Thursday, 7th August 2008
Yards schemes may cost €49m
The Malta Shipyards' privatisation process was set in motion yesterday when the government unveiled the early retirement and voluntary resignation schemes.
Shipyard workers on an indefinite contract - amounting to 1,627 - are eligible to take up one of the four schemes that will be open until the end of October, Finance Minister Tonio Fenech said yesterday.
Should all the workers apply, the schemes would cost the government €49 million, which would "hopefully" be financed by the privatisation itself.
Scheme payments will be made within 10 working days of application, but only those who apply by the end of September will get the full entitlement. Workers applying in October will get only 85 per cent of the sum due.
This is being used as an incentive for workers to take up the schemes in order to reduce the workforce to less than 700 and make it more attractive to prospective buyers once the call for expressions of interest is issued on Monday, the minister said.
The schemes are voluntary: any worker who wants to stay on can opt to do so. But Mr Fenech reiterated that the government could not guarantee their employment if the privatisation process falls through.
The schemes, divided into four age brackets, are modelled on those issued in 2003 - when the shipyards were restructured - but adjustments were made to reflect current realities, he said.
Scheme A offers early retirement to workers over 56, while Schemes B, C and D are voluntary resignation schemes for those aged between 50 and 55, 40 and 49, and under 40 respectively.
Schemes C and D target the majority of workers and would cost the government the biggest chunk of the expense, especially since the workers in these age brackets have the most to lose because they would be giving up their jobs.
Outlining the difference between the 2003 and 2008 schemes, Mr Fenech noted that they were now open to all the workers, unlike in 2003 when the people eligible for the schemes were hand-picked.
Moreover, according to the schemes, payment of pending leave entitlement and pro rata statutory bonuses will be included with the last salary; employees with a medical condition will participate in the schemes; all the workers can continue working without losing any scheme benefits; and they will be able to register for work even though this was not usually allowed in cases of voluntary resignation.
Mr Fenech said he was aware that, following the shipyards' hefty financial losses that were absorbed by taxpayers, some may perceive the schemes as too generous.
He explained that a middle ground had to be found and the principle of equity (compared to 2003 schemes) respected.
The launch of the schemes comes after a series of meetings between the government and the General Workers' Union (GWU) which failed to yield an agreement, the last meeting having been held on Tuesday at the request of the latter.
The union has agreed to privatisation and early retirement schemes but insists that the government offer guaranteed employment to workers who want to retain their jobs and that the schemes be launched once the prospective buyer or buyers are known.
The government, on its part, has underlined its commitment to ensuring the success of the privatisation process especially because it will no longer be able to subsidise the shipyards beyond December 31.
The failure of the process may lead to the shipyards going bankrupt and workers losing their jobs without any form of benefits, Mr Fenech reiterated yesterday as he launched the schemes.
The GWU will be holding a meeting for shipyards' workers and their families on Wednesday in Paola, the union said. During a meeting held on Monday the union urged workers not to accept the schemes.
Alternattiva Demokratika expressed solidarity with the workers "who are feeling uncertainty as regards their future".
It urged the government and the GWU to work hand in hand to create proactive solutions to ensure that the workers remain in employment.
In the coming days each shipyard worker will be receiving a personalised letter informing him about the schemes.
Applicants can call on freephone 156 or seek assistance at two help desks - one at the Catholic Institute in Floriana and the other at Mimcol offices in San Ġwann. They will be open from today between 8.30 a.m. and 6 p.m. Monday to Friday and until midday on Saturday. The help desk will be manned by ETC and Social Security officers.
Applications can also be sent by mail or through the internet by visiting www.skemitarzna.com or dropping an e-mail to info@skemitarzna.com.
The schemes on offer
Scheme A: Early retirement scheme for workers aged 56 and over
• An immediate two-thirds pension.
• Ex gratia (non-taxable) lump sum linked to years in service with a minimum qualifying service of 10 years: €60.65 for every year of service for those working up to 19 years; €90.85 for every year of service up to 29 years; €121.13 for every year of service over 30 years.
• Freedom to find alternative employment and still receive a pension.
• National insurance contributions financed by the government unless the employee finds alternative employment.
• Entitlement to cost-of-living increases.
• Social security covered until retirement or until alternative employment is found.
Scheme B: Voluntary resignation scheme for workers aged 50 to 55
• Entitlement to a two-thirds pension on reaching 56 years of age, with the same conditions as Scheme A.
• Ex gratia lump sum linked to years in service with minimum qualifying service of 10 years: €60.65 for every year of service up to 19 years; €90.85 for every year of service up to 29 years; €121.13 for every year of service over 30 years.
• Lump sum pro rata ex gratia payment equivalent to 20 weeks' pay for every year remaining to age 56.
• Capped at a maximum of €28,000.
• Social security contributions covered until retirement age is reached or alternative employment found.
Scheme C: Voluntary resignation scheme for workers aged 40 to 49
• Lump sum ex gratia payment of 3.25 times the annual basic salary.
• Capped at €45,000.
Scheme D: Voluntary resignation scheme for workers under 40
• Lump sum pro rata ex gratia payment of eight weeks' pay for every year in service, capped at €40,000.
