr Gatt both said it had been agreed at the signing of the collective agreement that there would be further negotiation and clauses needing further interpretation would be clarified.

"And this is what has happened. Overtime for foremen and supervisors never was and will not be part of these or any future discussions," Dr Gatt stressed.