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Alpa's notification of industrial action unfounded - Air Malta CEO

Alpa's notification of industrial action is unfounded and it was in the interest of both the union and Air Malta to engage in a serious dialogue to identify solutions to the current impasse and ensure a viable future for the airline, CEO Peter Davies said in a letter to Alpa.

Mr Davies' letter was sent to Alpa in reply to a letter from Alpa's lawyer Chris Cilia, informing the airline of the union's intention to strike on Saturday.

Alpa listed as its reasons for the action the termination of the employment of 13 pilots, the airline's failure to initiate discussions on a new collective agreement and the absence of consultation or discussion with the union in the restructuring process.

Mr Davies told the union that Air Mlata wrote to Alpa in January last year declaring how it intended to renew the Air Malta/Alpa collective agreement.

Alpa's secretary at the time acknowledged the letter by an e-mail in February when a number of improvements were requested.

These included a 30 per cent increase in basic salary and weighted units, a guaranteed minimum of 150 weighted units per months, clarification of clauses under dispute and a collective agreement valid from August 1, 2010 to July 31 this year.

Mr Davies said that the proposal of a 30 per cent increase in basic salary and a guaranteed minimum of 150 weighted units per month, which equated to an average increase of €25,000 per annum per pilot was considered unreasonable, even more so since the request was based on a collective agreement which would have expired within 12 months.

Given the difficult circumstances being faced by the company, the increase in wages and weighted units proposals could not be considered favourably by the airline.

Notwithstanding this, after months of discussion, an agreement was signed in May this year to address the clarification of clauses under dispute.

On the termination of the jobs of 13 pilots, Mr Davies said these pilots' contracts were on a definite basis and due to expire in August and September.

Air Malta's letter, he said, was confirmation that their contracts were not going to be renewed and not an arbitrary termination of employment. This was in line with the contractual obligation that Air Malta had entered into with the pilots and known to and accepted by all interested parties.

The CEO said that Air Malta had invited Alpa to participate in meetings with MIA dedicated to achieving cost reductions, and the government had also included the union on the steering committee.

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John Pecorella

Jul 13th 2011, 17:05

I believe the costs run closer to a €100K

Mr Emanuel Curmi

Jul 13th 2011, 16:37

But it seems that holding the nation at ransom is giving you the kick of your lives.
This CEO has only been recently appointed so give him a chance. Correcting the wrongs of his predecessors is no easy task either and it certainly cannot be done overnight. What he is saying are the realities of the airline industry and the sooner one gets to to terms with this and return to the negotiating table the better.

T Mifsud

Jul 13th 2011, 15:52

It's not a question of salary, it's a question of the survival and prosperity of Air Malta. The salary really doesn't feature in these negociations

T Mifsud

Jul 13th 2011, 15:33

The government is playing divide and rule with the people and the misinformed are falling to it! This is governments dirty political play!

Lino Busuttil

Jul 13th 2011, 17:29

Some mud slinging in the nick of time...well done CEO, at least he didn't say they are overpaid.

Emvic Debono

Jul 13th 2011, 17:53

Charles your statement is totaly without any basis of reasoning.
If AirMalta sends pilots away ,and they beleive that the plan will work in two years you will be paying tax to employ Foreign Pilots with Hefty salaries and new cadets to be trained by the company to meet the demand.

Mr Emanuel Curmi

Jul 13th 2011, 15:09

@T Mifsud
Nice tactic. I believe it is more appropriate to comment on the ALPA demands rather than trying to discredit the present CEO. If dialogue is what is needed in such a situation one doesn't start by throwing mud at the other side. This is usually done when there is something to hide.
If ALPA's tactic is to pressure KM to maintain the full present compliment of pilots under the threat of grounding the airline, this will undoubtedly turn out to be the dirtiest maneuver of all.

