Workers still on the shipyard's books have until March 29 to apply for a lump sum settlement or accept alternative employment in the public sector, the Finance Ministry announced yesterday.
Giving details of negotiations with the General Workers' Union, Tonio Fenech said the government made the offer after the new operator of the Cospicua ship repair facility, Palumbo, insisted it did not want to start operations laden with existing collective agreements and work practices.
Malta Shipyards Limited currently employs 60 workers 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.
"The operator wanted a clean slate and although in principle the GWU wanted the 60 employees to be transferred to Palumbo under the same working conditions, they responsibly understood that insisting on this condition would jeopardise the whole process," Mr Fenech said yesterday.
The government informed the GWU on Friday of its intention to offer workers voluntary redundancy under the same conditions as before or alternative employment with Industrial Projects and Services Ltd.
IPSL is a public company that had absorbed workers from the restructuring of Malta Drydocks and Malta Shipbuilding prior to EU membership. These workers perform services in the public sector such as embellishment works for local councils. During a meeting between the GWU and the Finance Ministry yesterday, the union informed the government that most of the workers had agreed with the proposal.
Workers have until March 29 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.
The Italian company has indicated it will initially employ between 200 and 250 workers. It is obliged to give all former shipyard workers the right to be interviewed for a job but has no obligation to employ them all or at all. Mr Fenech said he expected the parliamentary motion to approve the transfer agreement with Palumbo to be debated after the Easter recess and the company to formally start operations by May.
In September 2008, the government had offered lump sum settlements to the shipyard's 1,627-strong workforce at a cost to public coffers of €58 million.
The ministry said in February that 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.