Go to cut workforce by 350

J Said

Mar 28th 2009, 11:26

So.... Tecom buys Go....

the government puts our mind at rest that no workers will be axed before 3 years....

tecom, buys a company in Greece.... (1 off payment according to Mr Kay) so in reality Go is not losing money...

Now 350 are being axed!

Thanks Tecom.....

Waiting for Tecom to start managing Smart City.....

Mark Mifsud

Mar 28th 2009, 11:02

"Rightsizing"?

.......no wonder the world economy is in such a crisis with CEOs being paid silly heaps of cash to come up with even sillier buzzwords...

edward bartolo

Mar 27th 2009, 23:20

Quote: GPortelli
"Privatisation is healthy for us consumers. Now we are really paying less for more!"

The private sector is motivated by profit. How can that result in a better service while the customer pays less? Privatisation has always resulted in the increase of prices. However, one cannot have only advantages. With the state more involved in the economy, one has less choice and lower prices, while with the private sector more involved, one has more choice but higher prices.

You cannot have only advantages, either way you go.

S. Camilleri

Mar 27th 2009, 22:13

Where did the losses come from? The workers? No. Actually the workers managed to keep the company well afloat in these difficult times ... So who lost the money?
1. Past Government incompetence in mishandling old Pension Schemes, ergo not the workers
2. Freaky decision to play "Monopoly" with Maltacom cash pile. Who took this decision? Certainly not the workers nor maybe management I would say.

So who is the proverbial deadweight around the company's neck???

Joe Fenech

Mar 27th 2009, 21:10

I meant...use the economic crisis as an excuse to lay off people.

Joe Fenech

Mar 27th 2009, 20:10

Could we make sure that companies are not using the economic crises to lay off people?

M. Cachia

Mar 27th 2009, 19:41

@Mark Farrugia cannot agree with you more than that Mark. Over and above, GO have just leased a fleet of semi-luxury vehicles for their top managers ... credit crunch? Bad financial results? Not or management though, as they keep on enjoying the high life while the regular employees risk their jobs

Adrian Archer

Mar 27th 2009, 09:27

@ L. Galea

Mr Galea mentioned the fact that certain socialist ideals are being put into place in the USA. True as it may be it is far off from what we had in Malta.

Let me remind you that it is dangerous to have a purely socialist economy. People tend to accept that their workplace is scure and protected and because of that they have no motivation to work. They wouldn't bother because they are safe!!!

People might say this is good however if people don't work the economy will collapse.

Erik DeBattista

Mar 27th 2009, 08:39

@Andrew Grech

Your sensitivity is touching. It's clear you're not risking your job and that you're no socialist!

L..Galea

Mar 27th 2009, 08:34

Andrew Grech
You seem not to follow my postings regularly for I have given positive contributions and congratulated those who had to eb congratulated.
As for the shedding of workers, I am sure that you are neither a GO worker nor a worker but perhaps an employer as otherwise you will not reason as you did.

E Gatt
If private enterprise is more efficient, why were the Banks in danger of going bankrupt and needed STATE help?
Then why not have State banks and State enterprises that will put back their profits in the State coffer to be used for the citizens?
When a worker loses his/her job usually it is not one person, but a family that depends on that worker for its living.
Under the capitalist system fervently promoted by the eu workers have again become slaves at the mercy of their employers.

A J Muscat

Mar 27th 2009, 05:05

Would Kay and co kindly explain on what grounds they let themselves be dragged by TECOM into a multi million investment in a Greek telco - within less than a year this has cost GO shareholders millions of euros in losses?? What was the point of that "investment" when GO is facing so much competition locally? Truly the Chairman, CEO and Directors should resign if they still have any pride or decor left in them. Shameful!

Ronnie Gauci

Mar 27th 2009, 00:21

The local market cannot support all these providers and unfortunately the "old ones" like GO (Maltacom) will suffer the most as they didn't forsee this scenario in the past.

L..Galea

Mar 26th 2009, 23:09

E Gatt
That's your opinion and you are entitled to it, but I beg to disagree.

