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Shipyards' privatisation

GWU tells workers not to enter in any agreement with government

Shipyards' workers listen attentively to GWU secretary general Tony Zarb during yesterday's meeting on the shipyards privatisation. Photo: Jason Borg.

Malta Shipyards workers will not subscribe to the government's proposed early retirement schemes unless those who choose to retain their job are guaranteed employment, the secretary general of the General Workers' Union, Tony Zarb, said yesterday.

Highlighting points of a resolution approved unanimously by GWU shipyards' delegates, Mr Zarb stressed that the union was not against the privatisation of the shipyards or early retirement schemes. However, it would not accept the government's imposing attitude and insisted that an agreement would only be reached through "serious consultation".

The Ministry of Finance, Economy and Investment described the resolution as "premature" adding that it endangered privatisation and showed that the union was not understanding the risks associated with the failure of the privatisation process.

Referring to guaranteed employment, the government said the people could not be asked to keep bearing the shipyards' financial burden. The government was not in a position to guarantee employment if privatisation did not go through, the ministry said.

Earlier this week, Finance Minister Tonio Fenech presented the GWU, who represented the shipyards workers, with details on proposed early retirement schemes. The union must make its counter proposals by today.

The resolution adopted by the shipyards' delegates says that any early retirement schemes agreed upon ought to be introduced once it was established who would be running the shipyards and when plans for the future were clear.

The resolution also called for guaranteed employment adding that, whenever there was a transfer of business (even when the government was involved) workers should be informed as to who they will be working for.

Mr Zarb told shipyard workers that the government had till today to think about the resolution.

"The government's plan is clear. It wants to divide you so that it will be stronger. But this plan won't succeed," he said as he called for workers to remain united.

As per their resolution, he directed workers not to reach any agreements with the government and to take any documents or forms they received at home to the union's offices. This would ensure the union had a strong position to negotiate from for the benefit of the workers themselves, he said.

Mr Zarb said the government was breaking its pre-election promise because Prime Minister Lawrence Gonzi had said he had no plans to downsize the shipyards. Now the government was imposing the downsizing without any consultation.

"The union's position is clear. We want serious discussions aimed at reaching an agreement. We will not accept imposition... We are not saying we are against privatisation or early retirement schemes but, if they happen, they must be in the best interest of the worker... The schemes will not be approved before the government guarantees employment as it had done in other cases of privatisation," he said.

secretary of the GWU's shipyards' metal and construction section, Paul Bugeja, said it was "strange and inhumane" that the hard work of shipyards workers, who contributed to the economy, was treated so badly by the government. The government should be providing incentives for them to keep operating and not lay obstacles and demonstrate "hatred".

The current situation at the shipyards was "a national scandal brought about with the government's blessing". He said that the "extra" employees at the shipyard were the foreigners (not the Maltese workers), adding that the chairman ought to be held accountable.

He said the government was going about privatisation the wrong way starting with reducing the number of employees before knowing who was even interested in taking on the operation.

The ministry said it was irresponsible for the union to discuss the schemes when they were still in the process of consultation.

The ministry noted that such schemes were a financial burden and it reminded the union that the government could not go on subsidising the shipyards after December. This meant that if the privatisation did not go through, the workers would not only lose their jobs but also the opportunity to benefit from the schemes.

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Comments

Charles Camilleri (on 1/8/08)
The yard workers must understand that the time of their dominance in the island economy has come to an end. The time of the yard bleeding the taxpayers with one round of subsidies after an other is no longer tolerable. Fortunately they are a privileged class as they are treated differently from other workers who have given efficient service in the private sector. The taxpayers have given the yards more than E950 million without any sign of improvement. It would be foolish for any Govt to continue squandering our money without any light in the tunnel. The time is up and the workers have a few option to chose from. We hope they chose the right ones.
joe borg (on 1/8/08)
I think that the GWU and its members did not learn the lesson from the Sea Malta case. So once again dear GWU. Please leave the workers alone and let them choose. nd please dear Prime Minister and Ministers they should take it or leave. In case send them home with nothing. Malta is fed up pumping money into a white elephant.
J Martinelli (on 1/8/08)
What the GWU is afraid of is that its members, under private ownership, will, for the first time in their lives, be accountable for the quality and quantity of work done on a daily basis.

New owners will not tolerate the arrogance of the workers, totally brain washed by their union and who choose to work when they please, if they please.

What astounds me is that the GWU, in this instance, is going against what their favourite party (the MLP) have been recommending to the Nationalist government - that it practices 'meritocracy' in negotiating with civil servants.

I wonder how many of the 1700 would be retained by any prospective employer if their continued employment depended purely on a merit basis. Why would these workers be treated any differently, though they have already been offered an early retirement scheme which, seems like preferential treatment, anyway?

The sole aim of the GWU, as before, is to create a crisis. In this regard it has the most outstanding expertise.

Toni, wake up from your dream. It so happens that it is not your buddies who have been chosen to govern.

Shipyard workers, wake up and smell the coffee.
J Micallef (on 1/8/08)
Is this so called union a joke. The workers are in for a ride, all in the blessed interest of the MLP.

On one hand they pay lip service to privatization. On the other hand thay try to put spooks in the wheel. They do not care about the workers as long as they jeopardize the privatisation process, or so they think.

