BOV worker-director to go - GWU

I happen to read annual reports inclusive of the BOV. The Chief Executive is not a Board member i.e. not a Director.

Lets not mix up things please. The BOV Employee Foundation which has BOV
shares in its portfolio, on an annual basis proposes a contender to
participate in the election of directors at the Annual General Meeting.
Therefore such contender on behalf of the BOV Employee Foundation, who need not be an employee of BOV, can/cannot be elected by the
shareholders at the AGM.

My other comment regards human instinct aspect that has been
mentioned. One has to take into consideration the professionalism of
existing worker representatives which has evolved over time.

And the present situation is that Government is already appointing a
financial expert who is the Chairman of the bank since Government has 2
directors on the Board of BOV – the Chairman and the Worker Director.

If such a concept has been working, test of which has been
during these last months during such a financial crisis, leave it as is.
If workers are not represented this may have an effect on their motivation
and as a customer I certainly prefer to bank with motivated people.

@Jeff Iguanez

One should distinguish between management level and board level. Of course you are correct in saying that workers are already represented by their unions, but this representation is with Management only.

It is the worker representative at board level that ensures that the Board, which is majorly composed of external directors, is being presented with true and factual management reports. Do you think that external directors that have their own businesses have more insight than the worker representative? I do not think so.

Moreover this is just one of the many responsibilities of the worker representative as director in the supervisory capacity.

Regarding BOV workers holding BOV shares who may elect a director at the AGM which is a totally different concept I suggest that your refer to the Malta Today article - Sunday 9th November - which is self explanatory.

Worker/directors are just an anachronism.

Directors represent shareholders and no one else. Workers are already represented by unions who make representations with management.

Of course, many BoV workers have bought shares in BoV and are thus represented properly anyway by the directors they elect.

Those who are represented at board level should be those who stumped up the capital - ie shareholders - who also bear all the risks if a company fails.

Jeff Inguanez

First of all such a concept is effective and of benefit to all stakeholders i.e. internal and external shareholders, staff and customers.

Reference to European Union studies should be made. Locally the concept of worker director has been gradually reducing due to the privatisation of national organisations. Does this decision mean that BOV is going to follow suit the process of Mid Med Bank now HSBC?

Whatever is boiling on the back burner it is in the moral interest of society to leave such worker representation at Bank of Valletta.What are the views of the existing Board members?

I encourage employees within BOV and minority interest shareholders to speak out.

If you have fully functional unions which do their job as its supposed to be done, then I would agree that the worker director post is not needed any more. However considering this factor and the mindeset diffrerence that exists between boardroom and public frontline offices, then a representation would do no harm at all. So yes, I believe that there is still the necessity (and not comfort) of having a representation in the boardroom!

Who said that it is the right thing to have a director/worker?

Come on guys I am really surprised that you are against this decision too.

Let me give you just one scenario.

The bank needs to take an important decision. Let's say, reduce jobs, or perhaps hours, or something else due to the international financial crisis. The alternative to that, would be thousands of Maltese depositors losing out on their investment.

What would the worker director vote? Definitely to safeguard his job not the interests of thousands of Maltese. I cant blame him - that would be natural human instinct.

I have no political interest in this case. I am a small investor, with a little amount of money in BOV. If there is a decision to be taken, I would rather have that decision being taken by a Government appointed financial expert rather than by a worker director.

I am not sure that many people are aware that the BOV have another two employees representing them on the Board. There is the Chief Executive and then the employees (through the shares of the BOV Employee Foundation) elect another director from amongst themselves to represent them on the Board. Do they really need a third one??

Two wrongs don't make a right. As a worker I don't expect to have a right for directorship. Directors are there to take decisions which are primarily in the interest of the owners who are risking their money in the company.

Such a concept has been working effectively within BOV. Employees always stand to gain in having a representative that voices out the real situation within the company, especially when Management reports are presented on all facets of the organisation. The add ons plus insights to such reports are of benefit to the internal shareholders and external shareholders. After all what is the best resource that the bank has - its Employees.

So do two wrongs make a right John Schembri?

What's all this fuss about? Dr Alfred Sant on the feast of St Paul some 10 years ago made a clean sweep of this system at the Drydocks to the surprise of comrade Sammy Meilaq who was its last chairman.
Company directors are elected by owners and/or shareholders.

@ J.Farrugia
Have you ever heard the story back from the world war 2 era whcih ended .........
AND THEN THEY CAME TO REMOVE US. BUT THERE WAS NOBODY LEFT TO HELP US.

c.camilleri,
Are you saying that Mintoff was the Chancellor of Germany where the worker director and other representatives of the workers at company management are the norm?

J Farrugia
Was West Germany, now Germany, ever communist??

@JFarrugia:
In communist countries, which did not actually practice true communism anyway, one major issue was evident, the state taking control of everything, and doing everything possible so as not to have to share ANY decision making.
Now, if you look at what the social partners are saying, that is rather similar to the situation right now is it not?

Now, as for all you people complaining and talking through blue tinted glasses, if a worker director is so problematic, why has BOV done so well in spite of the banking disasters everywere? He can't have been doing THAT bad!

Ok Ok, so professional management does get results...LIke the Dockyards for instance....They've done really well since appointing foreign management havn't they?

It is about time for the workers to wake up and realise that they are losing much of what they have come by through hard work every day!

As a former Bank employee for some time I must say I am surprised GOvernment went all the way with removing worker director post! This is a real shame for workers who lose their voice. Also shame on MUBE for not saying anything on the subject. I expect MUBE to be side by side with GWU and workers.

It's a shame that the government wants to remove the worker director from BOV too. I think that the workers need to have someone to represent them on the highest level, to voice their thoughts. What is the real reason behind all this? Why is the government trying to silence the workers?

What is the purpose of having a worker director? This is just a remnant of the Mintoff's era were everything was control by the state or companion in arms the GWU. It should have been removed long ago.

@ J Farrugia
You should have said that the govt is beginingto act like the comunists since he wants to have absolute control on workers. Ask what happened to other companies where the worker-director was removed.
What will happen next? Workers beware!

remove these comunist era remains. Worker directors never served any purpose except for the unions. They give no useful service to their collegues. Remove the remnants of such a commy system.

Such a disgrace! Govt is doing its utmost to retain an absolute control on workers! What benefits to we get if a worker-director is done away with? I find none!