Matthew Xuereb
GWU demands task force
Former Malta Drydocks chairman Sammy Meilaq (left) with GWU secretary general Tony Zarb, yesterday. Photo: Darrin Zammit Lupi
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.
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Mario Micallef
Jun 22nd 2008, 20:21
Now nothing is going to be solved by pointing fingers. The workers knew that a nationalist government was never going to be their safeguard because its best interest was always towards those few elite who control this country. Scratch my back and I scratch helps a lot. But the shipyards workers’ were always on top of the list of this government to be demean. I call on the workers not to give the government a walk over. The present Government is a minority one and prior to the general election in his electoral program Dr Gonzi promised that at the shipyards he was not going to do any downsizing. Dr Gonzi your government is obliged to keep to those promises or resign.
The time has come for the labour party as the mainforce in opposition to show that it is there to stop the government from continue rolling all over the workers.
Silvan Said
Jun 21st 2008, 09:51
How sad that the Minister of finance cannot come up with something more imaginative than an early retirement scheme for these workers.
Let me suggest an alternative. Retrain these workers to build a modern and enviable mass transport system in Malta in the form of an electric rail system countrywide. Let us for once truly make a national effort to put our money and the MDD workers to good use to give Malta the transport system it needs and these workers a productive and useful job which truly contributes to our country. They certainly have the skills.
The MDD workers are not lazy as has been said here. They have been mismanaged and their minds usurped by politicians and unions for political power. The MDD has been a dead duck and no one in power had the guts to bite the bullet.
I wonder if the government and opposition can unite on this truly national project, ignore or get rid of useless hangers-on like Tony Zarb (How can he have the gall to try and represent the workers when he has failed them so miserably!)
Brandon Camilleri
Jun 20th 2008, 20:05
I think that one thing is for sure that during the late 80s and early 90s, the people leading the MDD did not notice that the loan of LM150 million provided by the goverment was just an exercise to make them look worse in the eyes of the taxpayers and make them seem big spenders without results. They did not realise that it was the tyingof the rope around their neck and instead tried to do their best to make a lost entity become a pot of debt. I remember new cranes were bought for the ex-Malta Shipbuilding and since then only the 3 Gozo Channel ships were beuilt.
Maybe the reporter should go and check on the number of foreigners hired to do nothing at the shipyards and how a high value contract left only losses behind.
Waiting for your investigation Matthew. It would also be good to have a REAL independent report why the so many reports commissioned by the goverment failed in their application and why the hired consultants did not give the desired results. Employees loose their job for not reaching their goals........who's next at MDD?
James Galea
Jun 20th 2008, 19:24
Excuse me Mr. Farrugia. But not knowing were you work I cannot comment about if you are lazy or not. There are quit a few entities in this country were productivity is poor. I do not want to mention any but I will let you try and guess. To call the shipyard workers lazy is not fair and will just bring hatred between workers. If you ever entered the yard you will know the hard work and conditions our workers go through. I doubt if you will have the courage to board the vessels via the gangway in the first place. Some times it’s better to shut your mouth and look stupid than open it and prove it.
Michael Catania
Jun 20th 2008, 19:13
@ Mr. A Farrugia,
Before passing any derogatory comments on the Dockyard workers you should experience the work they do then maybe you will have the right to comment. While we are on subsidies lets talk where else the government gives subsidies, I am sure there are a lot of other entities which are getting handsome subsidies, maybe you should advocate that theirs should be stopped too. Its highly unlikely that you will do anything because these entities are conservative sacred cows. The workers wages are a small part of the problem in the dockyard . Since we have had a conservative Govt. the Dockyard has been flooded with NON PRODUCTIVE CONSERVATIVE hanger ons. They and the management are the cause for the greatest part of the problem, so please leave the workers alone. No matter how efficient a worker is, if management is useless then the workers will suffer while the inefficient managers get hefty bonuses.
N. Balzan
Jun 20th 2008, 18:53
To read someone's comment that we yard workers are lazy tops it all. I wonder what line of work he is in.
A Farrugia
Jun 20th 2008, 11:11
Yes that's right dear Tony Zarb. Pat the idiot on the back for ruining the MDD. These two guys, one in his personal capacity as Chairman of the MDD and the other as GS of the GWU, the union which ruined the MDD, are the only persons responsible for the bankruptcy of the MDD, by giving its workers huge pay rises, against all logic, and eating up millions of our maltese liri now euros from our taxes, to give them to these lazy workers. Yes ttony, pat him on the back for riding roughshod over the Maltese people. Now is the time to close this white elephant down and retrain the workers in other jobs. We back 100% the Government in this matter.
Joseph E Briffa
Jun 20th 2008, 10:30
I am sorry to say that once more the GWU is putting its partisan interests before those of the dockyard workers and those of the country. I am sure that the GWU knows that the setting up of a taskforce incorporating the opposition will only protract the issue and would only bring trouble in its wake due to politicisation of the matter. The GWU is no doubt aware that the drydocks problem started in 1970 when the late Lorry Sant aided by the GWU started a series of strikes which continued for no less than eight months and helped to bring about the defeat of the Borg Olivier government which was the sole aim of the strikes. Doesn't the GWU realise that taxpayers have already thrown €1.5 billion euro down the drain thanks to the GWU partisan policies? Imagine what could have been done with that kind of money! Does the GWU want to escalate the matter further at the expense of taxpayers money'? Doesn't the GWU realise that the people have had enough of this tomfoolery and want an early solution to this matter which has been protracted because of the irresponsible and intransigent attitude of the GWU?
B Agius
Jun 20th 2008, 10:26
Shouldn't Mr Xuereb include the Opposition's position on this issue in his reporting? This is the second report on the subject where he failed to report what the Opposition stance is. Why?
Renato J. Costigan
Jun 20th 2008, 10:11
70's - 80's - 90's - new millenium and the same old faces.
MILLIONS OF MALTESE LIRI // EURO'S --- DOWN THE DRAIN.
SHAME ON YOU NOW
Ex-Malta DryDocks/Malta Shipyards employee.