Mr Tim Ripard

Jul 13th 2011, 15:19

He is the CEO and he's the most important person at Air Malta.
If ALPA has no argument with Air Malta why is it going to make Air Malta lose millions of euros and probably cost ALL Air Malta employees their jobs (not to mentione many other people too and not to mention the immeasurable harm this strike will cause to Malta now and for months or years to come)? To show the rest of the country just how greedy and stupid they are?
All this because 13 pilots have definite contracts which are coming to an end and which will not be renewed?
I hope that they are taken to court and made to pay for all the damage they cause to the country.

T Mifsud

Jul 13th 2011, 15:47

While you can be forgiven to think like that, it is definitely not. Ghandek pacenzja tara dawn il-punti? ....:) thnks

1) The pilots want not only the survival of the airline but its PROSPERITY to challenge low cost airlines directly
2) The government will fire ANY dirty play at the pilots...last one being that they will be taken to court as the strike would be illegal
3) The pilots' agreement expired ages ago and were waiting for the company to come out of recession before they discuss it.The company hasn't come out therefore they didnt discuss it.
4) The threat the the government would take the pilots to court became imminent
5) The pilots' causes of all this was to ensure AM in the black by dealing with MIA, Subsidies to low cast airlines, contracts and cargo. It was going to fizzle out if they take pilots to court.
6) PILOTS ARE LAWPHILES ! They follow the law to the dot, the rules to the letter, thus ensuring SAFETY
7) The ONLY way how pilots can pressure the government to deal with MIA, Subsidies to low cost airlines etc is to bring to the fray that the contract expired and thus they have it legal
8) Pilots want to ensure that contrary to what happened in the false restructuring of 2004, this time the restructuring is done well, from the top down (not stupid MP tickets etc, but MIA, Subsidies to low cost airlines, Cargo and eliminate wasteful contracts going to certain people)


T Mifsud

Jul 13th 2011, 15:58

No Tim, the government media and tactical politics made it look like that and really everyone is falling for this.

The issue is :
- The gov wants AirMaltato pump in MIA 25m a year instead of going to the old terminal which is owned by Air Malta
- The cargo is below standard charges to give leeway to certain large companies here
- Some expensive contracts are going to certain people, the reason some of which want Air Malta status quo
- And finally, the government's bad policy to subsidise Ryanair and giving it Air Malta routes, while stealing the same routes from Air Malta and not give it a cent in subsidies.

Rocco Camilleri

Jul 13th 2011, 17:03

Well said Mr.Mifsud in your comments in the blogs. This is a Government strategy to put Air Malta down by placing other Airlines (LOW Cost) in advantage of her. Also by letting other payments done for cargo at bare minimum to air Malta airline. If one had to Google search - Air Malta's Finance reports he will exactly find from which years Air Malta began its decline. Dr.Gonzi is leaving all this happen so that more chance is given to certain people to throw mud to the ALPA representatives of pilots and the other lot. Its a SHAME to leave this mess, while paying all that amount of money to a part-time CEO to make a report, which finally is going to be the same as others done to Malta's assets- Malta -post, Go, Sea Malta, Free port etc; etc;

J. Borg

Jul 13th 2011, 14:55

Dear Pilot Galea

You will force yourself into exile if you strike in this delicate situation and cause Air Malta more damage at this stage. You will force yourself to exile if you do not accept your current working conditions and salaries. Like many other professionals such as MDs, IT specialists, Engineers, Scientists, living in sunny Malta comes at the price of relatively lower salaries. Pilots are no exception. If you prefer to have a much higher salary comparable to those of pilots aboad, then be prepared to live away from sunny Malta.

owen sammut

Jul 13th 2011, 15:00

Then bring down the whole company and exile 10,000 people in the tourism industry.

Big baby

John Pecorella

Jul 13th 2011, 15:32

@J. Borg

You just replied without even reading what A.Galea wrote. I suggest you read before you write.

@ Owen Sammut

I hope you have the brains to realise that Air Malta is at the brink of bankruptcy because this government sucked out dry all Air Malta had.

If the government does give a hoot about these 10000 you say, then he should have acted years ago, back in 2004 not now that it's practically dead. Now he will just privatize it like he did with MIA. And he would have eventually not only sold his doorstep but also his steps.

