Air Malta personnel have complained about being “left in the dark” as to how the latest early retirement scheme, which expired on 30 March, will work in practice.
When asking the national airline, a spokesperson said:
“The process being followed was agreed with all unions representing Air Malta employees and was part of the collective agreement discussions that the airline successfully concluded in recent months. Full information is being given to eligible employees through postal mail, and individual mailings set up to assist all staff members requesting clarifications or more information”.
The scheme was open to workers for the month of March, with pilots excluded. The Malta Independent had asked Air Malta for information about the uptake of the scheme after the period was closed.
A spokesperson for the national airline skirted the question, instead saying: “The early and voluntary schemes are in accordance with the agreement reached with the respective unions. Given the nature of the matter, details of the scheme are of confidential nature.”
Sources had told the national broadcaster that workers have eligibility clearly laid out in the different agreements. Criteria for qualification were outlined in the respective sectoral agreements for each of the workers’ unions and signed by both parties.
While eligibility for early retirement schemes are subject to specific conditions, sources told TVM that workers from all unions were eligible to apply for the voluntary retirement scheme.
It was also reported that in the case of cabin crew members who qualified for early retirement, they would receive a lump-sum equivalent to two-thirds of their basic salary as of 1 January 2018.
Subsequent governments have received harsh criticism over Air Malta, after previous Nationalist Party governments allowed serious shortcomings in the airline’s finances, necessitating a state bail-out and a restructuring plan, while the public had higher hopes for the last two Labour governments to get the company back on its feet.
A series of further restructuring efforts have since been executed, such as aggressive cost-cutting measures and a change in service in order to compete with low-cost airlines like Ryan Air and Easy Jet. Air Malta had made headlines in March after concern was expressed about the use of an old plane which caused delays and maintenance issues. The plane is no longer being leased out by the company.
Tourism Minister Konrad Mizzi recently refused to say whether Air Malta will be taking out any further loans from commercial banks in 2018, citing commercially sensitive reasons.
He had been replying to questions in Parliament. Beyond debate about the national airline’s financial position, headlines were made last year over talks about a possible strategic partner which would provide a much needed capital injection.
Air Malta closed off the 2017 financial year with an increase in losses from €4 million to €13 million. Despite this, it still registered double digit growth in terms of passenger numbers between November 2017 and January 2018 when compared with the same period last year.