Port workers have accepted a 70% decrease in the contributions levied on containers which go directly to fund their private pensions, in return for a guarantee that the number of licensed port workers will remain unchanged from the present 360 for the next two years.
The levy charged by port workers on every ton of cargo – which funds their pensions scheme directly – has been reduced from 90c to 27c per ton of unitised cargo.
The agreement reached between government and the Malta Dockers Union in July was tabled in parliament this week.
Prior to the agreement, the Pension and Contingency Fund (P&CF) levy was 65c for all import cargo and 90c on unitised cargo, which is cargo carried aboard a ship in pallets, containers or wheeled vehicles.
No levy will now be imposed on the importation of bulk cereals. But a 27c per ton levy will be imposed on all other cargo.
Previously, the Malta Maritime Authority (MMA) paid 25c of the 90c levy, which constituted the difference between the tariff paid by port workers’ employers and the earnings of port workers.
In return for the reductions, port workers were given a guarantee that for the time being there will be no increase in the number of licensed port workers.
But the number of port workers can be reviewed every two years by the port workers’ board, which is to be appointed by government.
Under the current system, when a port worker retires, resigns or dies, the vacancy is firt offered to the worker’s children who inherit their licence. A public call for vacancies can only be issued by the MMA if no such “prospective workers” are available.
The only change in the new agreement is that driving duties within the precincts of the terminals can also be carried out by “auxiliary port workers”, who are neither licensed port workers not their descendents.
The pensions fund will still be administrated by a committee appointed by the minister responsible for the ports, and composed of two MMA representatives and two port workers’ representatives. The chairman is chosen by the minister.
The fund will be reviewed every five years by an independent actuary appointed by the Malta Financial Services Authority. If the contributions paid are found inadequate to meet the fund’s future obligations, the MMA can increase the level of contributions.
The pensions scheme will now be used to sponsor a training fund to be administered by the Dockers Union. But the training syllabus must be approved by the MMA.
A number of tariffs paid to port workers will also increase. The tariff on iron and steel will rise from Lm1.14 to Lm1.25 per ton. The tariff on timber and wood will increase from 92 cents to Lm 1.05. On the other hand the tariff on cement loaded and unloaded by suction plant and marble chippings unloaded by grab will be cut by half from Lm 1.22 to 63 cents.

jdebono@mediatoday.com.mt