Andrew Grech
You were not attentive enough for I have congratulated the government where in my opinion it deserved being congratulate, but that doesn't mean that I must congratulate it when I don't think I should.

D zammit

Mar 26th 2009, 22:25

My only question is this:

What are the perks and salaries of the top management and by how much were these decreased as a measure to increase the company's financial strength?

C. Scerri

Mar 26th 2009, 20:22

Especially under the MLP (but to an extent even under the PN) parastatal companies (Maltacom being the first and AIRMalta a close second) were mostly used as a good vote catching exercise and thus these were burdened with extra workers. Any private company strives to have the least number of workers required and I am not surprised at Go's action.

The workers should take the opportunity of early retirement as others have done and benefited ( look at the Dockyard workers).

Peter Bonnici

Mar 26th 2009, 20:02

@ L Galea. The mintoff days are over. Deal with it mate!
Even PL leaders now denounce his tactics, and most PL followers are now ashamed of his way of handling business matters. Yet you, in your infinite wisdom, seem to think that communism is the way forward. LOL.!
Thank God you are in a tiny minority...Just a 'squeak' in the wilderness.

Mark Farrugia

Mar 26th 2009, 19:44

I am amazed at the fact that no journalist has yet picked up on a very important fact related to Maltacom/GO/Tecom namely:

When Tecom bought Maltacom, we were told that Maltacom was sitting on a pile of cash....very high levels of liquidity running into tens of millions.

Consequently, GO announced the acquisition of a 50% stake in Forthnet - an unknown Greek company which is now not doing well at all. In fact, GO's investment seems to be going from bad to worse with no end in sight. The company declared a 15million Euro cost in its 2008 results directly related to this gone-wrong investment.

May I ask: was this investment financed from the pile of cash which Maltacom had? I think so - this is our money, Maltese tax-payer money, the same money which for decades was sucked out of our pockets to finance the inefficiencies of Maltacom.

So our money has been taken to finance a hopeless Greek company.

Great news, ain't it?

Answers please.

Attn Unions: wake up. Tony Zarb, Gejtu et al.... where are you on this matter of 350 jobs about to be lost?

Will we continue to suffer? Workers want answers...now!

George Sammut

Mar 26th 2009, 18:44

Apart from 2 'one off payments' Go would have made a very healthy profit last year...thanks to it's workers. Whose responsibility were these two mishaps??? Someone up there should bite the bullet and resign. Shame on you GO for treating your workers like you're doing, at such a difficult moment for our economy. What a GREEDY management!!

E Gatt

Mar 26th 2009, 18:01

@L Galea
Capitalism like everything else isn’t perfect.

The EU and US governments have done their utmost to save private banks in distress by avoiding a run on the banks and providing financial security. The Mintoffian approach to the private banks in the 70s couldn’t have been more different.

Andrew Grech

Mar 26th 2009, 17:42

@ L Galea
You must be the timesofmalta.com number one fan!

It would be great to see a positive contribution from you...with no bi-partisan bells attached?

GO needs to shed, let it be. They run a business and sustainable profit is very important. It allows them to reinvest and develop further products and keep prices down. That's modern society...live up to it...face it and please be more positive or better still, please use constructive criticism and not destructive.

We are much better off today than we ever were...gone are the days where one worked at the bank because it was a secure job. It is a double-sided sword. Employees have become more demanding and move on, companies too. Simple.

L..Galea

Mar 26th 2009, 17:13

G.Portelli et al
The only right that workers and Labour supporters had during your pn administrations was to be expedited as fast as possible to Australia and other countries that wanted immigration.

As for developments there are always developments and I have no doubt that they would have also been implemented in Malta by a Labour government even though priority was always employment as it should be with every government.

Competition is supposed to work in favour of the consumer, but that is only in theory books. Companies simply discharge workers if their profits are not as great as they had projected.
As for State controls, we are now seeing even the eu and the capital of captalism the USA implementing Socialist measures that had been implemented by Mintoff way back in the 70's.

