A meeting between the General Workers' Union and the shipyards' management to settle a dispute over foreign workers has been described as "positive" by union general secretary Tony Zarb.

The meeting was held in the presence of Director of Employment and Industrial Relations Noel Vella after the union declared an industrial dispute at the shipyards.

Last week, the GWU called on its members to stop working and the shipyards' work came to a standstill. It claimed that while Maltese workers who applied for early retirement schemes were paid their severance pay and released from duty, foreign workers employed on a temporary basis were still working there.

The management had said the union's action breached both the collective agreement and another agreement reached between both sides - it was holding the union responsible for any financial damage it may sustain. It had also accused the union of disrupting the privatisation process.

Yesterday, Mr Zarb insisted the GWU could never accept that skilled Maltese workers with years of experience and service at the 'yards were being laid off so that foreigners could work instead.

The dispute erupted when Malta Shipyards released around 148 Maltese workers from their job. Since the 'yards were still working on a number of conversion projects, the company had asked employees who applied for an early retirement scheme if they wanted to stay on to help finish the pending projects.

There was also an understanding between the union and the company that workers would be released from duty once their work would have been completed and their severance pay settled.

In line with this agreement, Malta Shipyards wrote to 148 workers releasing them from duty, retaining 733 Maltese employees and 105 temporary foreign workers. But the union complained the Maltese workers were released while the foreigners were retained to carry out the jobs previously carried out by the Maltese.

Although details of the meeting between the union and the management were not available, Mr Zarb said the meeting was positive and the two sides were closer to reaching a formal agreement.