Air Malta layoffs to have 'least social impact possible', ministry on GWU ultimatum

Updated at 4:40pm with finance ministry statement.

The finance ministry has reiterated it intends to offer a number of solutions as to how each decision on Air Malta employees can be taken "with the least social impact possible".

Reacting to an ultimatum by the General Workers Union to declare whether it will absorb redundant Air Malta employees in the public sector, the ministry said its solutions would be "within the context of the restructuring plan" which is yet to be approved by the European Commission.

The ministry said its aim was to ensure that Air Malta acquires a solid foundation with which to service the Maltese people and industry. But it made no reference to whether government intends to make a statement by 30 June, the deadline by which the GWU is demanding government's "guarantee" for the absorption of Air Malta workers.

The General Workers Union today announced an ultimatum to government, demanding that it declares by 30 June that all Air Malta employees who express the wish to remain in employment, are absorbed within the public sector.

Secretary-General Tony Zarb said the GWU would be registering an industrial dispute if the declaration is not forthcoming. “We don’t want to reach the stage of an industrial action, but we’re ready to do what it takes to protect Air Malta employees."

He did not specify whether the industrial dispute, or any subsequent action, would be announced the moment the deadline strikes, insisting that the union was not discounting any course of action. Zarb said that over 500 employees attending a GWU meeting yesterday voted unanimously for this course of action.

Some 600 workers have to be removed from Air Malta’s payroll if it is to survive under European Commission rules governing a €50 million government loan to the loss-making airline. Zarb said the way this figure was determined is "arbitrary".

Tony Zarb has said the government had always found a way to absorb redundant workers during past restructuring processes. "I don't know why Air Malta reform should be any different."

Reports in the media quoted European Commission officials who said that Air Malta’s restructuring will not make it possible for the airline to retain its workforce, while also casting doubt over whether government will be able to absorb these workers.

Tony Zarb has said that it was only in recent days that the government had changed its tune over the fate of Air Malta’s surplus workers, and that the understanding was that they would be absorbed by government. He said recent statements by parliamentary secretary Mario de Marco, the Prime Minister and Air Malta meant they had changed tack and were now suggesting that Air Malta’s workers would have to be made redundant.

He also made an appeal to all unions to present a united front on the issue in order to best protect the interests of workers. He added that while the GWU has issued invitations to other unions to being dialogue in this regard, these have so far gone unanswered.

Labour spokesperson for tourism Gavin Gulia has appealed for continued negotiations and talks in a bid to avert the GWU’s ultimatum. “Nobody enjoys a situation with industrial unrest,” Gulia said, expressing hopes that the situation does not devolve to the point of industrial action over Air Malta. He was speaking in comments to MaltaToday

Gulia said the union was right to point out its grievances, after senior Air Malta management with high salaries were unceremoniously kicked out and new management installed "with triple salaries".

The Malta Hotels and Restaurants Association president George Micallef did not exclude calling an emergency meeting of the Malta Council for Economic Development (MCESD) to avert a GWU strike at Air Malta.

Micallef said that industrial action at Air Malta at this sensitive time was "preoccupying" and that this could jeopardise the entire tourism sector and the airline not to also mention the airline.

"We are being faced with enormous challenges to secure occupancy and availability of seats, and industrial action will certainly cause tremendous damage to the sector," Micallef said. "It is imperative that whatever the cause, government and unions ensure dialogue and solutions."

"We have waited for Air Malta restructuring for long and we are still faced with a lot of unknowns for the winter, as routes have not even been announced," he said.

The Chamber of SMEs (GRTU) vice-president Philip Fenech also expressed concern at the GWU stance. "Without interfering in how the GWU defends its members' interests, industrial action at Air Malta would be too drastic at this sensitive time, and should be avoided."

Additional reporting by Karl Stagno-Navarra.