Parliament votes to amend GWU headquarters lease agreement as Opposition votes against

Parliament has approved a resolution that amends the lease agreement for the headquarters of the General Workers’ Union in Valletta.

With 41 votes in favour and 33 against, the resolution lifts a restriction that prevented the union from subletting parts of the Workers Memorial Building to commercial entities that do not belong to it.

The Opposition stuck to its guns and voted against the resolution despite the union appealing for a different outcome earlier in the day.

The resolution was presented by Lands Minister Stefan Zrinzo Azzopardi after the Court ruled earlier this year that the GWU breached the conditions of its government lease agreement when it sublet parts of its premises to commercial entities. The Court ordered the two commercial entities – Arms Ltd and Sciacca Grill – to stop operations but it also ruled against the union’s eviction from the building.

The court case had been instituted by the Nationalist Party, then led by Simon Busuttil, in 2017 after the National Audit Office flagged the contractual breaches.

The building had been leased to the union in 1957 to be used as its headquarters and for its printing press. However, in 1997, the agreement had been amended to allow the union to sublet parts of the building to entities in which it held at least a 51% stake.

The resolution lifts the shareholding restriction thus allowing the GWU to sublet parts of the premises to commercial entities. As compensation for the removal of the restriction and to make up for penalties incurred over the years the contract was breached, the union will be paying almost €2 million.

The Opposition had voted against the resolution at committee stage to remain consistent with its past position. It maintained that stand when the vote was taken in plenary on Monday.

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