Palumbo unveils his plans to revive the shipyards, but cautious over trade unions

Antonio Palumbo, the new  owner of the Malta Shipyards talks to MaltaToday about his plans for the yards, his intention to start building superyachts in Malta, and to create a synergy between his other yards in Naples and Messina, however, he resists any talk about trade unions among his workers.

The 60 workers claim that they have had to content themselves with slashed wages, while they find it difficult to keep their jobs and be affiliated in the General Workers’ Union.

So I confront Palumbo with this information in an interview at his office in Bormla, and he responds by saying that he employs no Italians except for the most senior management, while all the work in the yards is done by Maltese.

About the salaries, Palumbo states that what he pays is the competitive rate, and while the economic crisis remains upon us, certain cuts must be made, even to safeguard the investment made in Malta.

And what about trade union affiliation?

“Is this what my workers are saying?” Palumbo asks me, while I reply in the affirmative.

“I am an employer who abides by the laws of this country and of the European Union,” he replies, while I ask him if I could write it down that he has nothing against trade union membership.

“Why are you asking me this?”

Perhaps because the workers told me that joining a union is problematic for them while they work for Palumbo... so is joining a trade union a problem for you?

“The issue is their problem…”

Whose problem, I ask?

“Theirs, the workers, because I don’t need a trade union, I am the employer.”

Fair enough… but you just told me that you abide by the laws of this country and of the European Union…

“Yes, but joining a trade union is not my issue to discuss.”

But these are your employees, and they say that it’s difficult for them to join a union.

“Look, I will tell you again, it’s not an issue for me to look into, I don’t need to discuss this,” Palumbo insists.

After a short lull as tensions ran high over this subject, Palumbo tells me:

“You are a journalist, and I am a businessman. I am not interested in what you write about me or my company. Frankly, I never read newspapers because I don’t have time to waste as my business comes first. I was never involved in trade union or political issues in Italy, and neither will I ever be in Malta.”

And this is where I butt into Palumbo’s statement, telling him that Italian media quoted him complaining of  “too much trade union obstructionism in Italy,” and that was my line to edge Palumbo further into confronting me on the issue.

“I repeat I will not involve myself in political or trade union issues,” Palumbo insists, shutting down the conversation on the matter.

After we both drink an espresso, we come back to the issue of shipyards operations. Palumbo explains that he is present at the yards from 6.30am to 9.30pm every day, in a bid to revive them.

“It is unfortunate that some may consider me as an outsider, but in truth I have invested all I had with great risk in an enterprise that has lost credibility over the years. I want to revive the yards and stray away from the reputation Malta Shipyards have brought on them,” he said.

That said, I ask Palumbo to explain how he intends to regain this credibility he claims the Malta Shipyards have lost throughout the years, and what made him want to acquire a “non credible yard” in the first place?

He replies that that he is working “around the clock” to promote his company’s name as the new owner of the Malta Shipyards.

“I am taking part in fairs on ship repairs around the world and investing a lot in marketing, promoting the Naples, Messina and Malta yards as the Mediterranean hub for a one-stop-shop centre for services.

“I am working to intercept all naval traffic through the Mediterranean, and with the help of all the Maltese, these yards will be revived and start to deliver the much-desired results that will raise the economic profile of this island nation.”

Palumbo explains that it is a very difficult business and competition is quite cutthroat, and worse: the economic crisis has left a tremendous impact on the expenditure of ship owners.

“The issue of credibility can only be won back with hard work, by telling the world that the Malta yards are qualitative,” he says, adding that he is more than confident that the tide will gradually turn in Malta’s favour as the word spreads around that there has been an upgrade to the facilities and that the situation is very different from what it was before.”

Palumbo is determined to employ the very best from among the previous work complement in the yards. So far 60 have been re-employed and he has so far denied any employment of any Italian workers, save for senior administration like finances and human resources.

He concludes that after two months in operation, the Malta yards are already seeing some positive movement, but he wants activity to grow at a faster rate, and this when all prejudice towards the yards both locally and overseas is defeated.

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Prosit Dr Gonzi well done you have saddled Malta with an unscruplous capitalist. What Mr Palumbo failed to point out is, if the wages of the maltese workers at par with those of their Italiamn counterparts. Does he expect the Maltese to give the same input as their Italian colleagues or does he pretend more.?
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This is what capitalists want. No one to defend the workers and our government is obliging. Palumbo = exploitation of the workers with the compliance of the PN Government.
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the rules of the game may be the following (irrespective of whether one agrees or disagrees with said 'rules') 1. Palumbo are the operators. they have obtained strategic and extensive facilities at what appears to be low rates (good luck to Palumbo final responsibility Maltese Government) 2. In order to compete, reach sustainable levels and maximise profit, Palumbo will probably keep its wage costs as variable as possible. This means that wages will be paid only as ships come into dock. Permanent workers will therefore be kept to a minimum. 3. As work load will increase workers will be taken on for specific jobs. There are many suppliers of labour on this basis as applies to oil rig employent etc. These workers will hail from many different countries. It is very unlikely that Palumbo will carry a permanent labour force of any significant size. The concept of unionisation is therefore alien to these 'rules' of the game/sector. These rules can only change if there is global accepatance of any changes. Once again, stating the above does not mean that one agrees or otherwise with said 'rules'. By the way, why are we now told that the malta docks have a bad reputation when Government came out year after year telliing us how well plans were going? Was this only spin? will the media bring Government to task on said spin?
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Albert Zammit
But let us admit it ... the Malta Dockyards have gone through hell and back again these past ... thirty years at least. I remember, since I was a child, way back in the very early 70s when Mintoff became PM, with the dockyard workers being obliged to become members of only one Union and having their membership fees automatically deducted from their salaries. I remember the dockyard workers in the forefront of Mintoff's military arm, so to speak. Every time he wanted to address the nation, Mintoff resorted to addressing the dockyard workers. Then, we also remember the dockyard workers laying down their tools for political manifestations. WHERE ON EARTH WOULD YOU FIND THIS DISGUSTING AND NEGATIVE ATTITUDE? And in the meantime, the country was forking out millions, pumped into the coffers and the pockets of the dockyard workers. No wonder the Malta Drydocks was not such a success story. And it is such a pity, really. We know the mettle of which the workers there were made of, but they were misled. Heavily misled. Remember the slogan written on behalf of the dockyard over the tunnel under the bastions in Paola? Well, good luck to Palumbro. No wonder he is cautious of trade unions in this context.