The General Workers' Union yesterday accused the government of ignoring a 2008 agreement that obliged the new operator of Malta Shipyards to keep those workers who decided to remain.
The union never approved the agreement with the Italian company Palumbo Spa, which "at no time thought of protecting the interest of the workers", it said in a letter to Finance Minister Tonio Fenech.
The union's general secretary, Tony Zarb expressed disapproval at the government's stance of not taking on the extra dockyard workers.
He referred to an agreement reached with the government in September 2008, laying down that remaining dockyard workers were to be retained by the new operator.
Mr Zarb said the GWU was also disappointed the government had ignored former dockyard apprentices, who were now unemployed.
There are 60 workers at the shipyards who did not take up the voluntary redundancy scheme or the early retirement scheme when these were offered in September 2008 as part of the privatisation process.
On Friday, the government informed the union of its intention to offer workers voluntary redundancy under the same conditions as before or alternative employment with Industrial Projects and Services Ltd, a public company that absorbed dockyard workers prior to EU membership.
Mr Zarb pointed out that the government had not laid down the minimum number of Maltese who would be employed by Palumbo and had not insisted that all the necessary health and safety arrangement would be in place.
He accused the government of ignoring suggestions to set up a workers' cooperative that had been made by, among others, former Social Policy Minister John Dalli and former University rector Fr Peter Serracino Inglott.
Mr Fenech said last week that Palumbo did not want to start operations burdened with existing collective agreements and work practices.
Workers have until Monday to decide which option to go for since the shipyard's liquidation process is expected to start by April 5. Those opting for a job guarantee with IPSL would still be able to apply for a job with the new shipyard operator but will have to resign their job with the government company if selected.
In September 2008, the government had offered lump sum settlements to the shipyard's 1,627-strong workforce worth €58 million.
The ministry said in February the shipyard was being sold for €90.6 million on a 30-year concession. After inflation was taken into account, the agreement translated into an equivalent value of €52.7 million if paid out today. The ministry said €18 million would be paid upfront followed by €72.6 million in rent over 30 years.