Gatt meets unions over Air Malta

Investment Minister Austin Gatt yesterday met trade unions representing Air Malta employees to explain the company's financial situation and outline what he sees as the way forward for the national airline.

The government, which is said to want the issue settled by Easter, is to hold another meeting with the unions on Tuesday.

Representatives of the Airline Pilots' Association, the unions representing the cabin crew and the engineers, as well as the Union Haddiema Maghqudin and the General Workers' Union were present for the meeting.

Dr Gatt said the meeting was cordial and he was impressed by the positive approach and suggestions of the unions.

Sources said Dr Gatt explained at the meeting that Air Malta had lost Lm17 million from its core business in the last three years and the government wants it to recoup Lm9 million as soon as possible.

The company had enough cash flow for the next two years but unless internal changes are made in the meantime, it could go bankrupt.

The government was trying to make the changes without cutting wages or making people redundant but these measures would not be ruled out unless the required reforms took place, Dr Gatt told those present.

Among the immediate measures, overtime is to be severely curtailed and allowances reduced across the board. The number of outstations and staff are also expected to be affected.

The company is already trying to make internal changes to its management and the number of group heads will be reduced from 26 to eight. Three-year contracts are to be offered with performance-related incentives.