The “consensus” reached in Parliament on Monday with regard to the privatisation of the Malta Shipyards is only the first step in a process that had to take place, sooner or later.

The announcement made last week by Prime Minister Lawrence Gonzi – that the Cabinet had decided to entrust the Privatisation Unit falling under the Finance Ministry with the privatisation of the shipyard – was not surprising.

For many years, the company has been operating at a loss and with no further subsidies allowed as from next year because of European Union regulations, the government was bound to take a decision to find a way out. Once closing down the yard was not an option, considering the political and social implications of such a move, the only solution available was its privatisation.

Following the public announcement, it was to be expected that the General Workers Union would be the first entity to protest, saying that the government should have consulted with it and calling for the setting up of a task force to analyse the situation.

The demand was immediately supported by the Malta Labour Party, but it was turned down by the government. Since then, the MLP has accepted the privatisation process “in principle”, to quote what the MLP deputy leader for parliamentary affairs Anglu Farrugia said in Parliament.

Whether the GWU will follow suit will be known after a meeting is held with Finance Minister Tonio Fenech on Friday, but with the MLP already “accepting” the inevitable, the GWU has little leeway in which to manoeuvre.

In fact, Dr Gonzi refused to be drawn into replying to more questions put by the opposition in Parliament last Monday, preferring to wait for the outcome of the first meeting with the GWU before giving further information. This has, in a way, put greater pressure on the union which must on the one hand seek the best conditions for its members, but at the same time cannot be perceived as being the only entity trying to halt the process.

With the MLP expressing itself in favour of the privatisation – with reservations as to how it will be done – the GWU needs to take a line of least resistance, even because public opinion is very much in favour of the government’s decision. Through the process, the country will be saving millions of euros, money that is derived from taxes.

Some e770 million in debts accumulated over the years were in fact written off by the government during the shipyard’s restructuring process a few years ago.

With everyone on board, the privatisation process will be much smoother. Potential investors will not shy away from the possibility if they see one united front. The country as a whole and the shipyard workers and their families stand to benefit if everyone pulls the same rope.

Naturally, the technicalities of the transition, as well as how the workers will be affected and the early retirement scheme that is being offered, need to be seen to. The fact that the company has already gone through a similar experience when the Malta Drydocks and the Malta Shipbuilding merged into Malta Shipyards a few years ago should be helpful.

That time, the number of workers was drastically reduced, and the same will be happening now because, in the words of Prime Minister Gonzi, “the 1,700-strong workforce is still too big”.

Although the government has not quantified the amount of workers that Malta Shipyards needs to shed, Dr Gonzi made it clear that there has to be a drastic cut. This will make the privatisation of the yard more attractive to any investors who might be considering the option.