Labour, AD fire broadsides at government over Air Malta

AD says Air Malta workers must be absorbed in the public sector if productive labour exists, Labour says Lawrence Gonzi must assume responsiblity.

28 June 2011, 12:00am
by Nestor Laiviera

2 min read

Labour and Alternattiva Demokratika upped the criticism of the Nationalist government over its handling of Air Malta and the planned shedding of 511 workers as part of the airline's restructuring process to save the airline from total collapse.

AD said the reduction of workers should be done in a way that balances financial sustainability, workers rights' and the strategic importance of the airline. AD chairperson said the airline had been "used as a Father Christmas by successive Nationalist and Labour governments through the dishing out of jobs for votes.”

He said that even when Air Malta had a positive balance sheet, “its profit was mostly a result of a monopolistic situation and price fixing.”

Briguglio said that given the airline’s track record, its present state was “inevitable" referring to instances of mismanagement which dented the airline’s financial stability such as the purchase of RJ-Avroliners and the investment in Azzurra Air.

Briguglio also attributed the airline’s dismal state to the appointment of directors based on party affiliation "rather than competence", the hike in fuel prices, and the encouragement of low cost airlines without proper consideration of their impacts.” “The way the Maltese government has funded routes mostly serviced by low-cost carriers has also been detrimental to Air Malta, even though this brought in an influx of tourists to Malta,” Briguglio said.

Briguglio called on government to accept political responsibility for the present state of affairs, and called for workers to be kept informed of developments and also absorbed by the public sector "if vacancies exist in productive employment... Alternatively, they should be employed in the private sector. Failing that, early retirement schemes should be used”.

In another statement, Labour deputy leader Anglu Farrugia said Prime Minister Lawrence Gonzi could not give the impression that he was not directly involved in Air Malta's problems. "Air Malta entered stroemy seas under his leadership even if he is trying to put the blame on his predecessor. He was a veteran member of the cabinet at the time. It is clear to Maltese families that the blame lies with him."

Farrugia said Gonzi had guaranteed employment to Air Malta workers in the same way he had done with shipyards and GO plc workers, but all he had to speak for his promises was a €2 million consultancy report that suggested the redundancies. "In the meantime, the Prime Minister pockets a €500 salary raise every week," Farrugia said.

More from Nestor Laiviera

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@john azzopardi great contribution to the debate. your comments are like a broken pencil POINTLESS

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Labour and Ad, you know, you are in the government position, thus you cannot have policy as it SIMPLY DOES NOT MATTER as you are in government. If you get there one day, then you make your own rules. Of couse AD will need over 150 years to get there.

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@ray "I wonder how many of these 'imsieken' employees were politically appointed." Which imsieken are you refering to, pilots or cabin crew or ground crew. Don't you realise they all have families and the fault regarding political appointments (not managerial) lies with the politicians who put them there because they could not provide alternate jobs. Look in the streets while you go to work or back home and notice the hundreds of gardeners that are weeding or planting flowers in roundabouts and center strips while gonzi praises himself about the jobs he has created the same thing with the hundreds of security guards you find in all governmental offices, ministries and mater dei. During labour admittedly there were political appointments but labour left Airmalta in good shape not the same can be said of 20 years of right wing regime.

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@sneeks Wipe your nose .............

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@briffy " I was taught that when I didn't have anything of substance to say, I should zip up my mouth." . Apparently you didn't really learn the lesson or you have a loose zip ...... like gonZIPn.

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@ ray the reduction in staff is due to the fact that it would appear that the E and Y report has indicated that the full time compliment would be equivalent to 8 aircraft ie a reduction of 4 aircraft and then that amount would be augmented in the summer season by additional workers. so you see there is a big difference between those who read the headlines and those who read the whole article.Although there are extra workers it is no way near 511. Apart from that there are various jobs that are outsourced which could be in sourced to keep current employees in employment but would mean cancelling external contracts. On the other hand consider that most people are paid less than the same duties abroad so the technical workers are value for money. Now if you want to concentrate on revenue generation you would find that without kicking out anyone the company couls turn a profit if only it could improve the seat load factor which has been around 70%. if the airline had approx 1million seats unsold which could be sold at approx 80 euros pert seat presto. The fact that seats are empty and the company is loosing money means that revenue management has failed for one reason or another so maybe it is not exactly the workers fault.

