Government ‘will do its utmost’ to ease the burden on Air Malta employees

The government was unable to guarantee jobs for Air Malta employees but it could promise to do its utmost to minimise the burden on workers as the national airline went through the vital restructuring, Prime Minister Lawrence Gonzi said.

“We are committed to saving Air Malta... The only way to save it is through restructuring, which means that some jobs have to be cut,” Dr Gonzi said in an interview on Radio 101.

He said the airline’s new board of directors, announced in May, was specifically briefed to take decisions that made the most commercial sense. “If these decisions hurt workers in any way, the government will intervene to minimise the burden through a range of options like early retirement schemes,” he said.

Dr Gonzi cautioned that although the national airline was very important for Malta there was still the risk it would crash into a wall. In order to save the company, which lost €36 million in the financial year ended March 31, all those involved had to cooperate and be realistic.He thanked all those who helped stop the pilots’ strike planned for last week. The pilots had threatened to strike but their action was averted following a three-hour meeting with the Prime Minister on Wednesday.

Hundreds of Air Malta workers took to the streets in Valletta on Friday marching in silence towards the Office of the Prime Minister demanding that their jobs be safeguarded.

“I understand that the workers’ demonstration was aimed at saving Air Malta... The government cannot guarantee jobs but we can guarantee we will do our utmost to ease the burden on workers,” he said, adding that this had been achieved when Sea Malta and Malta Shipyards were privatised.

According to the draft restructuring plan, drawn up by Ernst and Young, the airline will have to shed 511 workers, making savings in wages of between €12 million and €15 million.

Dr Gonzi also voiced concern on the financial situation in the eurozone. He called on all social partners, employers and workers to remain determined to ensure Malta’s economy is a successful one. He said that on Thursday he would be attending a meeting in Brussels in which heads of state and of government would be discussing the second bailout for Greece.

Helping Greece was no charity work, he said, pointing out that assisting the country to get back on its feet would help stabilise the economy throughout the EU.

He criticised the Labour Party for lacking political substance and for failing to provide concrete proposals to challenges being faced by the country.