Labour relations turn sour at milk plant

Industrial action at Malta Dairy Products looms after discussions on the collective agreement between the Union Haddiema Maghqudin and the management fell through.

UHM section secretary Lino Vassallo did not exclude a complete stoppage of milk production "if the company persists in turning down demands for wage increases".

The UHM, which represents the absolute majority of the workers, wrote to the management yesterday informing it that it was registering an industrial dispute after just two meetings.

"We've been given a take-it-or-leave-it situation. We even presented a proposal for a one-time payment and it was turned down," Mr Vassallo told The Times.

He warned that the union was prepared to order a complete stoppage and that distributors could hold sympathy strikes if the MDP management remained intransigent.

Mr Vassallo said the union had fully cooperated with the company as it embarked on a restructuring process to meet EU standards. Over the last three years, the workers were flexible, as retired colleagues were not replaced. The UHM even accepted certain clauses in the collective agreement that the company wanted to amend.

Despite competition from foreign products, MDP's market share was only down marginally, Mr Vassallo claimed.

But when contacted, Alfred Mallia Milanes, who is negotiating on behalf of MDP, urged the union to take stock of the situation before making unrealistic demands.

"Backed with documents, we explained our financial situation in light of the challenges we faced, and following the millions invested to become EU compliant," Mr Mallia Milanes said.

Competition meant that MDP could not afford to hike up product prices, and strains such as the cost of living increases and the surcharge made the UHM's demands untenable, he added.

"We have to stop pretending we are living in a vacuum and continue negotiating the way we did 25 years ago. The union has to realise that despite the hardships, the company didn't lay anybody off. With responsibility, we simply have to exercise some restraint - wage increases are out of the question," he charged.