GO plc reiterated this evening that if its current early retirement scheme did not achieve the necessary reduction of workers, particularly in fixed line operations, it would have to reduce its headcount by other means, including redundancies.
The company was reacting to a statement by three trade unions which said they had registered an industrial dispute over the scheme.
The Union of Maltacom Graduates (UGM0) the Union Haddiema Maghqudin (UHM) and the General Workers' Union (GWU) complained that employees had received a letter from the company's CEO, David Kay, informing them of the scheme and warning them that if the scheme was not taken up by as many workers as expected, the company would have no other option but to resort to dismissals.
The unions said that they could not understand how the company wanted to reduce workers when it was farming out work which could easily be done by its own employees. They said that the company increased profits last year in spite of competition.
The management was also buying out another company in the telephony sector,, increasing its employees.
The unions appealed to workers to practice solidarity and to be on the lookout for any directives that might be issued.
GO REACTION
GO said that it had been working closely with all the unions by providing the necessary information with respect to the right-sizing and restructuring process throughout the organisation for those classifications covered within the collective agreements. In addition, the GWU had agreed with the terms of the current Voluntary Retirement Scheme and both the union and the company had issued a joint communication on the matter in October 2008.
GO said its objective was to finalise the restructuring process by reducing its headcount to 1,000 employees – as per the communication issued to the company’s employees over the past weeks. The main focus of the rightsizing was in the fixed line business, and the employees had been informed about the areas within the fixed line business that require rightsizing.
"GO’s management is mandated by the Board of Directors to achieve this reduction in the short term. Ideally and in the interests of all stakeholders, the reduction is achieved by means of the current Voluntary Retirement Scheme, which comes to an end on 31 May.
"As stated in the employees’ communication, if the target is not achieved through this last Voluntary Retirement Scheme, the decrease in headcount will be met via other measures, including redundancies, in accordance with all relevant legislation and within the parameters of the current collective agreement."
GO said the current Voluntary Retirement Scheme was the last it would offer and it was not considering changing or extending it.
"The current Voluntary Retirement Scheme was launched in July 2008 and hence this long time period has provided ample time to allow employees who are interested in the scheme to obtain assistance on pensions, alternative employment and re-training. The scheme is one of the most generous launched locally, with payouts reaching up to €60,000."
GO pointed out that as its financial results for last year showed, it made a loss last year, and the reduction in headcount in the fixed line business was crucial for the long-term sustainability of its business.
"Increased competition and the effects of the worldwide economic slowdown have driven GO to become a leaner organisation with significantly increased efficiencies in order to ensure that the company has a successful future, and continues leading the market and offer the best value services to customers."