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Matthew Vella
The government and the Malta Maritime Authority have refused to release details on the lucrative ‘pensions and contingency fund’ for port workers, whose contributions are financed by the private sector.
Amounting to some Lm10 million, port workers’ pensions are also guaranteed by the state, but the private sector contributes a 65c levy for each tonne of cargo that gets loaded or unloaded at Magazine Wharf.
MMA chairman Marc Bonello said it was “neither timely nor prudent” for the negotiating team appointed by the Competitiveness and Communications Minister Censu Galea to “engage in a media discussion at such a delicate stage.”
Government is presently conducting a port reform with the scope of addressing archaic labour practices and simplify tariff systems and charges. The exorbitant charges paid to the dynasty of port workers, which own a monopoly of the service on the island, are among the changes many businessmen and importers want to see in the coming reforms.
What is ironic is that the workers, who are in fact “self-employed”, are by law paid a national insurance and pension fund contribution by anybody who has to employ their services.
The charges include preposterous contributions for port workers’ national insurance and pension schemes, which are being funded by the private sector which is obliged to employ the port workers irrespectively of whether they are needed or not.
Port workers are paid 7 per cent in national insurance on the total value of the discharging fee and a 65c levy on every tonne for the discharging of maize, wheat, barley, soya or alfalfa for the local market.
Additionally, those employing the services of the port workers, who are technically “self-employed”, pay an administration charge of 6 per cent on the total value of the discharging fee.
What’s more: it is the government’s Malta Maritime Authority that actually collects the pension fund “contribution” it redistributes to workers who are self-employed.
Chairman Marc Bonello said the negotiating team is currently carrying out discussions with all stakeholders on all aspects of port reform. “It is hoped that these discussions will bear the desired results… Government will in due time be informing the media on the outcome of these discussions.”
A lot of ‘hands’ tend to be involved in the process of port handling in Malta: there are foremen for both on board ships and those on the ground, tally clerks physically checking the freight being loaded off the vessel when today most freight arrives in containers that are never checked. And of course, port workers.
A fixed number of eight men have to be employed for discharging, and four men for loading. They get paid an overtime allowance of Lm5 per shift if they work from midnight to 8.00am including a 6 per administrative charge, and Lm10 per shift if the work is carried out on Sundays and public holidays.
Even if the vessel does not enter port and their service is cancelled, port workers are still paid Lm2 per hour.
On Tuesday, a spokesperson Minister Censu Galea told sister newspaper that no information is to be divulged on the ongoing discussions, without addressing whether the absurd pension and national insurance contributions by the private sector were going to be stopped.
Costs are considerable for employing the port workers, whose licences are inherited by their children from generation to the other. Several agents refuse to pay for the service when it is not even made use of. Others claim they have used ‘other methods’ in order to have as many as they require on demand.
Port reform is a big deal for the 300 or so workers who are entering into negotiations with the government on the issue. All of them General Workers Union members, they have already clashed with the union since taking on the services of the GWU’s former legal counsel George Abela, kicked out of the union after openly declaring he would no longer file court cases he did not believe in.
Along with Abela, representing the foremen is the PN’s president of the general council Victor Scerri, who will be meeting members of his same government to discuss the reforms.
mvella@mediatoday.com.mt
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