Wednesday, 6th August 2008 - 11:48CET
Details of dockyard early retirement schemes announced
The Finance Ministry this morning issued four early retirement/resignation schemes for Malta Shipyards workers, just days before it will issue an international call for interest in the privatisation of the shipyard.
Finance Minister Tonio Fenech said the schemes were open to all workers at the dockyard and could potentially cost the government €49 million.
The schemes are an improvement on those issued in 2003.
The main points are:
Scheme A, for workers aged 56 and over will enable such workers to immediately retire on two-thirds pension, while still being able to take on a new job. There will be a tax free lump sum based on every year of service, rising from €60 to €121 per year of service.
Scheme B, for those aged between 50 and 55 will enable such workers to become entitled for a pension on turning 56. They too will get the lump sum payments linked to years of service as in scheme A, capped at €28,000 and lump sum pro-rata ex-gratia payment equivalent to 20 weeks pay for every year remaining to age 56. Social security contributions will be covered by government until retirement or until a new job is found.
Scheme C, for the voluntary resignation of those aged 40 to 49 also includes ex-gratia payment, capped at €45,000.
Scheme D, for all the younger workers includes a lump sum equivalent to eight weeks pay for every year of service up to a maximum of €40,000. In all cases, the minimum payable is €11,650.
Applications for the schemes open tomorrow and workers will be told that they will get what they are entitled to in full if they apply up to the end of September, but the benefits will be reduced to 85% if they apply in October.
Details can be found on skemitarzna.com from tomorrow.
Finance Minister Tonio Fenech in the video clip above, explains why the schemes could not be issued after the buyer of Malta Shipyards is identified.
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Comments
First of all, for your information my father was one of those who under the so-called 'workers regime' , was always denied overtime and was denied promotion no less than four times in favour of younger, less qualified and less experienced political sycophants because he wasn't a party favourite and because he went to church! He even taught some of the people who became his superiors . . . how sad is that?? Secondly, for your information, whilst you were sitting comfortably in front of your PC, I was at work on a building site in the scorching sun wearing (yes) safety equipment and working for my living. Some of us do that you know . . . even after spending almost half our life obtaining good qualifications . . . although I wouldn't expect someone like you to understand! Oh and another thing, my father was trained by the Admiralty and when the 'bad' work practices were introduced by the 'aristocracy of the workers' in later years, he was actually disciplined by the regime for drawing attention to them!!I don't think you are in any position to tell me not to comment my friend!
You are all bickering about productivity and non-productivity of the workers, managerial, labourers etc. The situation the MDD has found itself in today, despite the amount of subsidies it has received over the years, can only point in one direction....... non-productivity of the workers from top to bottom or bottom to top - whichever way you want it. They all only have one thing to say for themselves "Mea Culpa".
Had they been productive the Dockyard would be flourishing today.
Pensions are capped at LM92 weekly for the rest of us maltese citizens.
YOU ARE SO RIGHT...!
And a small advice to the workers there, dont take heed of Tony Zarb, move on with your lives, take a Scheme and go for it, theres a hub of activity going out there for many skilled workers like you! Unfortunatly this is the way life moves on, like yourselves I had to move on to a different job at 48, but ive realised that a new opportunity is a new challenge !
in the second paragraph i meant LOSE not LOOSE..
Now, if that is not the case...as most of the contributors on this blog OBVIOUSLY believe,
A- Did the Prime Minister lie? or
B- Was he ignorant to the situation?
Either/or, his previous statements obviously show a severe lack of proffesionality. The surprising thing is that whilst most of you are so livid at alleged lack of proffesionalism by dock workers, you ALL seem to turn a blind eye to these amateurish(lets leave out malicious for now) statements by our Premier.
As to all you folks blaming the MLP and the GWU....get real. The MLP was the catalyst to attempted refroms. Otherwise, 1987-1996, and 1998 to date..I guess the PN was responsible, so blame them.
As for the GWU, well, very simple really.
After being CHOSEN by the workers to represent them, it is trying to get the best possible deal....If you folks don't think workers should have a union, any union of their choice for that matter, representing them, why don't you just say so...
Accession Treaty 59-Annex XI .en3 page 10 3(a) et. seq.
Quote
3(c) If viability for the shipyards cannot be achieved owing to exceptional circumstances unforeseen at the time the restructuring plan was drawn up, the Commission may review the conditions set out in (b) above in accordance with the procedure provided for in Article 88(1) of the EC Treaty. Before beginning this procedure, the Commission shall take full account of the views of Member States on the existence of exceptional circumstances. These views shall be expressed on the basis of a Commission recommendation and on the basis of available relevant information and circumstances.
This is what the Accession Treaty clearly provides and it is clear that yes, the 2008 deadline is not really a deadline, but the unforseen circumstances that the Shipyard found itself in can be brought forward as exceptional circumstances unforseen at the time the restructuring plan was drawn up.
But the Nationalist Government who has fomented hatred against the Shipyard and its workers for years does not want to save the Shipyard and the work of 1,7000 employees, but to close it to satisfy the European Union and other probable reasons one can think about.
@ing Cassar... I am not doubting the workers themselves since I myself know some people at the Dockyards...and they are all decent folks..
One thing is a definite no no.. and really i think it should not affect the Dockyard only but all public and private sector employees... No job is for life... and you can loose it.. but when you loose it it does not mean that government pays you thousands... Compensation is warranted in case of redundancies however there is compensation and compensation...
A 6 month wage equivalent is acceptable but thousands of Euros is another story..