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@alan smith I don't really understand why you are making it seem like I am against Airmalta, when, in fact, I am not. What I said in my comment -and you seem to agree - is that I do not agree with tax payers money going to Air Malta. If Airmalta is downsizing its fleet by 2 aircraft and less flights, it obviously means that it would need less employees. But do you honestly believe that the 511 workers who will have to be made redundant is due to this fact? Let me guess that economics is your forte. Answer me this simple question. Which is better? An efficient Airmalta (with the redundant staff working in other companies -like the ex-dockyard workers did) or leaving the company remain as it is? Regarding other points you make. Of course I am not happy with the money given to the public transport, Enemalta or MP salary rises. I find them all quite shocking. But, for the life of me, I cannot see myself thinking: Well Enemalta is f****d so might as well leave Airmalta as it is. In fact, for me, one of the biggest mistake that has ever been made was privatizing MIA without giving some special concessions to Airmalta when the signing of the contract took place. The last point I wanted to make is that the 'childish thinking' remark I mentioned was about the stewards and dreams and other pointless remarks the other commentator wrote.

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Our politicians has brought Air Malta to this predicament. Shame on them! All those freebies, jobs for the boys, jobs for the constituency etc. Shame on them! http://mazzun.wordpress.com/2011/06/28/l-air-malta-tezor-nazzjonali-li-serquh-il-politikanti-taghna/

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@ray you say that you got an education. Well good for you but i am guess economics, or management was never your forte. If a company downscales and operates less aircraft, services less flights guess what you need less employees. now let us move on to taxes. Well you seem not to agree with tax payers money going to Air Malta. Fair enough i agree. But are you happy with the millions given to public transport both the old set up and the new? Are you happy with enemalta, arte you happy with the 58 million given to low cost carriers, the hangar and preferential treatment given to Lufhansa and SRT? Ok then i would assume you would be very happy with the fact that the payroll ot air malta is around 50 million and out of that around 15 million annually is paid into income tax the rest is spent in malta by the maltese employees. Millions paid to MIA to enemalta for fuel and millions for catering and other services. what about the million tourist brought over by air malta if they leave 500 euros each that is an injection of 500 million every fricken year. How about that for childish thinking

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@king kenny. Funny you should resort to attacking me for saying my opinion. But than again that is the way your comments are most of the time. You attack everyone who dares to not think like you do. Now, judging by your tone I guess you are the one who was employed by someone other than your own capabilities. I got education and a job with my OWN ability and today me, my wife and kids have a good standard of living. I guess that is hard for you to swallow hux? Seeing someone a tiny bit successful fills you with so much rage and jealousy that you cannot accept it and try to come to weird conclusions about pulling girls and stuff like that. Childish thinking at its worst. Regarding my comment and your stupid reply, yes, I am frustrated that some of my taxes are going to Airmalta and it is utterly irresponsible that this government did not take the necessary steps much earlier. Having said that, do you want Airmalta to remain as it is, and the government to continue subsidizing the airline with your money? No one stands to gain from Air Malta’s demise and that is why the restructuring process should have been made some 10 years ago.

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prosit human torch.

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GONZIPN...is with one leg in the coffin...and the other half-way through...soon it will be buried and forgotten!

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@Sneekes You are obviously trying to justify Gonzi. Before the last election Gonzi knew perfectly well the financial mess that Air Malta was in. Yet to win the election he deemed it fit to send a personalised letter to Air Malta staff guaranteeing their employment when he knew perfectly well that could not keep this promise. Next s time round Gonzi would have difficulty sending any more letters because no one would believe him. You say things are looking serious. How? Because they are sacking a third of the workforce (after Gonzi's guarantee). Did we need to bring in the foreigners to do this? The €500 weekly Gonzi gave himself and his ministers have everything to do. It shows the insensitivity of Dr Gonzi. While he broke another electoral promise to reduce income tax in the budget following the election, he raised the W & E bills to record high While the people were suffering he and his minister becoae €500 richer weekly. Worse of all he did this behind the people's back. You may not have confidence in the PL but many and many people who had confidence in the PN and voted for it have completely lost this confidence and would not be voting the PN in the coming election.

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@ ray You are very quick to fire off accusations right, left and centre – and you go out of your way to show us the bitterness that is eating you up when you claim that the employees deserve “it”. You know what ray, I think deep down you are frustrated because you always wanted to join Air Malta (maybe fantasising that wearing a steward’s uniform would help you pull a girl now and then) but you never made the grade, so now it’s “vomiting” time…… You claim you are commenting only as a tax-payer – but that is not true. As a tax-payer you should be asking why Air Malta has been allowed to go down the drain in this shameful manner – this is indeed a classic text-book case of “how to destroy a healthy company”. Have you ever asked yourself who stands to gain from Air Malta’s demise? Got it…or do you need me to spell it out to you??

