Air Malta has hit out at unions for passing “misleading” comments that only heightened the level of anxiety felt by their own members.
These comments increase the high level of anxiety
The national airline said comments by the four unions representing the company’s staff on the speed of the restructuring process were incorrect and misleading.
Moreover, the comments came at a “particularly sensitive time for the airline” which was awaiting the European Commission’s decision on the restructuring plan submitted earlier this year.
“These comments also increase the already high level of anxiety amongst employees – their own members.
“Air Malta’s turnaround plan is primarily aimed at saving 800 jobs and for Malta to continue having a national airline that will be in a position to successfully compete and continue assisting the island’s economy and tourism sectors. We do not have a second chance at this. The blunt reality is that, if this restructuring does not work and Air Malta does not become viable according to the submitted plan, it will close down,” the airline said.
The unions last week lambasted the rate of reform at the beleaguered airline, saying the new management had simply focused on the easiest task: shedding staff.
They were reacting to an interview with Air Malta chief executive Peter Davies, in which he gave an overview of the company’s performance in the last financial year and the latest updates on the restructuring process.
Mr Davies was upbeat on the airline’s performance, saying it had exceeded its goals for the last financial year and remained well on target to break even by 2014.
By the end of this financial year the airline would have spent €3.5 million less on fuel and €4 million less in wages.
He was also positive about the restructuring programme, saying the milestones it had set out for itself were being achieved.
The unions then laid into the airline and its management for being “too slow” in implementing the restructuring. They said the “little” that was being done was taking place behind the unions’ backs.
But Air Malta has hit back, saying the more than 160 processes forming part of the airline’s restructuring were being done in a staggered manner and were all in hand.
The airline said pilot union president Dominic Azzopardi’s comment on lack of consultation was “ironic” when just last week the union’s executive committee held a meeting with Mr Davies on their aspirations for the airline.
A week before that, Air Malta had also organised a “very positive” conference for its pilots to update them on the restructuring.
“Air Malta is taking a holistic view of the airline’s restructuring, not just a financial turnaround.”
The airline said it would be releasing about 450 employees through a staggered plan, depending on the individuals’ role and section.
This shedding process was moving in parallel with the appointment of employees in new posts in the new airline structure. A total of 107 calls for 177 positions were advertised internally. For these posts the airline received 1,043 applications from 309 employees. The choice involved a thorough selection process.
The airline said certain skill sets were found not to be present within the airline and at least 23 positions will be offered to external candidates through the Employment and Training Corporation and adverts in the media.
Replying to criticism on the engaging of part-time staff, Air Malta said it operated a seasonal business, which meant it had excess staff in the low winter months, creating additional costs.
“Having part of the workforce on part-time employment is an accepted practice in a seasonal business. Part-timers receive all the benefits of a full-time employee on a pro-rata basis.”
The airline said the opening of new routes was not part of the airline’s immediate plans.
“The turnaround strategy sees the airline first fix its financial position by reducing costs, renegotiate contracts, focus on core activities, implement robust systems and processes and by keeping management accountable. Only then can it optimise and exercise strategic options like opening up new routes, achieve network and revenue growth and add or change its aircraft fleet,” it said.
On the move to Skyparks, the airline said this was part of the “much wider cultural revolution process” aimed at creating a new environment and company culture in which employees could work collaboratively and more efficiently.