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Kurt Sansone
Restructuring at Air Malta will not focus solely on changing certain work practices, which could save the airline up to Lm3 million yearly, but also on the company’s out stations that cost almost Lm4.5 million annually to run, MaltaToday has learned.
Unions got wind of the work practices Government intends to change during the first meeting held with Investments Minister Austin Gatt this week, a meeting described as positive by ministry officials.
The blueprint of work practices that need changing will continue to be discussed next Tuesday after which ministry officials will start meeting the different unions separately to discuss work practices pertaining to the airline’s different sectors.
Government has promised that restructuring of work practices will not mean a reduction in the basic pay of Air Malta employees, a wage bill that over the years has been inflated by a number of illogical measures most of which do not even result from the collective agreement.
Anybody doing even 10 minutes overtime after 11pm is automatically paid for six hours of overtime. Employees working on shift have a working week of 37.5 hours, a situation that costs the airline almost Lm0.5 million per annum. Transport to and from work for cabin crew and pilots costs the airline almost a quarter of a million every year while employees working normal office hours are paid a ‘day duty allowance’ of Lm1 per day. This measure costs Air Malta around Lm170,000 per annum.
However, tackling these work practices and others is only the first step to make the airline more competitive, a ministry official told MaltaToday. In the months to come Air Malta will also have to restructure its out stations where managers are paid exorbitant wages. These offices abroad are costing the airline Lm4.5 million yearly. The airline will also embark on an exercise to cut other fringe benefits, described as discretionary expenses.
Minister Gatt has set himself a tentative Easter deadline for the end of negotiations and with the Opposition Labour Party voting in favour of the two Air Malta bills presented in Parliament this week it seems that restructuring has started on a good footing.
A ministry official has confirmed to MaltaToday that all unions will eventually be signing the same agreement so that everybody would know what work practices have been changed in the different sectors. Government remains steadfast in its intention to invest a further Lm30 million through recapitalisation, approved in Parliament this week, only if agreement is reached.
kurt@newsworksltd.com
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