The current impasse at the Malta Shipyards can lead to serious circumstances that a country in difficulty such as ours should avoid.
A work to rule directive was ordered last Monday by the General Workers Union on two issues – the first is about the payment of an allowance to workers for practising flexibility and the other relates to the engagement of subcontractor workers, both by owners of vessels being repaired in the dockyard and by the management itself.
But the directive has apparently gone beyond mere “work to rule”, with workers doing little, if anything, of the work they have been assigned over the past three days, according to Malta Shipyards. This means that work at the drydocks has been practically at a standstill since last Monday and matters look bleak for a company that has struggled to make ends meet over the past years.
The restructuring process that took place some time ago helped to give the drydocks a chance to survive in a hugely competitive market. But it is probable that what is happening now leaves its mark.
The minister responsible, Austin Gatt, has suggested that there would be no option other than to declare the company bankrupt over the coming weeks if the GWU’s actions
persist. For its part, the union replied that the
government is dramatising the situation, arguing that this would be just an excuse to close the shipyards and blame the union for it.
What is sure is that the industrial action being taken by the union is causing damage to the reputation that Malta Shipyards has been trying hard to build. This damage could be irreparable. Once word gets around that the Maltese shipyards are not reliable, it would be extremely hard to win back ship owners’ confidence.
Such industrial action could lead ship owners to not even consider Malta as the place where they bring their ships for repair if this industrial unrest persists and if it becomes a
regular occurrence every time there is a problem.
Apart from this, the owners of ships that are at present undergoing repairs at the docks could take legal action and seek financial remedies if the work is not completed in time. This actually means that the money the shipyards should be earning could be spent in fines, not to mention legal fees. Other possible contracts could be lost.
Like in all other cases, commonsense should prevail. The government and the union must sit down and discuss the matter until a solution is found.
The union should not dismiss Minister Gatt’s threat as an overreaction because time and again the man – and the government he represents – has shown that he is not afraid to take delicate decisions.
A positive step on the union’s part is it request for the intervention of the Director of Employment and Industrial Relations.
There is too much at stake. The possible closing down of the docks will be a big blow to Malta at a time when the country cannot afford it. Just imagining the repercussions of having so many workers suddenly without a job should make the union think twice before forcing the government’s hand.
Having said this, the government must also not take any rash decisions on the matter. It must seek ways and means on how to resolve the deadlock. It must try to work out other solutions rather than do something so drastic.
The union must play its role well. Too often the GWU has seen the short-term gain rather than the long-term
benefits.