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I wonder how many of these 'imsieken' employees were politically appointed. Well, unfortunately -for them- the chickens have come home to roost. Serves them right for not getting a job in the usual 'apply and go for an interview' way. (I am not referring to the ones who were employed legitimately). Now, if Ernst and Young are saying that, for example, 190 loaders are extra, can someone explain what have they done up to now? Snooze all day? Everyone is getting so hot under the collar without realizing the fact that an efficient Air Malta benefits everyone. What Air Malta is doing now is what BA, Alitalia, Air France, Lufthansa, Iberia, and all the major airlines did in the last few years. It's a shame that with the 'hbieb ta hbieb' syndrome that seems to be common on this blessed island, a foreign CEO had to be appointed to get the ball rolling. Now, Before some die-hard labourite replies with some usual innuendo or start calling me blue eyed boy or 'npappiha ma Gonzi' etc etc, I would like to point out that I am certainly not defending the government or anyone. I am just stating my views as a tax payer.

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Government did not need E & Y at 2 million euros. There are government agencies that could have done this job perfectly well without much ado. for example the internal audit within the OPM that perfroms all sorts of investigations including at the EUPA and also on ALL EU funds and other internal matters There is also such a thing as the FMMU which T Fenech should have known about because its within his own Ministry!! But as usual let's all lick the foreign companies and dish out our money!!

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GONEZI, inti wegħedt lill-ħaddiema tal-Air MAlta li xogħolhom huwa fiż-żgur meta inti stess issa għedt li kont ilek 7 snin taf li hemm problemi kbar. Tista' tkun ipokrita iktar minn hekk? Min jigdeb kulħadd jaf x'jissejjah. GIDDIEB

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Fejna il GARANZIJA li taghjthom Dr Lawrence Gonzi qabel l-elezzjoni li jekk iridu jibqaw jahdmu ma l-Air Malta JIVVOTAW lil partit Nazzjonalista il garanzija HIJA ghalik ghax int XROBT dawk is 600 ewro ZIEDA fil gimgha IMMISKOM TISTHU wara li lil POPLU SALLABTUH tigu TIEHDU dik iz zieda Jien ma nafx kif il presitend Dr Gorg Abela IFFIRMALKOM biex tkunu tistaw tiehdu dik iz zieda kollha jien nahseb il presitend qied hEMM biex JIFFAXNA U JIEKOL U JIGRI L-Hemm u l-Hawn ghax kieku ghandu KUXJENZA SOCJALI QATT!!!! ma missu IFFRMALKOM ghax kien ghidilkom INTHOM lin nies TRIDUHOM jaghmlu is SAGRIFFICJI u imbad INTHOM TIGU TIEHDU ZIEDA TA BARRA MIN HAWN

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It's a pity that some politicians open their mouths just to justify their presence in the political scene. It were better for them to keep mum rather than risk saying silly things and make themselves a laughing stock. I was taught that when I didn't have anything of substance to say, I should zip up my mouth.

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Anglu Farrugia's comments are poorly thought - Gonzi was far from a veteran member of the cabinet when his predecessor was in place. I believe he was first elected to parliament in 1996, just 8 yrs before he assumed leadership. Secondly, E & Y were roped in to make a detailed assessment of the company's current situation as external, independent consultants. And yes, such detailed assessments may cost up to € 2 million. What would Dr. Farrugia have done otherwise? Thirdly, the €500 salary raise has nothing to do with this subject. Things are looking very serious vis-a-vis Air Malta, however I have no confidence in the leadership which is vying to replace the current government - especially where economic policies are concerned.

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Say what they say the troubles with Air Malta all started with the purchase of the RJ's and the investment in Azzurrra Air. These two wrong strategic decisions brought Air Malta to its knees. Before these wrong decisions were made Air Malta had accumulated a huge financial muscle (through past profits being reinvested in Air Malta) but the HUGE losses sustained from these two investments completely wiped off this buffer (financial muscle) with the result that Air Malta could not weather any further storms which came afterwards. Now everyone knows who took these two decisions. The PN can blame the current economic climate to excuse the bankruptcy of Air Malta but the crux of the matter is that since 1987 (save 1996-1998) to this present day all chairmen and directors chosen to stand on the board of Air Malta where hand picked by the PN. So who is to blame for this disaster?