Hundreds of Air Malta workers apply to fly away

Air Malta’s target to shed some 500 employees has been met with the closure of the first redundancy and retirement schemes for members of the General Workers’ Union.

The schemes closed last week and according to the Finance Ministry more than 500 employees applied while another 50 applied for alternative employment in the publicservice.

Similar schemes for cabin crew and management staff are expected to close in thecoming weeks.

Finance Minister Tonio Fenech described the move as “a very important step towards saving over 800 jobs at the company”.

He said the reductions were achieved with the full support of the unions and the high level of participation would enable the company to move forward quickly with its restructuring plan. The government, as the major shareholder, wanted to ensure that employees retiring from the job not only received adequate compensation but were also supported by the Employment and Training Corporation to find alternative employment, Mr Fenech added.

“We want to ensure a viable future for the company while at the same time ensuring the least possible social impact for workers and their families,” he said.

GWU members were always going to be the bulk of redundant employees given that the union represents a majority of the airline’s workforce.

Union general secretary Tony Zarb said the number of applications did not come as a surprise. “Many workers had lost hope and most applied reluctantly but I hope that after all this Air Malta will be saved.”

Mr Zarb said the union would be holding all those involved in drawing up the restructuring plan responsible for the airline’s continued existence from now on.

Employees who applied for the schemes will leave the airline over the next six months. Over 90 employees have already left the company and found an alternative job or taken early retirement.

Employees still on the company’s bookswill have different working conditions as the airline strives to be more efficient and customer-oriented.

The voluntary redundancy and early retirement schemes are expected to cost Air Malta some €20 million. According to the restructuring plan submitted to the European Commission for approval, the government has to fork out more than €200 million in the form of additional share capital and the purchase of the airline’s property.

The capital injection, which is crucial for the airline’s survival, can only happen if Brussels gives its go-ahead.

ksansone@timesofmalta.com