Grimaldi won't buy without deal on workers' terms

Grimaldi Group subsidiary Altantica di Navigazione SpA "never agreed" to take over Sea Malta without first having finalised seafarers' employment terms with the General Workers' Union, Ernest Sullivan, Grimaldi's representative in Malta, said yesterday.

Speaking to The Times in the wake of reports that the privatisation of the government's 69 per cent stake in Sea Malta may fall through because "Altantica was fast losing interest", Mr Sullivan said Grimaldi was still "very positive about taking over Sea Malta".

However, he said, Grimaldi would not sign the transfer of shares unless an agreement on the seafarers' tours of duty is reached with the union. The Sunday Times yesterday quoted sources saying that the GWU had backed out of discussions and was refusing to consider anything but the workers' present tour of duty.

At a meeting between Mr Sullivan, the union and Investments Minister Austin Gatt on November 4, Dr Gatt had suggested that Grimaldi should take over Sea Malta on November 18 and the GWU would bind itself to negotiating seafarers' conditions with Grimaldi by the end of this year.

Both the union and the Investments Ministry had issued a statement following the meeting saying that Atlantica was to take over Sea Malta last Friday. The ministry, the GWU and Mr Sullivan had also confirmed in separate statements that workers would be allowed to keep the current 15 days on/15 days off system until December 31 by which date alternative tours of duty should have been agreed upon by Grimaldi and the GWU.

By January 1, in fact, all workers had to choose between a four months on/two months off system, two months on/one month off tour of duty or any other mutually agreed system.

When questioned about the November 4 meeting yesterday, however, Mr Sullivan said there had been no consultation with Grimaldi about the suggestion made by Dr Gatt that Grimaldi should sign the transfer of shares on November 18. He said that at the November 4 meeting, Grimaldi "did not agree to take over Sea Malta while leaving the tours of duty issue pending till the end of the year".

"You have to appreciate that what was suggested at the meeting - and it was towards the end of the meeting - was something out of the blue. There was no consultation with Grimaldi about that point.

"You might say, aren't you their representative?

"Yes, of course I am. However, Mr (Emanuele) Grimaldi's personal view is: 'Let us agree before we sign'," Mr Sullivan said.

He said Grimaldi did not want to operate "and start facing problems from day one".

Without the conditions which Grimaldi are offering Sea Malta employees, the group would no longer be interested in Sea Malta, Mr Sullivan said.

"Grimaldi can't wait for another year until the union decides to agree to the conditions it is offering," he said, explaining that the company had also offered an increase in the pay package to make up for the extra two months of work stipulated under the new systems.

Though the union had asked for more discussions, Grimaldi was making it clear it was not ready to consider anything but the tours of duty it was proposing.

Mr Sullivan said the conditions being offered to Maltese workers were the standard conditions offered to Italian seafarers. "Grimaldi's gesture to employ all the crew was a sign of good will and not an obligation imposed in the bid, and the workers should appreciate that," Mr Sullivan said.

Contacted yesterday, GWU secretary general Tony Zarb said the union was being unfairly accused of backtracking on an agreement reached with Atlantica when it was Grimaldi which had not signed the transfer of shares on November 18, "as they had agreed".

Mr Zarb said the Investments Minister himself had suggested the date for the signing, together with the transition period allowing the union and Grimaldi to negotiate workers' terms.

Despite the differences in view, the GWU still wanted to discuss and wanted to strike a deal "as soon as possible", Mr Zarb said.

The union has asked to meet Mr Sullivan next Wednesday, by when it would have consulted seafarers who are expected to be back today.

"Emanuel Zammit (GWU section secretary) and I spoke to Mr Sullivan last Friday. As far as I know, discussions have not failed," Mr Zarb said.

"I can't understand how the agreement fell through all of a sudden. It is definitely not our fault if Grimaldi is losing interest.

I hope the government is not using the Sea Malta issue to turn public opinion against the GWU protest on Thursday," he said.

Though there were divergent views between the union and Grimaldi, these would hopefully be sorted out in negotiations. "That's what negotiations are for," Mr Zarb said.

Addressing PN activists in Cospicua yesterday morning, Prime Minister Lawrence Gonzi warned that if the Sea Malta privatisation fell through, the company would be closed down and all the workers would lose their job.

Commenting to reporters, Dr Gonzi said Investments Minister Austin Gatt had told him on the phone after the November 4 meeting that the GWU and Altantica had reached an agreement and that Atlantica should have taken over the company by November 18.