I reiterate that this should apply to all government employees... particularly one has to be accountable to his work not because one is government employed one can safely remain in his position notwithstanding his work... performance, performance.... government should run its entities and departments like a business and not like a charitable institution...
And I am a public service employee by the way.....
For those who are complaining that the MDD employees will get a early retirement and get some easy money, just to let you know that me myself who used to work at VF ltd also when we get redundant we received the same schemes ( 8 weeks pay for every year) and it was a private company.
Even us the VF employees were told that we will not lose our jobs ( remember Margaret Mercieca on pn stage) and everyone knows how the story ended, like the MDD workers who were told that there will be no downsizing before the last general election and look what they got.
Just to remind that even the MDD employees are taxpayers like everyone else and be sure that this is not a good time for the 1700 workers and their families not knowing what will happen to them. I prefer to keep my job and get no extra money as I think all the MDD employees wish at the moment and remember not all that gliterrs is gold.
Minister said the money will be repaid from the privatisation...so it is not from our pocket..
if the workers remain there, Malta will get less money for the shipyards, so we remain at the same position - or worse- if they dont manage to sell ...
What will happen if the most skilled workers opt for early retirement? Will the workforce be attractive and productive to foreign investors? What will happen if the majority of the workers – not to say all – were to volunteer to retire? Are not the workers being placed in a very difficult position on what to do? Could the schemes be too generous? Where is the balance to make sure that enough workers will be available to continue to work at the shipyards?
I agree with you. It is when reading such blogs that we should realise that everytime Malta gets the governance that it deserves.
Everyone is not taking this against the workers personally. I have no doubt that most of the workers at the shipyards are honest men who just want to earn their daily bread...and yes, I do believe that politics and the media has often played a big part in their situation. However, the GWU has supported this fiasco of a situation too long, and you cannot deny that the financial burden is unfair towards the rest of us who, incidentally, are earning our daily bread as well. I wonder whether you would have been so considerate towards the workers at the shipyards had your father not worked there.
Security at Mater Dei for example..Millions spent on private security contractors whilst the original health security guards guard an abandoned St Lukes.
Perhaps they should be bothered by the influx of new Government employees, right before the last election, when the Government had been telling us for ages that the public sector was overbloated...the list goes on...but that doesn't bother you guys....
Now, as in every blog, I oncre again ask why do you all state that the docks are unproductive, when four months ago, the situation was positive enough for the PM to state that the yards would not be closed down? I don't expect an answer..You guys don't have it..Can't call Gonzi a lier now can you?
As for blaming the MLP and the GWU for the situation..well, thats a joke...Pn have been in almost continuance Governance since 1987....Wake up folks....
Whenever I see these comments against drydocks/malta shipbuilding employees, I really feel hurt. Politics apart, as I support PN, it hurts when people like you point their fingers at the workers rather than at those responsible at bankrupting the company (upper management, bad decisions, politicians, etc). Che colpa ne ha mio padre? He's the best family guy on earth, took care of a middle class family and made sure his two sons grew in an educated environment while he and my mother deprived themselves from luxuries such as cruises, travelling, nice cars, big houses, etc in order to do so.
I don't know, but you make people like my father sound evil rich lazy bummers. You know what, you're all wrong, and honestly you're the 'poveretti' letting the media brainwashing you. What the heck do you know what's going on in reality? :) Be more mature, and maybe people like me will start considering your opinions.
Ing. Joe Cassar
and yet I have to pay more taxes for others.
I also believe that no job is for life... I have been made redundant because the place I used to work for went bust, however the government did not come and give me an early retirement scheme.... I went around and found myself a job...
I just want to remind all that these millions are coming out of our pockets....
This is just the same thing in principle as the strikes of the buses some time ago... it seems that those famous words by George Orwell in Animal Farm apply in this case....
The government has just given Dockyard workers a nice present..let us see how many end up really unemployed ....
Now that would be interesting to see if government just gave away millions to the lucky ones for nothing
why should these workers who have had all the funds all these years be given yet thins final bonus? Did they do any great deed to Malta? apart from ripping its economy??? they do not want the scheme? well i believe neither most of the taxpayers do so liquidate and go!
They couldn't have hoped for better but GWU is not happy enough.
The Drydocks is a nankrupt enterprise and should be treated as such, We have already paid millions over the years in subsiies and now we have to fork ou t retirement schemes.
Is that why the self-employed sector has been badgered to comply with the tax collection excersise over the last five years? to pay out retirement schemes to the same industry which has been fleecing us dry for four decades.
Get serious!!!!
It should be said that this will cost €49 million to us taxpayers not to the finance minister!
Have these people not sucked up enough benefits yet? Why if i become redundant i dont get the same benefits? Is this some sort of discrimination?
But let's be honest, considering the sensitivity of the issue, the position of the GWU and everything, AND also the fact, that if the privatisation fails, we still have to pay the unemployment benefits for redundant workers, I think it's a wise decisions. Schemes sound fair enough.
Is this the way Gonzi solves the problems - instead of putting them under the carpet like his former prime minister Dr Fenech Adami, he simply uses our tax to fund these guys.
Hey Mr Cilia, if the government had to liquidate your place of work you would have been a member of the GWU and it would have told you not to accept the money!!
Do you have a membership with GWU?
can u do proper calculations ? U think a lump sum of lm15000 will be good for a 35 yr old dockyard worker ??
I would accept immediately.... since I would usually be just made redundant and left to fend off for myself...