Workers say YES to Air Malta rescue

Air Malta workers, members of the General Workers’ Union, have voted overwhelmingly in favour of the restructuring package proposed by the airline.

In a secret vote held between Monday and yesterday, 92 per cent approved the package that includes retirement schemes and new working conditions for employees retained by the airline.

The result was communicated to the media by the GWU yesterday. However, no details were given as to how many workers actually cast their vote.

92%

approve package of retirement and working conditions

Air Malta is undergoing a restructuring exercise that will see the workforce reduced by half.

The GWU represents about 800 workers of the 1,300 employed by the company. With predominance among office workers and ground operators, the GWU membership base is the one set to suffer the brunt of the airline’s redundancies.

Workers who spoke to The Times on condition of anonymity said the biggest sticking point for the union was the set of working conditions proposed by the company.

This included more flexibility with longer working hours in summer compensated by shorter working hours in winter.

They said that employees retained by the company would receive a one-off taxable bonus of €4,000 spread over two years and a three per cent wage increase backdated to January 2011.

Employees retained by the company would receive a one-off taxable bonus of €4,000 spread over two years

Apart from the retirement schemes, they added, the government was also offering alternative employment to about 200 workers with public entities and agencies.

In a strongly-worded statement, the GWU said workers did not have an easy decision to make. They had voted “under pressure” after they were repeatedly “threatened” by the Prime Minister, the Finance Minister and the airline’s management that if they voted against the rescue plan the company would resort to forced redundancies.

The GWU held an information meeting for workers on Monday during which the package was explained. Workers were also “reminded” that before the election the Prime Minister had sent them a personalised letter promising job security.

The statement quoted GWU general secretary Tony Zarb during Monday’s meeting telling workers that the union would continue to work for them “whatever the outcome of the vote”. According to the GWU, the result of the vote showed that it were workers who wanted to save Air Malta and not those who intimidated them. Two weeks ago, the airline broke off discussions with the union after no agreement could be reached on some aspects of the restructuring package. Air Malta has to restructure after the government bailed out the company last year to the tune of €52 million. The European Commission accepted the bailout on condition that the airline presents a restructuring plan. The plan is being evaluated by the Commission but the government has repeatedly said it did not want to wait for Brussels’ approval to start the restructuring exercise. The company has reached an agreement in principle with three other unions – the pilots, cabin crew and engineers – on the restructuring package.

Package details revealed

Voluntary redundancy scheme
• This scheme applies to those with seven years or more of service with the company. Applicants will receive a non-taxable lump sum equivalent to six weeks pay for every year of service including a 12 per cent upgrade.

Early retirement scheme
• Workers aged 55 and over will be paid 65 per cent of their basic salary plus a 12 per cent upgrade until retirement age. National Insurance contributions will be paid by the company.
• Workers aged between 50 and 54 with a minimum of 20 years service will receive a yearly payment equivalent to 20 weeks pay plus a 12 per cent upgrade until retirement age.

Employees staying on with the company
• Workers will receive a one-off taxable bonus of €4,000 spread on two years (2012 and 2013) as compensation for the lack of collective agreements and a three per cent wage increase backdated to January 2011.
• The company is insisting on more flexibility with the more contentious issue relating to the ground staff, who will be asked to work 30 hours a week in winter and 50 hours a week in summer to cater for seasonal fluctuations.
• The company will be adopting the last in first out principle throughout the redundancy period subject to managerial discretion in particular circumstances.

Alternative employment
• Workers who do not benefit from the redundancy schemes will also be offered alternative employment. Government has identified vacancies for 201 people in various departments and public agencies. The alternative jobs on offer are: 86 clerical positions, six administrative jobs, four security guards and 105 messengers and handymen.
• The government agencies expected to absorb these workers are: the planning authority, the Attorney General’s office, the Housing Authority, libraries, the Malta College for Arts, Science and Technology, the transport authority, the consumers’ watchdog, Water Services Corporation, Malta Investments Limited, Wasteserv, the Freeport and the Foundation for Social Welfare Services.