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Government will be forking out almost Lm0.5 million in termination benefits to Interprint employees, around Lm20,000 of which will go to the General Workers’ Union President Salv Sammut, MaltaToday has learnt. Around another Lm0.5 million are owed to banks.
Sammut was on the government’s payroll but was seconded with the union as president. Despite the 35 workers’ termination benefits upon their redundancy, the union is also insisting with the government on giving them “alternative employment”.
Last week’s Il-GensIllum reported that government would have to fork out around Lm1 million in termination benefits and bank dues before closing down the printing press.
A spokesman for Investments Minister Austin Gatt confirmed to MaltaToday that government is expecting to pay Lm444,822 in terminal benefits.
“The government will be honouring its obligations in the collective agreement with Interprint employees paying them termination benefits that are several times more generous than those established by law,” the spokesman said. In fact, employees will receive five weeks pay for every year of service rendered at the company.
The spokesman said: “It should be noted that according to law in the case of bankruptcy, terminal benefits are payable to employees according to standing liquidation procedures from the realisable assets of the company. Without the shareholder’s – by which is meant the tax-payer of course – direct funding of these benefits, these generous benefits could not be paid.”
The spokesman insisted that none of the Interprint workers will be re-employed with other government departments or companies.
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