GWU informed of plans to issue call for tenders

The government yesterday informed the shareholders of the Cargo Holding Co Ltd it would be issuing a call for tenders for the operation of various port services.

Such a move could possibly mean cutting off a major source of revenue for the General Workers' Union.

Competitiveness Minister Censu Galea, who is heading the port reform, told top GWU officials the government intended to complete the tender document for the management of port merchandise by the end of the year. It will however come into effect once the contract of Cargo Handling Co Ltd expires in July 2006.

The government has made it clear it intends to steer ahead with a port restructuring exercise aimed at reforming current work practices and eliminating obsolete ones.

Speaking to reporters at the end of a one-and-a-half-hour long meeting, Mr Galea said the government was determined to carry out the vast majority of reforms by the beginning of next year. "I just hope that the spirit of reforming the ports prevails over other issues which are of interest to the same union," a resolute Mr Galea said.

The ministry has appointed a steering group to lead the discussions with various port sectors to ensure the exercise takes place without any undue delay.

Among others, the steering group has been given the task to carry out an independent audit of Cargo Handling Co Ltd and draw up an economic and financial strategy for the Grand Harbour.

The GWU asked the minister to extend the contract of Cargo Handling Co Ltd beyond 2006. Mr Galea explained that this request was refused, following which the GWU asked for the right of first refusal - a decision which will be ultimately taken by the Cabinet.

Flanked by Malta Maritime Authority chairman Marc Bonello, Mr Galea said the sector, the workers and the ports' clients would ultimately benefit from the reforms taking place.

The ports were still riddled with unjustified tariffs that were making the ports uncompetitive, the minister charged.

The MMA had concluded that Cargo Handling Co Ltd was failing to meet certain obligations but the minister would not be drawn into listing these shortcomings. The GWU has accepted to give the minister a reply in writing to this charge.

Mr Galea said the GWU had not given any hint about what action it planned to take next, should the issue escalate.

GWU general secretary Tony Zarb was evasive with the press at the end of the meeting. "We made our own proposals and we are expecting the government to come out with its counter-proposals," was Mr Zarb's vague reply, when asked about the meeting.