Apparently the minister tried to cool off the irate Air Malta unions, whose proposals for restructuring seemed to have been totally snubbed by E&Y, which, instead, apparently served them with an auditor’s template of labour force-downsizing measures of brutish proportions.
Instead of cutting down on lucrative contracts generously handed out over the years to private contractors, which would save the ailing national carrier millions of euros, the proposals for restructuring went astray to cut down massively on labour costs instead. It seemed like the company was on its way to downsize its labour force by at least 600 men and women.
The fact that the finance minister sent the report back for ‘fundamental changes’ augured well for a radical change of course in the direction of a more sober appreciation of the airline’s situation and solutions meant to realistically tackle the real problems that had taken root and which are killing off Air Malta’s competitive edge. That is what I and others observing developments initially believed.
But, following a press conference led by the Leader of the Opposition, who in effect simply repeated what the finance minister had previously stated – that the report by E&Y had fundamental mistakes and required a thorough review – the minister seemed to take offence and went on the rampage in an interview in a Sunday paper.
He was apparently very angry because he was sprouting details about what was necessary to save the company from oblivion in a way that suggested that he was firmly in the driving seat of the airline’s restructuring process, and who cares two hoots about what the steering committee and E&Y will say after reviewing the first restructuring report. Were we not told that the report was returned for ‘fundamental changes’?
In his interview, the minister spoke with authority about what changes needed to take place at Air Malta and his comments were flavoured with a sense of inevitability. Indeed he confirmed that Air Malta will have to shed some 600 employees if it is to become a viable airline, which would effectively mean that it will be halving its workforce. He was also reported as saying “that we can only compete if we run a leaner organisation”.
But what does he mean by leaner? Cutting down on the workforce? Or cutting down on the contracts of services that have been outsourced to the blue-eyed boys and cutting down on the waste in other useless expenditure to keep private contractors and organisations orbiting around the airline happy?
He then went on to categorically state that early retirement schemes were in the pipeline too and that other airlines are showing interest in ”teaming up” with the company but first wanted to see the airline solving its problems. How very convenient – a case of preparing the virgin for pleasures yet to come! As minister responsible for the economy too, he seems not to care two hoots about the airline’s strategic and infrastructural importance to the national economy.
But all this suggests that it’s a fait accompli. The minister has already decided what must be done to safeguard the company’s future. So what was the point of returning to E&Y the restructuring report in the first place if there is really no room for any “fundamental changes”?
The minister has spoken and so be it. Let not the steering committee decide, let not E&Y make fundamental changes to its report and let not the Opposition call any more press conferences.
“L’Air Malte, c’est moi!”
Dr Gulia is the Opposition’s Main Spokesman on Tourism and Air Malta