President Emeritus George Abela will act as “a catalyst” between Air Malta’s unions as government talks with a strategic partner continue, The Sunday Times of Malta has learnt.
Dr Abela accepted the Prime Minister’s invitation to co-chair a committee that will bring the airline’s four unions together to discuss a way forward in the wake of privatisation talks.
The committee will be co-chaired by Air Malta chairwoman Maria Micallef.
This marks a return for Dr Abela at Air Malta 12 years after having been involved in a similar role during the first restructuring exercise undertaken in 2004.
Tourism Minister Edward Zammit Lewis who is overseeing the process yesterday confirmed Dr Abela’s participation. He described him as “a catalyst” to ensure the interests of Air Malta workers were safeguarded while making sure the airline was in a position to get the best possible deal.
It is understood the government is negotiating with Etihad Airways of the United Arab Emirates for the part-sale of its shareholding in Air Malta.
Committee tasked with negotiating agreements
The government has so far not confirmed the name of the strategic partner but Etihad Airways is expected to acquire substantial equity leaving the government as the majority shareholder.
The search for a strategic partner was necessitated by the airline’s failure to achieve the targets of a restructuring plan agreed with the EU in 2010 that expires in March.
Dr Zammit Lewis has said not all Air Malta workers would retain their job with the airline after the workforce was halved six years ago.
He is best positioned to ensure the future sustainability of our national airline
The minister said the committee headed by Dr Abela was tasked with negotiating all expired collective agreements and conditions of work to ensure the airline would be in a better position for an eventual strategic partner to move in.
The committee will bring together the General Workers’ Union and unions representing pilots, cabin crew and engineers. The first meeting is expected in the coming days.
“George Abela has all the credentials, competence and experience required to lead this committee at a key stage of the process currently under way. He is best positioned to ensure the future sustainability of our national airline and in the best interest of all the workers,” Dr Zammit Lewis said.
Abela’s Air Malta mediation
George Abela was roped in by Air Malta’s four unions in April 2004 to act as their representative in restructuring talks initiated by then transport minister Austin Gatt.
Dr Abela managed to get the unions to present joint counter proposals that paved the way for an agreement that included a government injection of €70 million to recapitalise the airline.
The deal was sealed just before Malta officially joined the EU on May 1, escaping the European Commission’s scrutiny.
In November 2010, Dr Abela, this time as President, adopted a limited role as Air Malta faced bankruptcy and the government had to seek EU approval for a loan and multimillion euro capital injection.
Dr Abela had chaired the first meeting between then finance minister Tonio Fenech and Opposition leader Joseph Muscat that paved the way for consensus.
kurt.sansone@timesofmalta.com