GWU - Selmun workers to be laid-off before industrial talks

The union, which claims a UK buyer is interested in investing up to €55 million in the purchase and further investment in the hotel, says the layoffs are about to take place irrespectively of talks taking placed between the GWU and Air Malta with the director of employment and industrial relations.

“We condemn Air Malta’s actions, they are shameful because the employees do not have guaranteed employment if the Selmun Hotel is sold,” the union said in a statement.

The GWU said that it had met this morning with one of several prospective buyers who is expressing interest in the hotel, which is the property of the national airline but is being divested to trim the beleaguered company.

“Air Malta’s management and its main shareholder – the government – are insensitive and heartless in the face of these workers’ and their families’ fates,” the union said.

The union said it will convene Selmun employees next Monday at 9:30am.

Selmun Palace Hotel has accumulated losses of over €13 million and had ceased operations on 3 January 2011. The airline said it was still incurring expenses related to wage bills, licences, insurance and other expenses.

In the meantime, the GWU is demanding that the government guarantees the absorption of surplus Air Malta workers into the public sector. It has given the government until 30 June to give its guarantees, or it will register an industrial dispte and even consider further actions.

Some 600 workers have to be removed from Air Malta’s payroll if it is to survive under European Commission rules governing a €50 million government loan to the loss-making airline. Zarb said the way this figure was determined is “arbitrary”.

Tony Zarb has said the government had always found a way to absorb redundant workers during past restructuring processes. “I don't know why Air Malta reform should be any different.”

Reports in the media quoted European Commission officials who said that Air Malta’s restructuring will not make it possible for the airline to retain its workforce, while also casting doubt over whether government will be able to absorb these workers.