Bus owners withhold lay-offs

The transport authority and the bus owners are to meet this morning in a bid to solve a long drawn out dispute between the two sides focusing mostly on the government's annual subsidy and a reform of the public bus service.

The bus owners grouped under the Public Transport Association had threatened to lay off another 10 workers yesterday in a bid to force the government to yield to their demands, but decided against the lay-offs last night in view of this morning's meeting. The bus owners had threatened last week that they would gradually terminate the employment of 40 of their workforce.

Both sides will await the result of today's meeting to see how the situation will develop.

When contacted, a spokesman for the Transport Ministry said the ministry preferred not to give any comments at this "delicate" stage of the negotiations.

There are two major sticking points in the dispute: the size of the subsidy being requested by the association and the government's insistence on settling it only if linked to talks on reform of the bus service.

The government has threatened to start talks with third parties on operating the service unless agreement on reform is reached within a 90-day period.

The dispute has led to industrial action, including the suspension of the direct service from localities to St Luke's Hospital while buses stop running at 8 p.m. on several routes.

Mr Spiteri said yesterday that his association had agreed to reduce its subsidy request from Lm1.7 million to Lm1.3 million - even if this meant that heavy vehicle drivers were being relegated to earning a minimum wage.

His association was prepared to discuss a five-year subsidy term with the government, but a letter from Transport Minister Jesmond Mugliett last Friday "turned everything back to square one". The government, he said, was insisting that the five-year agreement takes effect from this year, and not 2006 as the PTA was proposing.

The PTA called a committee meeting last night to update members on the situation.