Government looking into ways of easing impact of Air Malta restructuring

Finance minister Tonio Fenech has said the governmnet is committed to respect an agreement with unions to consult them on matters relating to Air Malta employees.

12 February 2011, 12:00am
by Matthew Vella

2 min read

Fenech said that during the meetings of the Air Malta restructuring committee, the appointed experts presented the different aspects of the restructuring plan being proposed for the national airline.

The ministry was reacting to complaints by the Labour Party that the committee monitoring the restructuring of the airline had not been told of any plans – reported in the Times – which could see the airline cut its workforce by half.

The European Commission has already approved a €52 million loan from government to Air Malta, on conditin that the company’s restructuing plan is approved within six months.

“Government understands that there will be important and difficult decisins to take to make the company viable again... The number of employees must reflect the operational needs at Air Malta, which is facing stronger competition than ever and higher fuel costs.”

Fenech said government was working towards guaranteeing the future of the airline, but accused the Opposition of riding on media speculation for its political gains.

The Times reported this morning that half of Air Malta’s 1,200-strong workforce could be shed as part of the rescue plan being explored. Civil aviation industry sources said the airline would need to shed about 600 employees to be able to operate profitably.

A circular was issued to heads of government departments asking them to identify positions that could be filled by workers redeployed from Air Malta. The government is planning to employ as many redundant Air Malta employees as possible but this does not mean all of them will be redeployed with the public sector.

The sources said the steering committee working on the restructuring plan did not actually discuss redundancies but the report, being compiled, will go into each department and see how many workers the company could do without.

The plan is at “an advanced stage” and the government has now embarked on one-to-one meetings with union representatives to discuss the airline’s future in more detail.

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

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Dear Robin Huud. I fully agree with you about the ministers payrise. I am not against education but obviously everthing has its price. If the number of students are to go up the education model in Malta cannot be sustained! Another issue is look at the salaries that are to be given to university professors it is absurd! Perhaps they should donate their salary to the students who give zero economic contribution to the country!!! http://www.timesofmalta.com/articles/view/20090123/local/academics-set-to-earn-up-to-euro-16-000-more

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mber, MPs have had a pay rise. Ministers a hefty increase too and to top it all they get a full pension. Why should you take it out on education?

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Lill hbieb tieghi tal-AirMalta" Sincerament jiddispjacini nara l-maritirju psikologiku li ghaddejjin minnu bhalissa. Jekk hux il-loans li ghandkom mal-banek jew il-hobz ghall familja. L-ugiegh thossu 24 siegha kulljum. Tghidu x'tghidu imma li dan hu tort taghkom ma' tghiduh QATT. Haddiehor? Dak halluh fil-kuxjenza tieghu. Veru - tieghu mahzun imma tinsewx : Alla ma' jhallasx bis-Sibt u idejh jilhqu lill KULLHADD. Wisq nibza li Gonzipn qed juza l-istess tfassil tal-libsa li uza ma' tat-tarzna. Innutaw. Kull meta l-gvern gab CEO barrani gabu biex IFALLI l-intrapriza. Jibda bill jqaccat lin-nies f'ammonti (waqt li l-barrani jimpalalu bil-kbir). Jghaddi z-zmien u jerga' jqaccat sa ma tasal il-gurnata tal-eghluq!! Imbaghad? Imbaghad jidhol xi "barrani". Innutaw kemm il-manuvrar ILU li beda. Araw kemm rotot "ghalqet" l-Airmalta u araw MIN rebahom? Min jaf? Forsi l-Airmalta ssir linja tajba ghall merkanzija BISS? Haga wahda biss kullhadd ghandu jaqbel dwarha. Gonzipn se jgib lill Airmalta GHASAFAR TAC-COMB LI MA" JTIRUX!!

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In this banana republic of nice words and very little deeds, most organizations have excessive debts, where you get professionals who do not even attend work and are on several boards get a massive salary rise. Where students get stipends for zero contribution to the economy. Where the current education expense is set to increase by over 30%. Where directors of goverment organizations are paid at least three times the amount of their subordinates can one expect better ??? At least the goverment is trying to help the workers out, but the real problems pervades all maltese culture is the laissez-faire attitude which is shown by the goverment. The situation is always management by crisis not proper serious management!

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dear Gonzi, i still have your letter before the last election where you told me and all my colleagues that my job was secure, and the future bright. However, i have no illusions about how you go about keeping your word. Too many examples..you are still doing everything to crush airmalta, so long as you keep the MIA and the MTA and the MHRA happy. You do not allow us to work in a profitable manner and then you accuse us of losing money. Next summer's schedule is the perfect example. We lost 2 leases so that your friends at the MHRA will have all the capacity they want. Need I say more ? Fair competition ? are the low cost still being subsidiized from our taxes, even though on some routes they have exceeded the 3 years limit permitted by the EU ? will you subsidize Ryanair on Glasgow, because it is a new route(sic) after Airmalta has operated it for donkey's years ? Do the low cost pay airport taxes ? PAr idejn sodi indeed,, One last word to Toni Zarb. Remember, last in first out. Don't betray us Ton. We who have been members of the GWU for ever should not be sacrificed for those who entered the union these last few days for convenience sake.

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Dear Dr Fenech, Why for your Government this amount of job shedding was unavoidable? Little do they say though that we had a chance 10 years ago or so when the government bought the RJs and Avro lines which cost us 150 MILLON LIRA. Who was held accountable? Has anyone faced the chop for leading this company into a brick wall? Did we have a choice? Of course we had a choice. But the government did nothing. It devised a plan to "save" Airmalta in the year 2000 and it failed miserably . It is True that international factors have weight but a big part of that weight must also be carried by the Government which has done its darned best to get the National airline on its knees!! The employees always bear the brunt of successive incompetent managers / CEOs / Government Decisions! Let us hope the government bring someone to Justice not give the blame on the employees. Do you intend to place the redundant(axed) employees with the public sector or this is just a filthy tactic so that the employees who will be sacked will not lament? Before you axe the workers you must provide them an alternative job not axe them and will do the talking later. All the AirMalta employees must me treated with respect not just a number. Hope that you listen to the Unions and not axe the workers before you find them an alternative job because all workers have famlies and commitments.

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Bidillu, it's two years NOT two years and a half. Save your breath and when the time comes show the Gonz what you're worth.

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TGHIDX KEMM FERHET OMMI, U KEMM GHIRU IL GIRIEN X'HIN SARU JAFU LI DHALT L'AIRMALTA. KULLHADD KELMA WAHDA KIEN IR-RAHAL...''IL BIDILLU DAHAL L'AIRMALTA TA!''. ''MINJAF X'PAGA JAQILGHU DAWK TA L'AIRMALTA FESFSET IL GARA''. MINN DAK KOLLU GHADDEW 24 SENA..U ILLUM IL-HADDIEM TAL AIRMALTA SAR L'ARUKAZA TA KULLHADD. IL GVERN SER IKOMPLI IKASBAR U IDAHHAQ IN NIES BINA. MA JIMPURTAX, HA NKOMPLU NAQILGHU FUQ RASNA...TAPIT GABNA LILNA IL HADDIEMA TA L'AIRMALTA. HARJA F'WICC L 24 SENA LI TAJT GHAL DIN IL KUMPANIJA...GRAZZI SUR GONZI...SENTEJN U NOFS OHRA ZGUR NIBQA NAFULEK!!!