T Mifsud

Jul 13th 2011, 14:50

You are wrong! That is not the issue.

The issue is MIA, Contracts, Subsidies to competitors but not AM and cargo.

These need to be dealt with BEFORE firing people as they are the biggest drain by far of the cash of AM.

owen sammut

Jul 13th 2011, 15:01

Im sure emirates will take you in, leave us cwiec in peace - travelling low cost

John Pecorella

Jul 13th 2011, 15:38

Apart from the fact I'm no pilot, but an open minded citizen, I sure as much hope to see you travelling with the low cost as from next winter, now that Ryan Air already confirmed that it will ground up to 80 aircraft.

How do you intend to fly low cost?

Oh, you can always use the catamaran to go to Ibiza or wherever.

Marco Lucia

Jul 13th 2011, 14:17

when a collective agreement expires, both sides submit their proposals and hopefully then settle for a happy medium. So many months ago ALPA submitted what today look like unrealistic proposals.

In the meantime the ALPA committee started looking into various matters and things started to surface. Today they are fighting the bleeding of funds from the Company so eveybody can get a good deal. Instead the people in power are publishing correspondence selectively and bloggers are commenting on issues they have no knowledge about.

T Mifsud

Jul 13th 2011, 14:48

No they are not. But the CEO is firing 511 to justify his 25K every 18 days without touching on the real problems draining Air Malta

Mr R ferriggi

Jul 13th 2011, 14:58

all i know ( as the normal man in the street is:

1. i am paying from my own taxes for a failed company.
2. it is unbeleivable for workers to demand wage increases in such circumstances.
3. we have been robbed for years by ''our sweet and lovely '' national airline.
4. the directors and managers of Airmalta have had it oh so good for years.

finally.,,,, I DO NOT WANT TO KEEP ON PAYING TAXES WHICH GO FOR FAILED COMPANIES.

J. Borg

Jul 13th 2011, 14:59

Pilots are no exception. Many other professionals also study abroad, frequently with a student stipend. On returning back to the island, there is no guarantee of a job here....so they may have to actually go to work abroad. It is always sad to see such brain drain but Malta's size is what it is. Pilots are no exception. But doing a strike and thinking that such problems will be solved is not a solution.

T Mifsud

Jul 13th 2011, 16:05

Mr Ferriggi

1) You are paying taxes ONLY to subsidise Ryanair. Air Malta does not receive subsidies
2) The workers are not demanding wage increases from a zero cash company. They are trying to make the strike legal.
3) No it was the governments who used our national airline like a prostitute to cater for jobs, give luctrative contracts to companies etc ...
4) Yes you are right on the last one

Mr R. Zammit

Jul 14th 2011, 00:08

It's worse than that Ms Farrugia,

The twelve whose contract expires in September (all University Engineers) all had jobs from which they resigned on a promise from Air Malta, that after 3 years of training (that cost nearly €100,000 each, but they personally survived on about €220 a month subsistence - for 3 years!); a few days before their probation (for an indefinite contract job) was about to expire, they were summoned and out of the blue given a six month definite contract instead.

This was not their initial understanding nor agreement and they would not have resigned their jobs, change career, study a fresh course, get caught up for over a year in limbo on much less than the dole...... to be then given a 6 month contract.

Nathalie Frendo

Jul 13th 2011, 14:33

Mr. Pace maybe if in Malta we had anyone who ever had the expeience in handling such a mucked up airline we would be giving money to a Malti. But dear me if you have monkeys you need peanuts. People who are responsible for such a delicate issue, and also a political one in this case deserve to be paid well. Its the Malti who does not know how to get paid not the foreigner who is paid too much.

T Mifsud

Jul 13th 2011, 16:01

Pilots are striving to protect YOUR job as well. And you go against them. Therefore it follows you don't like your job then, or else ma tridx tifhem

Mr Victor vella

Jul 13th 2011, 16:48

Qed nistenna lilek biex nifhem Sur Mifsud.

