Two years ago, alarm bells set off ringing and the future of Air Malta – our national carrier – was very much in the balance.
But, after intense negotiations, a rescue plan was put together, with the airline, unions, the government and especially mediator George Abela pulling out all the stops in an effort to save the company.
Without too much procrastination, they agreed on a two-year plan that would aim to cut exorbitant and highly inflated running costs, while at the same time increasing revenue.
Much was done, all parties did their best to agree and Air Malta has reaped some benefits since the deal was concluded. Many strategic and tactical decisions were taken, and the employees must be commended for taking various cuts and agreeing to drop various benefits to enable the carrier to survive. But the government too, on the other hand, made concessions and so a happy balance was found.
Last week, the airline announced that it was putting off another two-year rescue plan after objections from some of the unions representing employees. The plan was calling for further reduction of operating costs and further boosting of revenue generation. In turn, the company has decided to enter into discussions with the four unions
representing the various sections of the airline in order to sign individual collective agreements.
This decision was taken after two of the unions “expressed preference for negotiating a collective agreement rather than start discussions for a second rescue plan” while the two others “expressed reservations about a number of issues in the company’s proposal or asked further questions”, an Air Malta statement said last week.
What one has to keep in mind in all this is that objectives have to be reached for the national airline to overcome the hurdles that the airline industry has to face at present.
Malta cannot survive without its own national carrier. Air Malta is a cornerstone of the tourism industry and will continue to be so despite various forms of competition that are now coming through.
To do that, both the management and the employees need to work together to ensure continued viability. In that sense, we reiterate that it must be a two way street. Nothing ever works in a one-sided relationship and this is what all parties must recognise when they sit down at the discussion table in the coming weeks.
As we have said, the employees have made sacrifices and perhaps, the company will want them to make more. They must however be assured that their jobs and their conditions of work are a high priority for the airline. The company must also ensure that it recognises the sacrifices being made by the employees and that it appreciates them. In this spirit, one is sure that responsible unions would make every effort to ensure that the airline can go on and can return to profitability.
Another catch might be disgruntlement from employees if terms of collective agreements are leaked and they are not equal to others. In this respect, the company’s management must ensure that it tries to come up with equitable packages so that no particular sector of workers ends up with the short end of the stick.
The management and the employees, and the unions who represent them, have done a wonderful job in improving a very, very precarious situation that Air Malta had found itself in, despite problems caused by the hike in international oil and fuel prices.
One can only hope that the spirit in which the first rescue plan was drafted continues in the new round of negotiations.
The future of Air Malta does not only affect employees, or the company itself. It affects not only those who work in the tourist sector – it affects each and every citizen. Air Malta is a lifeline – losing it would have irreversible adverse repercussions on the whole country.