IPSL pays €9 million to 'surplus' workers, but not enough demand for their skills

Seven years since the government accepted to pay the MDD’s €700 million debt, the creation of IPSL (Industrial Projects and Services Limited) by Lawrence Gonzi as then social policy ministry has not only absorbed 484 drydocks employees who retained their same basic pay, but an additional 144 surplus workers from so many government agencies like MDC, METCO and IPSE (which merged into Malta Enterprise), Sea Malta, Limsuk, and even remaining shipyard workers from MDD’s successor – Malta Shipyards.

“IPSL has served as a tool to cushion the social and economic impact arising from restructuring exercises,” the National Audit Office says in its 2009 report.

However, it continues, “there may not be demand for the skills and trades of a significant portion of IPSL employees” in the public sector, and private sector employment is not even pursued by the IPSL. Most of the workers, mainly tradesmen, unskilled and support staff (65%) work in government departments; another 23% with local councils.

This raises questions on IPSL’s €9 million salary bill for a workforce which is relatively approaching retirement age (45% are aged over 50), although whose work is “of a satisfactory standard.” All IPSL employees retain their same basic pay as their previous employment, but according to an NAO sample, it is already 18% higher than what is paid by government to other employees performing the same tasks.

“The case study showed that in engaging IPSL employees, government incurred higher costs than those entailed in direct recruitment.”

And because there is little demand for IPSL workers, the employees “are usually assigned work which carries a lower remuneration than that paid to them.”

IPSL doesn’t even have information from employee’s interviews on their transferable skills and if they might be suitable for future job deployment in the private sector.

“The cost of engaging IPSL employees in public sector entities may also not be the most economical due to the policy of guaranteeing the basic pay received in previous employment,” the NAO said, and called for their deployment in private and private-public areas.