Air Malta has run out of patience with two of the unions involved in talks over restructuring, saying an impasse had been reached and that it could resort to forced redundancies.

“We want the employees to know what the company’s offer is, what their future is, and the consequences of not agreeing to the package”- Peter Davies

“Some people have not yet realised the dire state the airline is in and that it must change to survive,” Air Malta said last night.

The airline, which is in severe financial difficulties, plans to reduce its workforce by about 500 workers and cut costs by some €30 million. Its restructuring plans are an attempt to win European Commission approval for a €52 million loan it received from the government and turn the airline around.

After several excruciating months of talks, Air Malta has now announced it would go directly to its workers to inform them about its restructuring proposals.

It said it has been negotiating with the Union of Cabin Crew and the General Workers Union in good faith and had not been able to conclude an agreement on a package of measures to support the airline’s restructuring.

Air Malta chief executive officer Peter Davies said the lack of agreement was now holding up its plans.

“So now we are going to explain the proposed restructuring agreements, including the redundancy scheme details, directly to our staff so that when they do vote through their union, they have all the information they need to take an informed decision,” he said.

The unions’ executives have agreed to take the package of measures to their members even though they have not endorsed them, he added.

The information sessions will start next week. “We want the employees to know what the company’s offer is, what their future is, and the consequences of not agreeing to the package of change measures.

“We have put a lot of effort into getting fair and reasonable payout schemes for staff so they can be properly compensated for their loss of employment – the offers we have proposed are generous and treat people fairly.”

He said that, in return, the airline had requested more efficient work practices, such as rosters that support the flight schedule.

“Everyone needs to understand that we are in the service industry. Our customers expect that and we must fly at their convenience, not ours.”

If the packages being offered were not accepted by employees, through their unions, it would have no option but to withdraw them “and the necessary headcount reduction would have to be achieved by following the statutory redundancy procedures and payments”.

The airline had earmarked August 1 as the date on which the schemes would be issued. It had then been willing to extend the talks by three months but it now had to implement the restructuring measures to turn the airline around, it said.

Air Malta’s announcement does not apply to the Engineering Union, with whom an agreement in principle has been reached and will be voted on by members soon.

On the pilots’ union, the fourth with which it is involved in talks, the company said it was aware of the need for change and discussions were moving in the right direction.