The government will issue early retirement schemes for shipyard workers next week, despite the General Workers Union’s (GWU) insistence that the government should issue the schemes after negotiating the privatisation package with the prospective operator.

Finance Minister Tonio Fenech addressed journalists shortly after a meeting with GWU officials yesterday afternoon, saying the union had failed to give its reaction to the schemes as put forward by the government on Tuesday.

He said the union agreed that Malta Shipyards be privatised, and that voluntary early retirement schemes be issued.

However, the GWU wants the government to provide workers with a guarantee that they will be given alternative employment opportunities, he said.

“We are informed that there are already a number of people who have alternative work opportunties. So my appeal to workers is to move to alternative employment if they have the chance to do so.

As for those who will be applying for the schemes, they will be modelled on the early retirement schemes issued in 2003, said Mr Fenech. All ‘yard workers will be receiving letters detailing the schemes next week, and the minister said he hoped the GWU will not intimidate workers who would like to apply for the schemes.

He said the government is bound by the EU directive regarding transfer of business, which states that a private company that takes over a public entity is obliged to keep all workers in employment and under the same work conditions, as stipulated in their collective agreement.

“If we do not have a more manageable number of employees, we’ll be risking failing in the privatisation process before we would have even started, and we’ll be risking having to close down Malta Shipyards completely.

“Moreover, the government will not be able to offer employees early retirement schemes when the private operator comes into play. It is in the interest of workers themselves that the privatisation process works,” he said, adding that the government intended to complete the process by the end of the year, when Malta Shipyards will no longer receive government subsidies.

In a statement issued on Thursday, the ministry said the Maltese public cannot continue to carry the shipyard’s financial burden, which to date reaches e950 million.

It said that postponement of the early retirement schemes may simply mean that private investors show no interest in the privatisation process because the government is informed that no investor is ready to take over Malta Shipyards in its current state.

GWU counter-statement

In a statement issued after the meeting held between the General Workers Union and Minister Tonio Fenech, GWU Secretary General Tony Zarb remarked that the government's attitude seems to convey the message that it will not abide by its pre-electoral promise. In February, government had promised shipyard workers that their employment is secure.

The GWU said that it was not contrary to the shipyards' privatisation or against early retirement schemes. The GWU retained that albeit it wanted to safeguard the interests of the employees who opt for the early retirement schemes, it also wanted government to guarantee the employment for those who do not choose such schemes.

The GWU said that it is only prepared to continue talks if government agrees to:

· ensure that the dockyard remains as one entity;

· not allow speculation of the dockyard;

· safeguard the employment of the employees who do not opt for the early retirement schemes;

· establish cooperatives;

· retain the Boiler Wharf and the tank cleaning station as part of the dockyard;

· and consult and inform the GWU on the privatisation process.

The GWU added that it will be convening a meeting on Monday morning at 11am for the dockyard employees in order to inform them of what had been discussed during yesterday's meeting.