Malta Shipyards came to a standstill for several hours yesterday morning after the General Workers' Union ordered industrial action.

Curiously, the news about the action was not broken by the union, as usually happens, but by the management, which said that the actions were jeopardising the privatisation process.

The union ordered what is technically known as stoppage, which means that workers would simply put their tools down and stop working for a number of hours.

The order to strike was issued in the morning with the GWU claiming that while Maltese workers who applied under an early retirement scheme were paid their severance pay and released from duty, foreign workers employed on a temporary basis were still working there.

But the yards' management said the action ordered by the union was in breach of both the collective agreement and a subsequent agreement reached between the union and management on Wednesday. It is holding the union responsible for any financial damage it may sustain.

The management even warned that it will be taking legal action against the union on Monday unless the action is stopped.

The management, which is still committed to deliver a number of conversion contracts, had asked employees who applied for the early retirement schemes to stay on and help finish pending projects.

An agreement was reached on the matter with the GWU, stipulating that workers could be released from duty once their work was completed and their severance pay settled.

That same agreement, the management continued, also laid down that, in this transition process, foreign labourers would still continue to work at the shipyard at the same time that local employees were released from duty, this due to differing skills.

The management said that the GWU was now insisting on the release of all foreign workers immediately.

Recently, the company had released 148 workers, leaving 733 Maltese employees in its various sites together with 105 temporary foreign workers. It said the release of these employees would not affect their salaries until the end of the year and would also not affect their severance pay.

It said the action taken by the GWU could affect the privatisation process and the future of those workers who had not accepted the early retirement schemes.

"Unless it wants to risk the livelihood of its members, the GWU should reconsider and take immediate corrective action before it further jeopardises the successful privatisation of the shipyard," the management said.

Contacted last night, GWU general secretary Tony Zarb said the union had no comments to make on the matter. When his attention was drawn to a statement issued by the shipyards management holding the union responsible for damages, Mr Zarb insisted that the union did not need to reply to anyone's statement.

"I expected you to ask me about the letter we and 10 other unions sent to the Prime Minister on the water and electricity tariffs and not about this," he said.

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