56 workers remain at shipyards
Call attracts seven more potential bidders
The new shipyards owners will likely have to rebuild the workforce as only 56 of the original 1,800-strong workforce remain on the books as the company goes into the final stages of privatisation.
The time extension for the acceptance of calls for expression of interest in the yards' privatisation, decided by the government following prodding by the European Commission, ended yesterday, attracting another seven bidders.
They join another 43 prospective investors who declared their interest in the first phase of the process.
The call had originally closed on September 15 but there was disagreement over the process between the Commission and the Finance Ministry, particularly over Malta's insistence to offer the shipyards' exclusively for the maritime industry. Late in October, a second compromise call was issued which retained that proviso but widened the offer to include all maritime sectors and not just ship repair and shipbuilding.
By the closing date yesterday morning, another seven bids had been filed. As it did with the first 43 bidders, the Finance Ministry would not give any details of the companies, saying only that more information will be given after the tendering process.
The government is likely to be in a better bargaining position as a result of the small workforce.
About 1,500 workmen had applied for the early retirement schemes before the end of September deadline, leaving little over 140 workers. However, employees aged over 56 years kept on filing their applications after that date. While workers were allowed to take the opt-outs after September, the schemes were purposely made far less attractive in order to secure early commitment on the part of the workers. The schemes for the 56-year-olds were not bound by this deadline.
After the government resolved a dispute with the General Workers' Union over yards' privatisation, the number of workers taking the opt-outs immediately increased.
They seem to have risen substantially when European Commissioner Neelie Kroes said last September that the government's intention to write off about €100 million in debts before selling Malta Shipyards could violate EU rules. The statement cast doubts over the privatisation and there was a rush on the schemes.