Saturday, 8th November 2008
Unions object to removal of BOV worker-director
Two unions yesterday criticised the government's decision to remove the board director appointed by Bank of Valletta workers as from next year.
The General Workers' Union (GWU) and the Professional and Services Employees Union said the system had always proven to be a successful one and had consistently delivered good results.
Every year, BOV workers appointed a director to represent them at board level to ensure they had a say in the implementation of any proposed policies or amendments.
The GWU said it was informed of the government's decision by sources close to the bank. Moreover, it was never directly informed or consulted by the government, which was BOV's largest stakeholder.
Both unions said this was an unwise decision to take in light of the present global financial crisis and instability in the sector.
When contacted, a spokesman for the Finance Ministry said the government had long been feeling the need to increase its representation on the board. This, he added, was accentuated by the international financial situation. Moreover, the spokesman said, there was still one workers' representative on the board.
This was disputed by the GWU, which said the second worker had been elected on the board in an election and this post was not automatic.
RSS
Comments
Workers representation is effective and I suggest that you read the
article by Mr Saviour Rizzo in the Sunday Times entitled Employee
Representation on Bank of Valletta Board. May I also refer you to European
Union studies on such a concept which are easily accessible.
Shareholders at the AGM definitely elect the directors, however Government
appoints 2 directors through his shareholding prior to such AGM and these
are the Chairman and Worker Director.
If the current workers representation is removed and a director is directly appointed by Government just as the post of Chairman is done this will not increase representation as stated but insisting on the concept that government appointees will be purely selected. Contrary to what had been advertised or preached prior to the last election.
Workers elect their representatives of their union , shareholders elect the board of directors.