The Malta Independent 16 May 2024, Thursday
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Nothing to fear

Gejtu Vella Tuesday, 7 October 2014, 08:03 Last update: about 11 years ago

Yes, I cannot but give credit to the directors, management and staff at The Malta Independent. The launch of the new version of The Malta Independent website last Friday was a pleasant event, a big do; but above all it marked an improved service to the public.  Well done!

Now to my weekly line of thought!  With the public transport reform still under lock and key, the Enemalta privatisation process sealed in a large brown envelope and Air Malta present and future challenges parcelled, it is undoubtedly time to address these national challenges.

Re-organising a place of work to face emerging market challenges and cut-throat competition is not unusual. Normally,this process is called a restructuring exercise. Not an easy task at all, but just the same necessary.For those on the receiving end it may be painful. I believe that even those dispatching the decisions go through astressful experience. But bottom-line driven companies are compelled to follow economic forces. Unfortunately, places of work at times find themselves at crossroads and have to re-engineer their business activities and functions to remain competitive. The private sector in many cases is very cautious and takes small remedial actions which may be required from time to time to avoid the big-bang approach later on.

This is not always the case in state-owned companies. Politically motivated promises delay, postpone and even stopimportant decisions in public-owned companies. Politicians, some more than others, use strategic state-owned companies as if these were their own businesses. Unfortunately, the outcomes of these serious shortcomings would have to be borne by workers and society at large. It is now evident that politically-motivated promises are short-lived, and workers should not continue to seek shelter, whether real or perceived, of such promises.  There is no room for shelter.

The private sector understandably is bottom-line driven,and unless a profit is made  cannot hold on for too long in cut-throat markets.Left with no profits, the options to stay in the market are very limited, if any. In normal circumstances, unprofitable companies give in. The unexpected becomes inevitably and workers are made redundant.  Before push comes to shove, workers,even if not alerted of the dire financial situation of the company, most do notice that things are amiss and many are streetwise enough to sense that not all is well. 

In suchdire circumstances,privately-owned companies left with no elbow room for manoeuvring will replace meetings, drawing boards and plans with actions which normally are not pleasant at all. Things would have reached a point where action is needed. This process leaves workers disenchanted, perplexedand very often looking for new employment opportunities elsewhere.

This process takes a different route in state-owned companies because of political patronage.  Politicians tend to give assurances which by no stretch of imagination are in their grasp or can keep. This approach manifestly leaves many casualties. Difficult as it may be, it is wrong for political parties to give assurances in an employment environment which has changed and will continue to change. It is even worse when political parties try to give impressions that they can fare better than others in the political arena on issues on which they do not have the slightest idea how these work. Throwing public funds to cover political incompetence should not be allowed to be used as a face-saver.

The privatisation process of Enemalta, the resignation of the top brass of Air Malta  and the ongoing public transport reform are only the tip of the iceberg. It is great when the circus comes to town, but we cannot have it every day.   

Incidentally, the Registrar of Trade Unions has recently reported that collective membership in trade unions has increased by 2,396 when compared with the previous year while, collectively, Employers' Associations registered a small decline in membership of 363.Workers may have started to feel the pinch and are running for shelter. Employers' organisations and trade unions have an important role to play,as both work closely with entrepreneurs irrespective of their size, activity and the number of workersthat they have on their books.  Indeed, organisations that represent employers and workers have roles and functions that are equally important as those of government.

Employers' organisations, trade unions, and civil society have become important socio-economic players in forming the national agenda. In this regard, they should continue to equip their structures to face new challenges as the world of work is changing at a very fast pace. Much depends on their actions and strategy. We are living in challenging times, but there is nothing to fear.

 

 

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