Updated: Dockyard deal reached, schemes to cost €9m more

(MLP and PN statements added)

The government and the GWU have reached agreement on the privatisation of Malta Shipyards.

Finance Minister Tonio Fenech and GWU general Secretary Tony Zarb in a joint press conference said the early retirement schemes for the dockyard workers had been "refined" to the extent that should all workers take them up, the total cost will rise by €9 million to €58 million. 337 workers have applied so far.

Workers who do not take up the schemes will be taken on by the new employer. But should the employer opt to take on fewer workers than are still on the shipyard books, a government-union commission would be formed to assess their skills and train them as required for the productive sector.

The agreement was reached after talks overseen by mediator Joe Farrugia, director-general of the Malta Employers' Association, who was praised by both sides for the many hours he dedicated to this issue since he offered his services three weeks ago.

Both sides said they were committed to an efficient privatisation process, and the government said it would keep the union fully informed of the process. The two sides agreed to work together so that workers who take up the retirement schemes would be reintegrated in the employment sector as quickly as possible.

The government issued an international call for expressions of interest in Malta Shipyards on August 11. The offer closes on September 15. It also launched the early retirement schemes in an effort to reduce the current workforce of 1,627 shipyard workers to around 700.

Mr Fenech had explained that the workforce needed to be reduced immediately so that the dockyard could be more attractive to potential investors.

Congratulatory statements were issued by the Labour and Nationalist parties.

The Labour Party welcomed the agreement and said it believed it was the best step in the national interest.

It said it had acted responsibly, expressing support with the workers while appealing for discussion and moderation.

Rather than seeking popularity, it worked for a solution to be found. Its appeal had always been for the process to be based on consultations and discussions with the representatives of the workers.

The Nationalist Party said the agreement will lead to a more efficient privatisation in the best interests of the country and the workers.

The country, it said, could not have kept giving the yards subsidies as these were paid for by the people. The country could, with good will, overcome its challenges and the privatisation of the shipyard was an important part of the country’s reform agenda.

It expressed its satisfaction that common sense had finally prevailed.