Government-GWU shipyards talks to resume this morning

The government and the General Workers' Union are this morning expected to resume their talks on the shipyard workers' new collective agreement, the bone of contention being a rise in the basic pay of 'yard workers.

The negotiations form part of an extensive exercise aimed at overhauling the work practices at the 'yards. The government has also declared its intention to downsize the workforce by 900 to 1,600.

The talks will be led by Deputy Prime Minister Lawrence Gonzi for the government and GWU general secretary Tony Zarb for the union.

A five-hour-long meeting between the government and the GWU over the 'yards ended in deadlock last Saturday, with the union objecting to the government's stand that any wage increases should be linked to productivity and profitability - Malta Drydocks is making an annual loss running at Lm15 million and has amassed debts of some Lm310 million.

However, the union yesterday said that Dr Gonzi had informed Mr Zarb about the government's decision to resume the talks.

The meeting, which is expected to start at 9.30 a.m., will focus on wages.

The government insists that the only rise contemplated would be performance-related and that the union had accepted such a concept at other places of work. The government was also prepared to grant allowances when contracts were profitably concluded.

However, the union is insisting that the government should raise wages.

The union yesterday said it was satisfied by the resumption of talks.

"This will provide an opportunity to discuss all pending issues and hope for an agreement over the overall package."

The union said it was overwhelmed by the backing it had received from the 'yard workers during the meeting held for them at the union headquarters on Thursday.

The union said it was seeking to reach an agreement on all problems in the interest of the workers as well as in the national interest.

The management of the 'yards said yesterday that during the meeting for shipyard workers organised by the GWU, metal and construction section secretary Alfred Cassar made statements about 'yard clients, which were repeated in the media.

"These statements are false, untrue and seriously damaging to the commercial interests of the shipyards."

The management said it trusts that such behaviour will cease immediately as it is extremely unhelpful in the situation the 'yards are facing.

"Such comments do nothing to help the image of the shipyard externally in competing for business and are likely to have a negative effect on the future prospects of the 'yards and their employees."

Mr Cassar reacted by saying his comments were based on reports that had appeared earlier in the local media and which were never challenged or denied.