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The Sea Malta sale failure, after sixteen months of negotiations, is the final chapter in a turbulent and quasi-farcical privatization process.
What should have started as a relatively simple and straight forward commercial deal has been characterized by public exchanges between the former chairperson and the minister, followed by the GWU giving its conditions for agreement to be reached, namely that a majority of the workers approve the conditions of employment being set by the new owners.
Once the majority of the workers were against the agreement being proposed, the union announced its unwillingness to reach agreement and the sale was called off.
Government immediately announced its intention to dissolve and to wind up the company.
The only winners in this saga are the Grimaldi group who showing its full faith in the Malta project wisely decided to go ahead doubling its investment, with the formation of a new company.
There are a number of losers, first and foremost is the union who in similar circumstances during the enforced closure of the Phoenicia hotel, finds itself in the terrible situation of being also partly responsible for a hundred of its members losing their jobs.
The breakdown in talks and the calling off of the sale has left the union literally playing into the hands of the Grimaldi group who now find themselves in the enviable position of inheriting a sea lane without any of the shackles.
With the formation of a new company they are free to dictate the conditions they consider necessary so as to compete in a highly competitive market.
The negotiating process has shown much poor judgment on the part of the union.
Similarly the government is surely partly responsible for having not weighed the possibility of a stubborn union.
The union should have been aware of the Grimaldi brand, one that is so visible and ever present in all the top ports in the Mediterranean.
One need not be a rocket scientist to appreciate the added value that the Grimaldi name would be giving to Malta sea-lane communications with the outside world. Apart from this added value there was also the important factor of its members working for a strong company committed to sea-lane traffic.
Their commitment to honour sea-lane links with Malta’s traditional sea port trading partners and other ports already surfaced by their vessels, fortified even when announcing the formation of a new company, is evidence of their willingness to develop our sea communications.
Indeed the Grimaldi group is focusing on transporting much of European container traffic onto the sea lanes and by so doing easing the traffic congestion on the major motorways in Europe. Their presence in Malta could only help nurture further the Malta brand. Appreciating this is all about giving importance to the big picture, something that the union is falling to do.
On the other hand, as things have developed Grimaldi are not bound by any public service obligation.
The union should reflect carefully on its proper role which it imagines is limited to protecting its members. Its rhetoric of late leaves much to be desired. Its approach must take into consideration that the natural process of privatisation cannot be stopped and that if the present administration is decided on closing so called ‘unviable’ companies the union has to be realistic and flexible.
Which takes us to the MCESD. Lessons should be learnt and a common approach initiated. It will be very difficult,
It’s time to really make something worth-while of this meeting of the social partners. Each party cannot simply carry on looking after defending its own patch; the problem must be looked at and approached holistically.
Government on the other hand needs to focus on the shackles inhibiting progress, the red tape, the unnecessary regulations and more importantly the high taxation regime.
It cannot delay further tackling the health system which is unsustainable and is likely to turn into a haemorrhage once the new hospital opens its doors nor the time bomb surrounding our pension’s regime. This all costs votes but a failure to tackle these issues will also put an end to any prospects of growth.
The employers simply must come to terms with their social obligations in the form of tax compliance. The unions must also appreciate that the times are a changing and our economy is competing with the emerging markets where flexibility of labour and working hours is the norm, the market place little regulated and as a result their products are very competitive. There are lessons to be learnt for all sides.
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