Doctors have given a final two-week ultimatum to the government to resolve a dispute over a new collective agreement and the privatisation of three State hospitals or else face industrial action.

Medical Association of Malta general secretary Martin Balzan made the warning yesterday when asked about the state of play of the dispute that has been brewing for months.

The issue revolves around a controversial agreement signed in March last year under which Vitals Global Healthcare, part of the Singapore-based Oxley Group, was given a 30-year lease to run the Gozo, Karin Grech and St Luke’s hospitals.

Last month, the doctors’ union registered an industrial dispute and gave notice of possible action as from March 20, saying attempts to seek certain guarantees over its members’ conditions of work had failed.

However, industrial action was put on hold in the wake of a fresh attempt to resolve the matter through direct talks with Health Minister Chris Fearne.

Progress has been registered, but the issue will soon reach make-or-break point. We are giving two more weeks. However, I remain optimistic that a solution may be found

Contacted yesterday, Dr Balzan said progress had been registered but he warned that time was running out for the government to commit itself in writing on key guarantees.

“Though in principle an agreement has been reached, the government has not put pen to paper yet and, therefore, the dispute has not been resolved,” he said.

Apart from guarantees that the collective agreement would be adhered to across the board, he said doctors wanted the Health Minister to declare in writing what he said recently in public that no further healthcare privatisation was in the pipeline.

“Progress has been registered, but the issue will soon reach a make-or-break point. We are giving two more weeks. However, I remain optimistic that a solution may be found,” Dr Balzan said.

In a circular letter sent to doctors, the MAM had accused the government of using Vitals, which the union described as a company “with no healthcare experience”, to bypass the collective agreement.

This accusation was also made in the wake of unofficial reports that the private operator was recruiting staff members and giving them better conditions though doing the same job.

The dispute is also about a new collective agreement to replace the one that expired at the end of last year.

On his part, Mr Fearne has been hailing the privatisation deal, saying it would result in the injection of €220 million to revamp facilities, increase beds and attract medical tourism.