The agreement, dubbed Air Malta’s Rescue Plan Agreement, is aimed at returning the national airline to viability while guaranteeing that none of the employees will be losing their job.

The signatories to the agreement were Lawrence Zammit, as Air Malta’s chairman, and officials of the four unions representing the employees: Captain Anton Galea for the Association of Airline Pilots, Evan Cutajar for the Union of Cabin Crew, Manuel Zammit for the General Workers’ Union and Adrian Rizzo for the Association of Airline Engineers.

Information Technology and Investment Minister Austin Gatt said such an agreement showed that when unions and management get their acts together and place all their cards on the table, a solution which is beneficial to all is found. He said this agreement also gave the parties concerned confidence that when the company is at the crossroads during this restructuring plan, other solutions will be found if the same methodology is applied.

He said that sometimes confrontation was needed to wake everyone up and help everyone understand each other during an open-minded process of dialogue. This is the beginning of a long process to turn the company’s Lm9.5 million loss into a profit, said Dr Gatt, and the agreement projects savings of around Lm1.4 million as a result of new work practices.

In addition, the plan is for operational and administrative costs to be reduced by a further Lm3 million. He added that the company needed to seek ways of increasing revenue by increasing the number of passengers and indirectly referred to lower-cost travel, according to market needs and requirements.

Dr Gatt said that the situation, which was difficult enough to begin with, was being made worse by the increase in fuel costs, which meant that in the current year the company would have to spend an extra Lm3.5 million on fuel.

He said an important part of the agreement signed yesterday was the establishment of a works council which would ensure mature dialogue between all those involved, especially the unions and the management. “Together we can make it,” he said.

The minister also spoke about flexibility and its importance, adding that otherwise, “we will be doomed to die.” He said that middle management was to serve as a link between the company’s management and the workers.

Each of the representatives of the four unions expressed their satisfaction that, as a result of fruitful discussion, an agreement which was beneficial for both employees and management had been reached.

Lawyer George Abela, who was appointed adviser to the four unions and who ended up being the mediator between the unions and management, also expressed his satisfaction that the agreement had been reached.

“I sincerely congratulate the unions and management for the maturity they have shown during the discussions. There would have been no rescue plan if the union and management had not applied the ‘give and take’ concept. We started with five practically different positions and have reached one agreement which is in the best interest of the company and its employees,” he said.

He explained that even though the agreement covered a three-year period, it would not end when this is over and is subject to revaluation. Moreover, the individual collective agreement for Air Malta employees, which had expired, has been extended for the period.

Dr Abela said the agreement also stipulates no wage increases between 2005 and 2007. In 2008, 2009 and 2010, employees will receive double the amount of increments to compensate for the three years with no wage increase. Replying to questions from the journalists present, Dr Gatt said that the aim is for no new employees to be engaged by the company, except to fill vacancies.