Agreements have been signed between Air Malta and the General Workers Union, the airline and the Association of Airline Engineers, and between the government and the GWU, the Finance Ministry said.

The agreements, which include the voluntarily and early retirement schemes, pave the way for a comprehensive re-organisation within the airline in the areas represented by both unions.

These agreements follow detailed and lengthy negotiations and are seen as critical and essential for the turnaround of the airline. They focus on new work practices; revised duties and responsibilities, including roster changes, increased efficiencies and a reduction in staff levels.

That between the government and the GWU offers the possibility for a number of workers to apply for alternative positions in the public sector. These processes will be embarked upon in the first week of January.

Finance Minister Tonio Fenech said the government believed the agreements should help in the restructuring of the airline for it to continue contributing to the country's economic expansion in a dynamic and competitive market.

The final objective of the agreements is to facilitate the required flexibility to ensure the company's viability and sustainability in view of surrounding realities.

While the process looked at guaranteeing the company's sustainability, the government was committed to ensure that it had the least negative impact on workers and their families.

Airline CEO Peter Davies said:

“This is a milestone for Air Malta. Through these agreements we have agreed with the Unions to implement a comprehensive review of the operations of the airline in their respective areas. Air Malta is fundamental for an island’s economy and I am happy to note that during the discussions I saw a genuine desire by all unions to work together to turnaround the airline.

“There is definitely lot more work to be done, but today we are happy that we have an agreement with which we can start to work together to craft a new bright future for the airline.”

The voluntary redundancy and early retirement schemes covering both unions will be launched in the next few days and will remain open for four weeks after the launch. Staff will be informed through the airline’s intranet system about the details.

The AAE and the GWU represent around 900 employees within various sections of the airline.