The Malta Independent 29 July 2026, Wednesday
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Government Must endeavour to make MSL viable – GWU

Malta Independent Wednesday, 11 July 2007, 00:00 Last update: about 14 years ago

The General Workers’ Union (GWU) is convinced that there is no valid reason for Malta Shipyards Limited (MSL) to be privatised and the government should endeavour to improve the company’s situation and make it viable, said Pawlu Bugeja, secretary of the union’s metal and construction section.

The GWU is arguing that MSL can move ahead and be made viable if the management implements a plan that makes the best possible use of capital and labour. According to the union, possibilities for the recovery of MSL exist, but certain decisions and measures are hindering the process that will improve the company’s situation.

Speaking at a media conference yesterday morning, Mr Bugeja said the plan should include the concept of selective marketing that covered conversions, repairs, yachts and other industrial work and yacht repair should be given due importance.

Moreover, Mr Bugeja said that as for levels of production, the management should aim to get as close as possible to set targets. The GWU was also proposing more stringent controls on expenditure, which should also be calculated on a per capita basis.

The union’s main concern was subcontracting, because excessive amounts of money were being wasted on unnecessary subcontracts; in fact, the union was suggesting that subcontracts should be awarded only whenever MSL’s resources were exhausted.

Mr Bugeja added that the subcontractor should carry responsibility for any possible risks.

The GWU was insisting that the government should provide better financial assistance to MSL; moreover, the excessive number of casual workers was resulting in unnecessary financial losses.

MSL should employ Maltese to work as casual workers in certain categories, because the facility of communication assisted the production process, said Mr Bugeja, adding that the executive management had not been trying to improve this situation on the pretext that the Maltese were not eager to work.

Speaking about production, Mr Bugeja said a lot still had to be done in this sector.

He said the GWU was giving its full support to MSL’s new production manager, Vince Micallef; at the same time, the union expected to see improvements in production levels.

As for the financial situation of the company, Mr Bugeja said the government’s Lm4 million (EUR9.3 million) investment for a three-year period (2003-2006) was rather scanty, when taking into account MSL’s needs and the possibilities for development that could improve the company’s situation.

According to the union, certain machinery should be upgraded and much more should be invested in the company, which employs 1,761 workers.

The GWU was in favour of methods that were less labour intensive, because this was the only way for MSL to be competitive, but Mr Bugeja said it was unfortunate that a plan did not even exist in this regard.

The union’s metal and construction section had been expecting a copy of the “plan” since November last year.

Mr Bugeja also lamented that despite insistence from the GWU section, the company’s financial report covering the past three years had not yet been concluded.

He said that while the government should make a strong effort to improve MSL’s situation, both the union and the company’s employees also had a big part to play.

The GWU would shortly be writing to Prime Minister Lawrence Gonzi about this collective responsibility.

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