Manuel Mifsud
Competition has advanced very rapidly since that time and there are computer programmes that allow you to talk to your relatives through internet without paying any charges. That is why the calls have become so cheap nowadays.

The whole affair smacks like the affair of the Shanghaid Mid Med Bank by HSBC.

David Meilak

Mar 26th 2009, 14:23

While I never like to hear of anybody losing his/her job, I must state that I do not have any sympathy for companies that used to make a profit only due to the fact that they had a monopoly. I remember paying LM 1.50 to Lm 2.00 per minute to call internationally, and also having the then so called Maltacom even increasing phone charges for people that used to put a phone number on a car for their business publicity, as they used to call these 'commercial rates'. No company should have more workers than it requires, it must be profitable and have competition to be able to control it and offer consumers the best product at the right price. Any company that cannot offer these conditions to consumers should close and leave its business to companies that can offer good services. Again I state that I have no sympathy for companies that in the past enjoyed any form of State monopoly. Besides the fact that this idea of a 'job for life' was only offered to those that were employed in state run businesses. Nobody ever cared for small businessmen that closed businesses and were also left unemployed.

Alexander Morana

Mar 26th 2009, 14:10

L..Galea & Joe Camilleri:
It's the free market. A company which has a monopoly does not provide cheaper and better service. A state owned company can employ the whole nation even it makes a profit but at what margins?
Private companys have to justify their profits to their investors who always demand a higher margin.

c.camilleri

Mar 26th 2009, 14:01

@ l galea. Please do not mention labour times. Under labour one had to have a parrinu to obtain a fixed telephone line which worked under a system long scrapped by other countries. Remember it was a crime to have a cordless telephone. We should forget those miserable times and not boast about them.

E Gatt

Mar 26th 2009, 13:27

@L Galea
It is always bad news that people lose their jobs, however how many people have found a job with Melita, Vodafone, Baymobile and indeed Labour’s very own Redtouch? I am sure that the new jobs total over 350.

Privatisation benefited consumers in Malta by offering choice, reduced prices and job opportunities.... yet some people still feel nostalgic for those Mintoffian days of state control.

Anthony Magri

Mar 26th 2009, 13:19

Why by pass the fact that mobile phones or cellular call them as you want are dangerous for those under 12 years because of their use so near to the brain.Electronic waves cannot be said to be "zero" rated for danger.
Cellular to eliminate any danger are to be used just like a walkman with an ear phone.
The French Minister responsible for Ecology has decreed that children up to 12 years are not to use cellular without the ear phone.This eliminates all possible dangers.
A similar contribution on the same tone and subject was not publishe a few eeks ago.Why?

Paul Grech

Mar 26th 2009, 12:31

FIRST THING THAT MR.KAY AND HIS MANAGEMENT HAS TO DO IS PAY UP THE €12.90 MILLION TO EX CABLE AND WIRELESS EMPLOYEES THEIR RETIRMENT SCHEME WHICH THE COURT ORDERED THEM TO PAY AND EVEN LOSING THEIR APPEAL.

Mark Galea

Mar 26th 2009, 12:22

@JF Vassallo Ebejer
We have competition - you can subscribe to Melita - they say they are 30% cheaper ... :)

JF Vassallo Ebejer

Mar 26th 2009, 11:59

@All you who are in favour of Go’s decision to reduce its workforce even further :

Take a look at this article :

"Maltese still paying steep prices for mobile phones"

Competition my foot……..

Manuel Mifsud

Mar 26th 2009, 11:53

@Lgalea etc.

When Maltacom was parastatal, before the arrival of free market competition, a 5 minute call to Australia used to cost LM10! People used to call their relatives on Christmas, Easter and particular occasions. Nowadays thousands of Maltese call their beloved ones in Australia as often as they wish for a few euro cents!