Joseph Farrugia

Jul 13th 2011, 17:43

inhajjrek tispjeglna b'mod dettaljat u preciz ghaliex l-AirMalta qieghda f'sitwazzjoni daqstant terribbli, ghax donnok taf sew sur Vella.
Irrid ukoll il-provi ghal dak li se tighid; ma rridx nisma hmerijiet.

T Mifsud

Jul 13th 2011, 16:09

What a great question! You rise above pleb politics. It is so true what you say, ... but you wont have it because if you really get to know the details in the media, several companies would fall, other major ones would have their shares crash, a big company would fire people and create havoc in the country.

We wont go there because we wont see the details, but I'm sure ALPA have them all hence their fight!

Marco Lucia

Jul 13th 2011, 14:09

ara vera pajjis mibni fuq l-ghira!
What difference does it make that you earn less than the requested increase? By your argument, why don't we all settle for minimum wage? The salary is what it is because many pilots left in the 2004 period due to much better salaries abroad. To keep pilots here, Air Malta agreed to a salary increase.

This is besides the point in question. What is being discussed is the bleeding of Company funds into non-sensical contracts. Once again one must ask why none of these allegations was addressed properly.

And here on these blogs you can immediately see people posting with a hidden agenda. Just look at the number of posts stating that it is scandalous Air Malta has 147 pilots for 10 aircraft. Firstly Air Malta had 12 aircraft when the pilots were employed. One aircraft is now rented out in Mexico so the number is now down to 11! Where the 10 aircraft figure came from is beyond me.
As for the pilot to aircraft ratio, has anyone actually looked at what the industry standard is?

T Mifsud

Jul 13th 2011, 14:46

What rubbish of arguments! What do you say about the CEO who gets 25K every 18 days! Say something I Cilia about this now.

T Mifsud

Jul 13th 2011, 14:43

Again throwing bile and venom at pilots. You should be ASHAMED of yourself! Why all this hate is all beyond comprehension. Provide solutions no try to shoot the messenger.

There is no cash at Air Malta what are you talking about contracts, agreement etc? You are either completely ignorant so because you are like that you are forgiven, or else your postings stem from die hard envy of pilots.

Mr Victor vella

Jul 13th 2011, 17:05

Hu break Sur T Mifsud. Tidher li ghandek interess personali ghax int biss qed tiftah halqek. Inthom tridu tkissru l-Air Malta u kulhadd kontrikhom. Ma wigibtx xejn minn dak li ghedt jien u hlief hdura minn halqek ma hargitx sur Mifsud. Ghidu li dak li qal Daviex huwa gideb jew issa ghax qed jipprova jghid il-verita u jikxfilkhom ghawarkhom int li min jaf min int qed tipprova thajjar lil kulhadd. Din hija il-hidden agenda li hallejtu mohbijha. Hekk tridu issalvaw l-Air Malta?. Kulhadd kontrikhom. Isthi. Dawn huma -soluzzjonijiet li qed toffri int. Egoismu sur Mifsud u qed taqghu u tqumu minn kulhadd. Ga hemm 69 impjegat kontrikhom. Jien is-70..

Simon Oosterman

Jul 13th 2011, 14:17

Please tell us which are the issues at stake and the far more reaching consequences.

T Mifsud

Jul 13th 2011, 14:31

That is exactly correct Gable.

Ms Maria Vella

Jul 13th 2011, 15:25

Pray enlighten us what these issues are Mr. Porter

T Mifsud

Jul 13th 2011, 14:38

Only uninformed people think that one can have an airline with less than industry standard salaries.

Worse, only ignorant people think that the company is going bankrupt because of salaries of pilots!

The reason why the company is going bankrupt is :
- The subsidies given by government to low cost airlines and not Air Malta
- The unnecessary siphoning of millions to MIA when Air Malta can rebuild a terminal on its own land (but the government doesn't wantit to protect MIA)
- The give away prices of cargo to certain entities arranged by government
- The unnecessary lucrative contracts given to certain contractors
- Lastly to blame are the workers, who the government deceived but used Air Malta as a prostitute of Malta

This is what needs to be tackled.

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