Air Malta launches second Voluntary Redundancy Scheme

Air Malta said this evening it had issued its second Voluntary Redundancy Scheme (VRS) for its employees. The scheme was announced at a meeting of the airline's Works Council and the unions representing Air Malta employees.

"The issue of this second VRS should be viewed in the light of the current global financial situation, the severe fluctuations in the price of fuel which have caused severe turmoil in the operation of all airlines, the rising costs and the resultant financial pressures being faced by the airline. The aim of this scheme is to right-size the airline’s human resources; retain the necessary skills and competences whilst maintaining the right number of employees according to the airline’s changing operational exigencies. This is being undertaken with a view to ensure a sustainable future for the airline," Air Malta said.

The VRS will be launched on December 1 and will remain open for three months up to the February 28, 2009. The offer is open to employees having a minimum of seven years full time employment with the airline. Eligible employees can choose between two schemes:

Scheme A - Employees will be paid the equivalent of one month basic wage per year of paid employment or 65% of their remaining basic wage up to the retirement age applicable to them at the closing date for the receipt of applications for the VRS, whichever is the lower and up to a maximum of €58,235. This calculation will be made on the basic wage applicable on the 28th February 2009.

Scheme B - Employees who will be 58 years old and over on the 28th February 2009 and with the length of service as shown hereunder will be paid the following:

Minimum 7 years but less than 10 years paid employment – a sum equivalent to 1 year basic wage or their basic wage up to the retirement age applicable to them on the closing date for the receipt of applications for the VRS whichever is the lower.

More than 10 years but less than 20 years paid employment – a sum equivalent to 1.5 years basic wage or their basic wage up to the retirement age applicable to them on the closing date for the receipt of applications for the VRS, whichever is the lower.

Over 20 years paid employment – a sum equivalent to two years basic wage or their basic wage up to the retirement age applicable to them on the closing date for the receipt of applications for the VRS, whichever is the lower.

Air Malta said that 120 employees had benefited from the scheme when it was first launched in 2006. The scheme issued today is identical to the previous one.