GWU insists Malta Shipyards must focus on ship repair

The GWU in its report on the future of Malta Shipyards, published today, has insisted that ship repair should again be considered as the core business of the dockyard.

The report was published on the union’s website after it was rejected by the government, which noted it was based on the 10-year-old Appledore report and had been overtaken by events, notably the decision that the shipyard should be privatised.

The report repeatedly criticises the Malta Shipyards executive management for the way it is running the dockyard and also points out major mistaken decisions which it says have been detrimental to the dockyard.

Among them, it says, was the Fairmount conversion contract which will cost Malta Shipyards losses of €47 million over a two-year-period.

Another mistaken decision was for ship repair not to continue to be considered as a core activity (preference being given to ship conversion work). The union said its estimates showed that ship repair would yield a recovery of 200 percent on direct labour.

Also mistaken was the way the dockyard is allocating sub-contracting work based on time rates rather than a lump sum. As a result, it is more worth it for sub-contractors to be inefficient.

Going into various sections of the Appledore report, the GWU said production levels can be raised if there is higher labour and capital utilisation through an increase in turnover; if the concept of variable remuneration is retained, where possible; and if more investment is made so that work can be less labour intensive.

The union said the number of managers as a proportion of the total workforce is too high and needs to be reduced through natural wastage and a proper succession plan.

When it discusses structures of business, the GWU says Malta Shipyards should again actively seek ship repair work and not simply accept some requests by shipowners and, as proposed by the Appledore report, ship repair should again be a core business so that the best use can be made of available capital and labour.

The union says it agreed the the Appledore report proposals for the shipyard to diversify its activities.

It however, disagreed that the dockyard had given up No 1 dock and its facilities in Dockyard Creek . It also disagreed with the Apledore report that No 2 and No 3 docks are surplus for ship repair jobs, and it made no sense for the dockyard to reduce its productive capacity. It agreed that No 3 dock should be used for yacht repairs but No 2 dock should be used for both yachts and Panamax market repairs.

The union also insists that the shipyard should retain Boiler Wharf since that complements the facilities of Docks 4, 5 and 6. Should cruise liners start using this wharf, it will also affect blasting and other works carried out in other parts of the dockyard, the unon says .

Among other conclusions, the union says the mismanagement Malta Shipyards had suffered has not instilled confidence, motivation and accountability among the workers. The union is confident,, however, that with proper all round cooperation there os a future for this enterprise for as long as there is proper communication and confidence between the workers, the executive manageers and all stakeholders.