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The latest industrial action called by the General Workers’ Union, later withdrawn following agreement with the management, has placed Malta Shipyards yet again under the spotlight.
The point at issue goes far beyond the legal correctness or otherwise of the industrial action called. This, no doubt, is a legal matter best argued among industrial lawyers. The burning point at issue, as far as public opinion and the employees involved are concerned, is the sustainability of the project and the livelihood of the one thousand three hundred workers at the yard. Disapproval also stems from industrial action being called at a time when the company finances are in dire straits and the government keeps subsidising the project.
In Dom Mintoff’s heyday a strategic decision was taken to invest and reinvest in the shipyards. There was the belief, inbred in Mintoffian ideology, that by so doing not only would jobs be guaranteed but the yards would be sustainable. After all Malta’s strategic position and the excellent foreign contacts which the Labour government had would guarantee the work! The Soviet container ships orders being a case in point.
As a result of this strategic decision millions of tax payer’s money was thrown at the yards. Any suggestions at the time that good money was being thrown down a bottomless well were derided and opponents were considered enemies of the people.
The government of the day unashamedly hailed these workers as the aristocracy of the working class.
The change in government after 1987, brought in the Fenech Adami government determined to buy industrial peace, at any cost, at the potentially explosive docks. All its decisions regarding the yards were blinded by this strategic decision.
Accordingly in spite of the dire financial situation, more public money was disbursed while in all fairness attempts were made together with the unions to successfully reduce the work force. This too proved insufficient. On the election of the Labour government in 1996, the incoming Prime Minister Alfred Sant appeared to take the financial bull by the horns by removing the workers from on the managing board which was placed firmly in the hands of the government managerial orientated appointees. More attention was to be given to marketing and winning of orders and a tighter grip of the financial situation was established. In spite of all the good will, the sustainability of the project remained dubious with losses mounting.
Little or no recognition for this effort was given to the short-lived government.
Fenech Adami’s government in 1998 yet again strategically decided to buy industrial peace by writing off 300 million in taxpayer’s money and agreeing this very year to subsidise the yards to the tune of eight million Liri. Public opinion is baffled. It was all too often assured that the fundamentals of the shipyards are finally in order. It is all the more disappointed when it realises what a return would have been given to the country if such subsidies were poured into tourism. This agreement was to be the final government help which would place the yards on an even keel.
Regrettably, it was not to be and this industrial action should kick-start government to reassessing the position and the survival chances of the project. This should be analysed with cold financial logic. Public opinion is clearly against more of its taxes being lost on the project. It has lost faith that the haemorrhage can ever be stopped. It is however also sensitive to the employee’s plight and accordingly cries out for an equitable solution to be ironed out. An agreement must be worked out whereby the employees, many of whom are highly skilled are slowly found employment in the private sector. Public opinion does not favour the déjà vu seconding of these employees to other government agencies or departments, as this will have no healing effect on government finances. The way forward is to incentivise the private sector to take on this highly skilled work force.
This calls for a creative mind and leadership. Ignoring this reality will only mean a further drain on the public purse. This is totally unacceptable especially as government is currently asking the citizen to make sacrifices in order to overcome a difficult situation. Minister Austin Gatt was right to threaten closure unless industrial action was stopped. Indeed this had the desired effect. It is now time however for the Gonzi government to scale down the yard over a period of time, in consultation with the unions and strictly simultaneously find alternative employment for the employees in the private sector.
Needless to say the union will oppose, the government will not want to rock the boat, the situation will worsen and more taxpayers’ money will be drained in the project. Let the union appreciate fully that public opinion is not on its side.
Taxpayers cry out enough is enough. The proven un-sustainability of the project leaves government and the unions with little choice. There is need for a dose of real politik.
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