GWU demands task force

The General Workers' Union yesterday called on the government to set up a special task force to discuss, and possibly secure consensus on the future of Malta Shipyards.

The proposal came a day after the government announced its decision to set the ball rolling for the privatisation of a company that has been siphoning millions of euros from the Exchequer for several years, given that it has rarely been profitable.

Several task forces were set up in the past, mainly to come up with a plan on how to restructure the company and make it viable, but these scored little success.

GWU general secretary Tony Zarb said the union was aware of the immediate challenges the shipyard was facing and was convinced that, through constructive dialogue, important decisions can be taken in everyone's best interests.

The high-level task force the union was proposing should be composed of representatives of the government, the opposition and the GWU.

"The union feels that the prevailing national economic situation warrants full cooperation in order to safeguard the livelihood of the shipyard workers and that of their families," he said.

Mr Zarb said the union was satisfied with the government's and the opposition's commitment to cooperate in order to safeguard the interests of the country and those of the employees. He noted that the government had described the privatisation of Malta Shipyards as a national project.

The GWU was not pleased that the government made its plans public before consulting it as the workers' representative. The plans were announced shortly after the union had submitted its proposals on how to make the company viable and after the government had told the union to have talks with Transport Minister Austin Gatt.

The union's report, based on the Appledore Report drawn up about 10 years ago, was still relevant, whether the company is publicly or privately run, Mr Zarb said.

Tony Murphy from the European Metal Workers' Federation, which represents 70 unions embracing 6.5 million workers, said the government had ignored the European directive for workers to be informed and consulted. He insisted that a viable future for the yard is "achievable if there is the will to seek it".

Earlier yesterday, Finance Minister Tonio Fenech wrote to Mr Zarb inviting him for talks on the privatisation plans and an early retirement scheme for yard workers in a meeting set for next Friday.

Asked for his reaction to the invitation, Mr Zarb said the union had first to see what developments there would be and whether the government would accept its proposal to set up a special task force.

Mr Zarb said that, at an information meeting at their workplace yesterday morning, shipyard workers were briefed about the situation by the union.

The workers were anxious about their future and were genuinely worried about the state of affairs. He said the union was not inciting workers.

Mr Zarb said the GWU was not opposing privatisation as a general rule, adding that the situation had however to be seen in its entirety. There had been lots of mismanagement cases at Malta Shipyards, he charged.

History of Malta Shipyards

The government's announcement of its intention to privatise Malta Shipyards is just another chapter in the long and tortuous history of shipyards in Malta.

Originally conceived as a military ship repair yard, the shipyard in Malta became a commercial operation following a decision taken by the British colonial government in 1959.

The shipyard was transferred from the Admiralty to the management of Baileys (Malta) Ltd.

Amid losses and industrial unrest, in 1963 the dockyard was entrusted to a Council of Administration formed of the British and Maltese government.

Swan Hunter managed the shipyard without success for five years and in 1968 the shipyard was nationalised. In 1975, the management of what was now known as Malta Drydocks was transferred to a management council elected directly by the workers.

Profitability was rare and, as problems mounted, the government again assumed direct management of the shipyard in 1997. Following the setting up of a special task force, in 2003 Malta Drydocks and Malta Shipbuilding were dissolved and replaced by a new company, Malta Shipyards, with its workforce reduced to 1,700 from 2,600. The excess workers were transferred to government departments or local councils.

Since 2002, the government has invested €825 million (Lm354 million) in the dockyard. A total of about €700 million (Lm300 million) in debts accumulated over the years were written-off during this restructuring and reorganisation process. Moreover, €124.4 million (Lm53 million) were provided to the company in operating aid, training grants and capital subsidies.

Direct state subsidies to the shipyards are due to stop at the end of this year, as agreed with the European Union during Malta's pre-accession talks.