Expect an MLP press release,demanding the same - that the buyer be known before hand. Are they real? Which investor will take over 1,700 workers with such low productivity, and in such a cyclical industry. And why is the government treating the shipyard workers with gloves, and giving them all this money, whereas people who do the real work in the PRODUCTIVE private sector do not have this luxury? Aren't EUR 1 billion enough of a drain? It is very dissapointing to see that the goverment is forking out million of Euros from our taxes again, to hand them out to trouble makers?

With all the creative slognas that they are able to come up with, the MLP and the GWU can't come out with a single realistic policy which is relavant to economic reality around us.
John B.Vincenti (on 1/8/08)
Gentlemen,
Please remember that we are dealing with people's lively hoods including their families and not just numbers and figures. The majoirty of these workers a decent and hard working folks, who pay their dues (PAYE) as does the rest of Maltese society.
Yes, even in our losses, we contributed by injecting foreign currency into Maltese economy.
The workers have been recently blamed for the dramatic losses following the "Conversion Projects". It has been convenient to forget that a large amount of the "Workers" on these projects consisted by -and-large on foreign sub-contractors ( from Fitters, Welders, Electricians to Out-fitters).

When way back in 2006/7 we were seeing a positive trend in our Balance of payments (yes we were very aware of Dec 2008 being around the corner), along comes a Contract Executive (with who's blessing, only God knows ) and does the Devil's work. On our behalf, he agrees on two contracts (with heavy penalties) that anyone with a basic knowledge of our work, knows are impossible to meet.

We were doomed to fail, for we were Politically designed to fail. The Govt has lost it's moral ground on this one. Ex PN supporter, ex MSL Worker
simon wilson (on 1/8/08)
First; a comment on the statement by Paul Bugeja, that is was "strange and inhumane" that the hard work of shipyards workers, who contributed to the economy were being treated badly", Is it not a fact that it is the hard working people of Malta who have been treated badly, by being forced to contribute to the wages of the dockyard workers for many many years, and getting nothing in return. Thank goodness this is now going to end.
The fact is, shipyards in the Far East & Middle East have the lion’s share of the world market, due to 1) value for money workforce, and, 2) lack of restrictive practices, (welcome to the real world). If this does not happen in Malta, by the introduction of a more efficient workforce, (where ever that may come from), and a loosening of union influence, then the shipyard will not be bought by anyone , and its future will be as a marina or a site for some nice holiday homes.
Over time, things in this world have to change and adapt; those that cannot evolve become extinct. The age of the Malta Shipyard dinosaur seems to be coming to an end.
Joseph E Briffa (on 1/8/08)
Since when is the GWU so concerned about the welfare of the drydocks' workers? For decades the GWU put their partisan interests before those of the drydocks workers who, in the old days, formed the power base of the Labour party. Is it again a case where the GWU wants to put the government in bad light? Is it trying to put spokes in the wheel of the retirement scheme being offered by the government so that these people will find themselves without a job and without financial compensation come January, so there will be an extra 1 600 on the dole? Is this the way to help the workers and the Maltese economy? Doesn't the GWU know that by downsizing the workforce the drydocks sale would be a more attractive proposition? Toni Zarb is no bright spark but he is no fool either.He knows the government is on the right track but he can't bring himself to face another government success, so he keeps shifting the goal posts. Doesn't he remember the SeaMalta case and Anglu Fenech's handling of the Phoenicia case? So Toni stop interfering; the Maltese don't want to keep pumping more millions in this lame duck.
T. Mallia (on 1/8/08)
Some words of advice to the shipyard workers:
Do you all really think that the union is doing this in your best interest? Do you think that the union would have taken the same position if it was under a different government? It is again as usual evident that the union shall be against anything that the government proposes for the simple reason that they want to hinder the governments work to make this countries economy stronger. Did we all forget the Sea Malta issue. The union had taken the same position, and all the workers ended up unemployed. Think well, and consider all your options, and dont let any polically biased institutions decide for you. At the end of the day, if you end unemployed no union is goling to feed your families. You can strike, but for how long, a week... maybe two... they will pass and you will still be at the starting point. Accept the reality behind all this issue. The country cannot keep paying for the shipyards, and if they are not privatised, they will eventually be closed. No company shall take over the shipyards with the ammount of workers it has!... Would you??!!
L Vella (on 1/8/08)
GWU's Death Wish 3,4,5, I lost count, the only consolation is that the taxpayer will be saving some money following this decision. I feel sorry for the workers who will not be given the chance to save their employment. Will Mr. Paul Bugeja please give us a breakdown or at least a plausible explanation of the yard's contribution to the Maltese economy. Why should we still be listening to words like 'hatred' in supposedly serious discussions ?
Jean Pierre Aquilina (on 1/8/08)
'... Paul Bugeja, said it was "strange and inhumane" that the hard work of shipyards workers, who contributed to the economy, ...'

This statement is at odds with the financial deficit of the shipyards, which deficit is financed by people's taxes.
mark Bonnici (on 1/8/08)
quote fomr thetimes

"Los Angeles Times reports Governor Arnold Schwarzenegger of California has moved to end a budget crisis by sacking 22,000 state workers and ordering pay cuts for 200,000."
Alex Mangion (on 1/8/08)
It's a shame that the GWU has not learned from its past mistakes in the SeaMalta case. Its clear that the Shipyards will be either closed or privatised with consultation or else closed down and a new private company enters into an agreement with the government for the use of the premises and land currenty under the shipyard management. Its a pity that shipyard workers are led by such bad managed union. This is a repetition of the SeaMalta scenario. After completing a new mess with the Shipyards, can you kindly resign Mr Zarb? The union needs a proper leader and not puppets!!

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