Contacts over shipyards continue via mediator

Contacts between the government and the General Workers' Union over the privatisation of the shipyards continued yesterday through a mediator, union general secretary Tony Zarb told The Times.

The mediator, whose name has not been divulged, stepped in on Monday to chair a meeting between the two sides.

Contacted yesterday, Mr Zarb said the work of the mediator was "very valid", but no comments were forthcoming from the Finance Ministry as both sides continue to be tight-lipped over the progress of discussions. The two parties are at loggerheads over the shipyards' privatisation process, with the government adamant on downsizing the workforce and the union calling for guaranteed employment for those who do not opt for an early retirement package.

But the government has ruled out this demand, offering instead to "fine-tune" the early retirement schemes in talks with the union.