Majority of workers who applied 'have received' severance pay

Most of Malta Shipyards' 1,567 workers who applied for the early retirement schemes have been paid their severance pay and only 531 of them still have to receive their dues, The Times has learnt.

Recently, the government was criticised for not having paid the workers yet but, when asked, the Finance Ministry said that 1,036 of the workers who opted for early retirement had received their golden handshake money.

Only 59 workers never applied for any of the schemes and remained on the company's books and another 679 who had applied for early retirement still work at the yards for the time being after they accepted an offer to stay on to complete the remaining contracts until the company is wound down.

The schemes were launched in mid-August ahead of the yards' privatisation. Soon after the government had announced its intention to privatise the loss-making shipyards, the government had proposed four schemes: Scheme A for workers aged 56 and over; scheme B for those aged between 50 and 55; scheme C for the voluntary resignation of those aged 40 to 49 and scheme D for the younger workers.

The maximum amount the workers who applied for each scheme could receive varies but the minimum payable is €11,650.

Just over one third of Malta Shipyards workers who applied for the early retirement schemes are in the 40 to 49 age bracket.

A Finance Ministry spokesman said that 1,036 have already been paid and another 130 are expected to be paid in the coming days. The remaining 401 will receive their payment in due course.

After having received 50 expressions of interest in the shipyards' privatisation from prospective bidders, the government issued a call for bids. The first call for expression of interest 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.

The government did not disclose any details on the interested companies.

The deadline for bids for Malta Shipyards' privatisation closes on February 12. The privatisation is being split into four units: the drydocks, the shipbuilding area, the Manoel Island yard and the super yacht facility.