Nestor Laiviera
Government 'cautiously optimistic'
The government is "cautiously optimistic" about reaching an agreement with the General Workers' Union over the shipyards' privatisation, a spokesman for the Finance Ministry said yesterday. The statement, which comes in the wake of a similarly optimistic outlook by the union's general secretary Tony Zarb, marks a new development in the privatisation process.
In an interview with The Sunday Times, Mr Zarb said that "the mediator got the two sides closer to each other", adding that "before we know it we could strike a deal".
Talks between the government and the union on the fate of the workers stalled last month when the GWU felt the need to call a meeting for 'yard workers in Paola, where Mr Zarb and union section secretary Sammy Meilaq warned the government not to forge ahead without the union.
After that, a mediator stepped in and things started moving along.
The main bones of contention are the GWU's demand for retirement schemes to be delayed until the government has a buyer for the 'yards and the demand for workers who do not opt for the schemes to be given a guarantee of employment.
The government has been arguing that with the present workforce there will be no takers for the shipyards, which is why it has been emphasising the need to reduce the workforce before the sale.
So far about 300 of the 1,000 workers by which the government is planning to downsize the 1,700-strong workforce have applied for the voluntary retirement schemes, which end next month. The Finance Ministry said it was encouraged by the numbers so far, pointing out that there was still time to go.
According to the latest ministry figures, most applications fall under scheme D (for workers aged below 40).
There were 89 of these, followed by 87 for scheme C (workers aged 40 to 49), 73 for scheme A (workers over 56 years) and, lastly, 25 applications for scheme B (workers aged between 50 and 55).
The yards' privatisation is a last-ditch attempt at resolving a thorny national issue which has been hanging around the neck of successive administrations for decades.
According to Malta's EU accession agreement, the government will not be allowed to subsidise the shipyards from next January.
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Bundy does not know whether to...
This WAS the night - Kurt makes it...
Updated - Jason Micallef demands...
Petrol price up 6c
'No need for early election if PM's...
In Discussion
3 Comments
Post comment
Please sign in or create your Account to post comments.
L Galea
Sep 3rd 2008, 17:39
Because that was what had been agreed to during the accession discussions with the EU and because it is written down in the Accession Treaty.
Therefore the Government did not keep its word, neither with the Shipyard workers nor with the Maltese people.
If it did and the necessary investment had been carried our, then it might have been another story.
This is apart from what happened in the Fairmount contract which shows gross incompetence by the person engaged and entrusted by the Government to negotiate the contract.
Therefore the Government must shoulder the responsibility for engaging person on the principle of culpa in eligendo, a principle that has been upheld many times in our own Courts.
It appears that there are some who do not want the Shipyard to be financially viable and remain Maltese property and the Shipyard workers to continue to earn their living, because it seems that they may happen to have an interest in getting some part of the Shipyard if it is closed down?
Antoine Vella
Sep 3rd 2008, 16:33
@ L.Galea
Why should we "grant" them even more money than we have done already?
L Galea
Sep 3rd 2008, 10:37
But, quote from file 59Annex XI.en3 Accession Treaty p10 et seq (10-15)
3. Treaty establishing the European Community, Title VI, Chapter 1, Rules on Competition.
(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.
The overall aid amount referred to in (a) above shall not be exceeded under any circumstances.
So there is no excuse for the Government not to discuss with the European Commission measures to save the Shipyard since the present circumstances were clearly not foreseen when the restructuring plan was drawn up.
Furthermore, not all the money that could be granted according to the agreement had been granted, so the Shipyard may still be saved.