JF Vassallo Ebejer

Mar 26th 2009, 11:44

@ G. Portelli
Actually it is you who needs to read the news…

This is an extract of The Times report last Saturday
"The loss is attributable to the one-off payments incurred by the court case and the loss suffered by Forthnet. If these are removed from the equation Go has a robust balance sheet and a strong cash flow position," Mr Kay said.
You will note that the CEO is referring to one-off payments, that is, costs which will not be incurred again in 2009.

Furthermore in 2007 the company made a profit of € 27 million.

How can one therefore justify having 350 people employees being made unemployed?

I would have thought that Go would have been explaining how they are going to retrain their people, if need be, to be more productive and efficient, how they will introduce new products and services, how they will prove to people that they should go back to Go.

Oh, in case you have forgotten, the higher the number of unemployed, the higher the percentage of our taxes that have to go to supporting them and their families – in reality you will NOT be paying less for more.

J. Pace

Mar 26th 2009, 11:28

@L Galea

Competition is always healthy for the consumer; this has nothing to do with Labour on PN. Maybe some day in the future Maltese will be able to hold a discussion without being partisan.

Anyways, it is a fact that completion is much stronger today then when Maltacom was the only provider.

Markets change, technology change.... you cannot expect to pay or be offered same packages as a few years ago, especially when the market changes totally (that is not a monopoly anymore).

If anyone will be answering this, seriously there is no point mentioning political parties. Please try to evolve out of this, or at least try and not influence your kids with such partisan mentality.

G.Portelli

Mar 26th 2009, 11:19

@L.Galea
Yes I remember a lot about the labour governments. Better not start cause i ll never finish. I m sure it is not a beautiful situation for the workers and I never agree with companies who lay off workers when they are making a profit. But as I ve told you this is no cuckoo land, this is a DEMOCRATIC country where the individual has the right to choose - a right so neglected by your Labour Governments.

L..Galea

Mar 26th 2009, 10:47

G. Portelli
Why did it shed workers when there was work for them and it was making a profit and now has to outsource because of this?
Paying less for more now are we?
Remember when a phone call was 1c3 however long it lasted under Labour and the company still made a profit?
Seems you are living in cuckoo land Portelli.
Your comment also shows how close you hold workers welfare to your heart.

Philip Gatt

Mar 26th 2009, 10:45

Meanwhile, ans EU report has confirmed what most of us knew already- Maltese people are charged through their noses for mobile phones and tariffs.

M. Cachia

Mar 26th 2009, 10:33

This story has confirmed the rumours i heard recently and, which to be honest, i didn't believe at first.

A couple of friends of mine who work at GO have told me that the company has lost some it's best people over the past year, workforce morale is at an all-time low and GO is outsourcing certain operations because there aren't the right resources in house.
Could this be one of the reasons behind GO's dismal share price drop and their latest financial results?

...Time for some answers Mr Kay (blaming the competition is not good enough)

G. Portelli

Mar 26th 2009, 10:19

@ L. Galea

I don't know which news you read but recently GO made a loss due to the fact that they had to pay millions of euros to retired workers.
More so up to a few DAYS ago there was no competition in this field. Privatisation is healthy for us consumers. Now we are really paying less for more!

Joe Camilleri

Mar 26th 2009, 10:12

@ L Galea

The high salaries that the top managment have.

J Camilleri Baron

Mar 26th 2009, 10:12

Now the next news will be an announcement that the CEO will end his term, the mobile arm stopped growing, their internet business decreased following 2 major disruptions, and Tecom are selling GO.

NEver a dull moment.

L..Galea

Mar 26th 2009, 09:35

Why did it always make a profit when it was a parastatal company and employed more people and now that it was privatized it said ti made a loss when it expanded its business and wants to shed workers?

This is what always happens with privatization.
Charges increase, workers lose their job and service gets worse.

Jake Micallef

Mar 26th 2009, 09:27

As expected...a "blame the workforce" attitude from the management of this company. How about the investors taking responsibility instead? Is this why the government sold Maltacom?!?! So typical. I would be curious to know whether the management have been paid any nice bonuses for last year!!!!