The GWU said that it will stick to the agreement, and will work to help workers to find alternative employment.

IT and Investments Minister Austin Gatt, who was present for the signing, recalled the government’s statements in connection with the collective agreements for the Dockyard workers and more recently about Public Broadcasting Services (PBS). “One of the objectives was to make better use of the human resources of these firms.”

The Drydocks had more employees than the yard’s operations required but the skills these workers possess are needed elsewhere, he said.

In fact, the agreement signed with the GWU provides for the reallocation of workers with different government organisations or any of its entities, including any public-private partnership. The relocation includes the private sector, on a voluntary basis or in consultation with the union.

Dr Gatt said that IPSL had some 482 employees with a range of different skills, adding that 35 per cent of the workers are less than 40 years old.

IPSL will ultimately remain the employer of these workers and its employees will be assigned to the private companies that request their services. The private industries with whom they work will contribute 50 per cent of the wages in the first year, 60 per cent in the second and 70 per cent in the third year.

Following this three year period, the company will then, at its own discretion, be able to offer the employee a permanent contract on terms agreed by both parties.

With this agreement, IPSL’s staff will be better utilised and public expenditure will be reduced, at the same time providing industry with opportunities for sustainable employment.