• Minimum sum payable is €11,650.
RSS
Comments
the fuss about early retirement is due to the fact that it will be paid by the tax payers
I was redunant too and never offered any retirement scheme infact I had to stand on my feet without any help either from the government or GWU and to remind you also at that time it was the MLP governemnt and the answer we got from the Union was ' there is nothing we can do' .
@@@ Mathew Sciberras:-
Well done for your last sentence 'one should consider his comments
before commenting'. And that's what you should have done. The
down trend for the ex-MDD began when the first council was formed
by members who were not qualified. These members where 'il-hbieb
tal-hbieb'. This continued for several years until the government
decided to take over. But it was very late. The Drydocks was up to
its chin BANKRUPT and you know by whom by those workers who
where not qualified. So think twice before you write, my friend. I will
tell you more later.
administration since 1998, so if some one is to be blamed for the pityfull situation that the yards are in , the goverments are to be blamed. The workers are just targets for most political persons to blame so as to be able to cover up the incompetance of policy making peopel apointed directly by Goverments.
One must not forget that the 900 workers layed off were all picked by the top managment representing directly the goverment as all were directly appointed by the goverment. The rest could not benefit from the schemes than. Now these workers are being forced to choose with out even being given the same conditins of the 900 group, Can this be considerd just .
It is very easy to comment against yard workers now that the popolation has been negatively brain washd against them for over fifteen years. One should consider his coments before commenting.
@@@ John B. Vincenti:-
I know you and much more your brother. Everyone has suffered
at the ex-MDD/Shipyards because of the egoism of these
bunch of workers. I have suffered during the 2003 redundancies
like you and all the other workers are suffering. Dear John, I am
not trying to justify nothing because you are suffering like I
have suffered. I am trying to show to the people outside that
although they are thinking that this is the right thing of privatisation,
no one knows how this azienda arrived to this point of
privatisation. John, we know all what happened during the past
years. Let's not forget when some years ago the GWU used the
workers to block roads. Let's not mention other facts. The same
people speaking on behalf of the workers today where there.
So, please, you people out there if you never worked at the ex-MDD
say nothing about the workers, because 'il-hnizrijiet li saru gewwa
t-tarzna hadd ma jaf bihom hlief il-haddiema'.
Let's stop there for to-day.
Strange isn't it. I guess i'll have to keep on bringing it up EVERY time!*tired sigh*
here goes....
a) did Gonzi LIE to these workers? or
b) was he unaware of what now seems to be an obvious situation?
hello hello...is there anybody in there?(sounds of Pink Floyd)
I like the rest of the workforce got a personal letter just before the last General Elections at home from Mr Gonzi (aka Primeminister). Here he told us to rest assured that our jobs will be guaranteed.
I was brought up with the impression that a Gentleman's word was binding, let alone a letter.
This government scraped through and got elected on such false promises. It is such charlatans who lose all credibility when they are caught out and all respect for them is lost. Here we are not playing chess, but ruining people's lives.
Depsite their so-called Christian upbring in Malta, they are hell bent on seeing their fellow Maltese workers get the worst. Are recollections of past incidents and mistakes expited by others (who are no longer with us) to be our legacy . Dear Mr Costigan, I was there when the violent incidents occurred. I am no labourite and because of that, I suffered my fair share. However, that will never justify how things are being are being executed now. Just because one cannot drink, is one to poison the water so others cannot either?
Yes, as my Father has told me on many occassions, there are no Christians in Malta, only Maltese Catholics like you.
Talkin of...... what happened to the Church on this one? They are conspicuous by their silence.
Where are the Champions of the Workers..... the Labour Party, good to know that they agree in principle at least.(end of story) This whole charade is a tragic comedy, where us Shipyard workers are the Clowns. Forgive them Lord, for they do not know what they do.
To use your own words.... I do have a family of four all dependent on my earnings and all the bills to pay, including the Surcharge..... the only difference is that if my company goes bankrupt and i end up redundant, i might be lucky if i get the money for my notice period let alone an ex gratia sum of money or two thirds pension.
MDD workers should be no different in my opinion.
To Messrs Sammy Meilaq, Pawlu Bugeja and all the others.
Before criticising the government for privatisation of the
Malta Shipyards look back to those old days of the late
70's, 80's, 90's and the new millenium and see how you
and some of the workers used to handle the ex-MDD. Do
remember the managements ( except those who tried to
do some good things), the promotions (lil-hbieb tal-hbieb),
the IMNARJA event (where workers were beaten by other
workers), ships leaving the 'yard late on date because there
is no overtime on that particular ship, overtime triple more than
it is supposed, and the story goes on and on and on. It is impossible
to say everything on this blog BUT I finish here with a Maltese saying
Biex tiskongra trid tkun pur.
The truth about the ex-MDD/MaltaShipyards can only be said if you
ask the surrounding walls and those inside.
EX-MDD PN WORKER
I am in the same boat as you, facing the same schemes. You have not understood my pun here.
It is the Politicians, with the stroke of their Pens, that have decide our future. The dice was loaded from the start.
Hand on your heart, please