Meeting on second Air Malta rescue plan

A meeting is expected to be held today between Air Malta and the four trade unions representing the airline's employees to discuss the company's financial position and explore the possibility of negotiating another rescue plan.

The first plan was agreed upon last year when the four unions - the Association of Airline Engineers, the Airline Pilots' Association, the maritime and aviation workers' section of the General Workers' Union and the Union of Cabin Crew - had formed a common front, with George Abela as their legal adviser.

That plan included curbs on overtime, increments and allowances, new work practices and worker flexibility. The company had declared that no jobs will be terminated.

In terms of that agreement, 180 employees were granted early retirement. A works council grouping the four unions replaced the worker-director and held monthly meetings with the management to review management accounts and discuss and iron out problems.

Sources familiar with the company said that figures given to the council last week showed an improved financial result for the period April to September but the company was still expected to make a loss by the end of the financial year ending March 2007. Last year it made a loss of Lm6.5 million.

Speaking in Parliament last month, Investments Minister Austin Gatt said there were two options: A new rescue plan or a collective agreement, but he was only prepared to guarantee there would be no dismissals if the rescue plan option was taken.

He said the first rescue plan had been a success and the company had reduced overheads by Lm11 million, despite a Lm5 million increase in its fuel bill.

He acknowledged that over a period of three years the workers had also seen their earnings drop by Lm1.3 million mainly because of cuts in overtime.