Government forges ahead on shipyards

The government will today announce four "final" voluntary retirement schemes for shipyard employees after an unscheduled meeting requested by the General Workers' Union failed to yield an agreement, Finance Minister Tonio Fenech said yesterday.

He insisted that the government was "committed to privatisation" adding that Malta Shipyards workers ought to be made aware that, should the process fail, the company would have to be declared bankrupt and they would lose their job. And those who did not take up the early retirement schemes would end up empty handed.

Giving a hint of the schemes, which will be open to all the workers, Mr Fenech said they are modelled on the schemes that were offered to workers in 2003 (when the shipyards were restructured) with adjustments to reflect today's realities.

After the two-hour meeting, GWU secretary general Tony Zarb said the union did not agree with the schemes' financial aspect or the fact that they would be issued today.

Mr Fenech and Mr Zarb both confirmed that the two bones of contention were the union's demand that employment should be guaranteed to those who do not take up the scheme, and its insistence that the schemes be issued only once the prospective buyer is known.

Mr Fenech said the government had no choice but to abide by the procedure and announce the schemes to ensure the success of the privatisation process. The government could only guarantee employment if the process went through and for this to happen the current 1,700 employees had to be reduced to about 700.

"If the number of workers remains large and the privatisation falls through, the consequences are clear. On January 1, the shipyards will close down," he said. Mr Fenech explained that yesterday's unplanned meeting was held after he received a letter from Mr Zarb requesting the immediate resumption of discussions. During the meeting the union stuck to its demand for guaranteed employment, but the government was not in a position to give this type of guarantee. It could only guarantee a future to shipyards' workers if the privatisation process succeeds, he said.

He clarified that, contrary to the impression given to shipyards' workers, it was wrong to believe that, if privatisation fell through, the workers would retain their jobs.

If the process failed the reality was that Malta Shipyards would go bankrupt because, as from December 31, the government could no longer offer subsidies or guarantees.

"If the privatisation process fails, no one will get anything," he said, adding, however, that those who accepted the schemes would not be affected in such scenario.

He stressed that the government did want the situation to get to that point and had no choice but to issue the schemes today as this had to happen before the calls for expressions of interest are issued next Monday.

He added that these schemes were final as there was no time to issue others.

While the government was willing to carry on discussing the privatisation process with the GWU, it could not keep waiting for the union to come up with its reaction to the schemes.

"We've been in discussions for almost a month and the GWU had ample time to give us their reactions regarding the schemes and their expectations.

"Unfortunately, they did not. This is a disservice to the workers themselves," Mr Fenech said. Mr Zarb said that yesterday's discussions clearly showed that the government would not be keeping its pre-electoral promise and guarantee shipyard workers' employment.

He said the union yesterday presented the government with "practical solutions" and asked it to reflect on them.

The union, he added, was open to further talks with the government.