Ministry sources told this paper that while some of the talks were “confrontational” others were not. The positions however are so far still wide apart, to the extent, the sources said, that some unions went to the talks convinced that government was bluffing when it spoke on the dire situation of the airline, while one particular union, unidentified by the sources, actually asked for a wage increase!

The discussions with the General Workers Union, in the context of the union membership in Air Malta, are considered to be the most important.

The union yesterday sent government its counterproposals and held a press conference attended by the section leaders and the union’s section secretary Emanuel Zammit.

Mr Zammit insisted that the basis of all negotiations must be a government commitment to retain all employees.

He added that the brunt of the restructuring must not be borne by the low ranks but must be spread among all sections of the airline.

The benefits that government wants to curb are the result of so many battles by the union over the past 30 years: they would put back the situation to before the airline was established.

Mr Zammit denied that the government proposals address all that is wasting money for the airline: consultancies have not been cut nor has there been any curb on free flights.

Mr Zammit confirmed that the airline’s 37 proposals are those as reported by Tuesday’s Orizzont:

· Wage freeze for six years, apart from Cost of Living Increase from 1 June 2004 to 31 May 2010;

· No arrears;

· Working week of 37.5 hours becomes 40 hour week;

· No increments from 1 June 2004 to 31 May 2010;

· Removal of day-duty allowance;

· Removal of degree/diploma allowance;

· Removal of disturbance allowance except to duty managers and superintendents;

· Removal of Gozo allowance;

· Removal of cash allowance;

· Removal of long service allowance;

· Overtime on a fixed rate, even on Sundays and feasts;

· Removal of hair dressing facilities;

· Removal of phone access to executives;

· Travel allowance for work reasons to be limited to Lm30;

· Removal of duty run/pick up;

· Annual leave to be taken by hours;

· Minimum overtime to be cut from four hours to two;

· Rosters may be changed;

· Shifts can be split shifts or side shifts;

· Side shifts may be changed at eight hours notice;

· Removal of fixed shift complement;

· Flexibility in cargo handling and import cargo;

· GEMS mechanic to be on day duty, not on shift;

· GPU Operator to provide service to ramp equipment in lieu of GEMS mechanic;

· GPU and ASU maintenance to be transferred from GSE to GEMS workshop;

· Removal of the six hour overtime for work between midnight and 6am;

· Loading teams to be cut from seven to five persons;

· Flexibility in coach driving;

· MAC handling to be reduced to two persons;

· Quality controller to be removed;

· Assistant supervisor on transit baggage to be removed;

· Removal of Lm1 weekly allowance to ramp staff and to the engineering skilled lab;

· Cargo ferrying to be done by one person only;

· New roster to have supplementary roster with seven days; notice;

· Changes in supplementary side shifts to be changed on eight hours notice;

· Seasonal shifts to be changed according to circumstances; and

· Fuel bowsers to be handled by members of Ground Handling rather than by Leading Tradesmen.

Ministry reply

The ministry reply to Mr Zammit’s press conference was couched in conciliatory terms, seeking to highlight points of convergence, in line with the ministry’s efforts to seek a rapprochement with the unions, rather than a confrontation.

The ministry agrees with Mr Zammit that all must do their utmost to reach an agreement on all the measures thought necessary to enable the airline to return to profitability in its core business: passenger ferrying.

Government also agrees with the union that the best solution would be a Company Pact reached around a table by all the parties in the negotiations. Government believes that such an agreement can be reached if there is goodwill on all sides.

The minister, the statement added, insisted that if there is anyone who believes this agreement is not needed or that things can continue as they have been over the past years, is very mistaken. If there is anyone, the statement added, who absolutely does not want an agreement, this person/s must shoulder the responsibility for the grave consequences this will bring on the company, on the employees and their families.

The ministry added it also agrees with Mr Zammit that all the parties involved in the discussion must work to safeguard the workers’ interests, those of the airline and its shareholders and that this issue must not be exploited for other aims.

With regards to claims the measures address only the lower ranks, government insisted that the proposed measures are addressed at all levels of the company, starting from the directors and the management of the airline. Government has already proved this: it is promising to recapitalise the company by Lm30 million, has cut the honoraria of the directors by Lm117,000 a year and has approved the sale of companies not forming an integral part of the airline’s core business, thus generating millions for the company’s cash flow to reinvest these funds in the company. All these, the statement added, are goodwill gestures from government to ensure the turnaround of the company.

Besides, government and the airline have already agreed on a series of specific measures to address costs at senior management level, the operations of outstations and all administrative and discretionary expenditures. The main aim is to ensure that the brunt of the restructuring is borne by all sectors of the company and not just by some sectors.

The airline is also ready, the statement added, to involve all unions in monitoring the implementation of the Company Pact through the creation of a new structure which will meet regularly. Today’s industrial laws already state how the representatives of the employees should be regularly consulted and provided with information. The legal basis is thus already there.

As the minister insisted in the first meeting with the unions, all must cooperate: there is nothing writ in stone: everything is up for discussion and negotiation.

This is valid too, the statement said, as regards the date for the signing of the Pact: if government considers the basis of an agreement is there, it is ready to consider the extension of some days to finalise all details of the agreement. But the final decisions cannot be postponed any further, given the financial situation of the company and the need for its recapitalisation.

Concluding,. Dr Gatt, the minister, appealed for “common sense”: the aim should be that Air Malta returns to profitability. It is, he said, “only in this way that we can avoid job losses, such as any other airline has made over the past 30 months.”

A spirit of cooperation is needed, and any confrontation must be avoided, Dr Gatt said.