Parliament discusses motion allowing GWU to lease out Valletta property

The General Workers’ Union will be able to lease parts of its Valletta headquarters to different companies regardless of the amount of shares held by the union, in exchange for nearly €2 million in compensation paid to the Government, according to a parliamentary resolution.

The resolution, discussed on Tuesday, seeks to remove a clause that limited the GWU to leasing parts of its building to companies in which the GWU holds more than 51% of the shares.

In 1957, the government granted the GWU the Workers’ Memorial Building on a perpetual emphyteusis as a site on which it can build its headquarters for trade union activities and its Union Press. A parliamentary resolution in 1997 amended the lease, allowing the union to rent our parts of the property to other companies – but only to those in which it is a majority shareholder.

However, a NAO report in 2015 found that the GWU had breached the conditions of its government lease when it rented out part of the building to state-owned utilities company ARMS and the Sciacca Grill steakhouse.

Through an “expert valuation” prepared by three architects commissioned by the Lands Authority, the monetary value for the removal of this condition was determined to be €1,809,350.

Meanwhile, the GWU will have to pay compensation for breaching this condition over the years. This compensation was calculated at around €184,620.

In total, the GWU will have to pay €1,993,970 to the government for the removal of the clause and past breaches of the agreement.

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Speaking in parliament on Tuesday, Nationalist MP Darren Carabott said the Opposition will be voting against the resolution.

“This resolution is being proposed because a court identified a breach in the original contract conditions, and because they couldn’t pass through the front door they’re trying to pass through the window. This isn’t how things should happen,” Carabott said.

Lands minister Stefan Zrinzo Azzopardi defended the resolution, saying the court identified a breach but still allowed for changes to the conditions of the agreement.

“The Opposition’s intention in opening the court case was clear – to attack the concession itself and evict the GWU,” he said.

A division of votes was requested when the resolution was put to a vote. This will take place on 16 December.