GWU willing to lobby Brussels

The General Workers' Union feels that the government should lobby with the European Union to be allowed to continue subsidising Malta Shipyards in view of the "special circumstances" that exist in Malta.

A 19-page report compiled by the GWU was submitted to the government earlier this month. Entitled A Report On The Malta Shipyards With Direct References To The Appledore Report (1997), the report, a copy of which was seen by The Times, goes through a number of points raised by the Appledore Report compiled 11 years ago and, point by point, expresses its opinion on how this could be applied today.

The union charged that if the government was not prepared to make its case with the EU with regard to the special circumstances prevailing in Malta, the GWU "reserved the right" to directly contact Brussels itself about the matter.

Throughout the report, the union blamed the company's executive management for the bad decisions it had taken in recent years and which, according to the union, resulted in lack of motivation for workers. The union proposed a fully-fledged restructuring exercise of the executive management sector so that the company would score positive results.

The GWU also complained that the management should not keep it in the dark on the company's financial situation and insisted that, being one of the main stakeholders, it should be kept informed about everything related to the company and its management.

Referring to the issue of flexibility, which was mentioned extensively in the Appledore Report, the union said the concept of "variable remuneration" - another word for overtime - should not be abolished. The foreign managers employed at Malta Shipyards who, in its opinion, were not required, should have their employment terminated immediately.

On this point, the Appledore Report had recommended that foreign managers should be employed due to the experience they would bring along with them to Malta.

The GWU quoted the Appledore Report as saying that Malta Shipyards should concentrate on ship repairs as its core activity, claiming that the management in recent years had abandoned this aspect of the business.

However, the Appledore Report spoke specifically about "diversification" and how the company should look at other activities to provide employment for the two-thirds of the 3,000-strong workforce who were, at the time, "unproductive".

The union's report also makes reference to performance-related pay, which is a form of bonus given to employees when a project is completed on time and effectively. The union was opposing this but wanted to retain the overtime regime.

The GWU admitted that Appledore's recommendations on the company's council were "obsolete" but made a rather surprise declaration when it said it was no longer insisting that workers should be represented on the company's board of directors.

With regard to the Ricasoli Tank Cleaning Installation, the GWU quotes the Appledore Report as recommending that this should remain part of the company's business but, since 1997, this installation has rarely been used. However, the GWU is insisting that this work was "vital" although used only a couple of days a year.

Even on the Manoel Island Yacht Yard, the GWU believes this should continue to form part of Malta Shipyards but the Appledore Report had recommended it be privatised or given to a strategic partner to operate and manage.

An interesting part of the report is that in which the GWU insists that Dock No.1 - which since the 1997 report has been earmarked for development - should be used again as a repair dock, adding that Dock No.2 and Dock No.3 should not be used any longer for repairs on super yachts because these docks were not "surplus to the ship repairs industry" as the Appledore Report had described them.

Moreover, with regard to Boiler Wharf, which the government wants to turn into a cruise liner terminal, the union said the three docks there should continue to be used for ship repairs.

Meanwhile, in a letter to GWU general secretary Tony Zarb, Transport Minister Austin Gatt said the plan for the shipyards presented to the government by the union was based on an outdated report and that the union's proposals had, in any case, been overtaken by the government's decision to privatise Malta Shipyards.