GWU demands inquiry into shipyards' contract

The General Workers' Union has asked the government to hold an inquiry into a conversion contract that could cost Malta Shipyards €46.59 million (Lm20 million) over two years.

It also insisted that the shipyards' executive management should either explain or be held responsible.

The chairman and the CEO of Malta Shipyards could not be contacted for comment yesterday evening.

Reacting to these comments, the ministry for Infrastructure, Transport and Communications said in a statement last night that the GWU wanted to wash its hands of its responsibility for the low levels of production that have led the company into an unsustainable financial situation. The truth of the matter is that a big part of the negative impact on this contract lay in workers not finishing the work on time and jobs which had to be redone.

In fact, the level of productivity was the lowest when compared with that registered at the 'yards in 2004, 2005 and 2006.

The client had repeatedly protested with the management about low productivity rates and the lack of planning by those who are supposed to be in charge of the work force, the ministry claimed.

On its part, the union said that although it had been denied detailed financial information in breach of Legal Notice 10 of 2008, it researched the information in a bid to safeguard the interests of workers.

It said it learned that the executive management had decided to exclude the involvement of the shipyards' management from this contract.

The executive management brought over a foreign expert to draw up the contract. This expert was legally bound to the shipyard for three years but the executive management let him go after six months.

On this point, the ministry said it was not correct to say that the marketing executive was laid off.

He left on his own accord. One of the reasons for his departure being his frustration about the situation at the shipyards when compared to other 'yards where the thrust of the industrial relations is one based on the success for the company.

While the sum quoted by the GWU was "grossly exaggerated", the union had been regularly informed about the financial situation, the ministry added.

The GWU said that the conditions of conversion were detrimental to the shipyards and this could be seen from the fact that works had to be altered three or four times with the subcontractors making money and the shipyards incurring losses.

Malta Shipyards, the union added, would not even recover the expenses for the material, equipment and subcontractors when there was no reason whatsoever why it should not make a profit from these sectors.