The FOI and the Malta Chamber of Commerce issued a joint press release last week commenting on a media release issued by the Malta Employers Association about the situation of redundancies at the Drydocks and how these should be considered.
In the statement the two employer organisations stated that they have considered the situation and fully agree with Government that the loss-making situation cannot be allowed to proceed any further.
"It concurs with the Malta Employers Association that government should not have two weights and two measures for redundancies. In the private sector an employee who is redundant is transferred to the unemployment register and allowed unemployment benefits.
"Any redundant employees at the Drydocks or in any other public sector corporation cannot be treated differently and allowed their basic wage instead. This would be creating a precedent that would result in problems for Government itself, the trade unions and the country."
The joint press release remarked: "Besides, the Government's financial situation cannot take the strain of higher losses being incurred. Lm15 million subsidy per annum to the Drydocks together with subsidies to Gozo Channel and Freeport Corporation on their loan repayments, subsidies to Water Services and Enemalta corporations, and others, are hard-earned taxpayers' money.
"No one is to expect that the State should throw good money down the drain in support of inefficiencies, low productivity, over-employment and rigid work practices, a standard feature of a majority of state organisations.
"The Chamber and the FOI declared in clear terms that they do not agree with statements, irrespective of their origin, that Government should take it on itself to find alternative productive jobs for those declared redundant at the Drydocks.
"The two organisations do not feel that here again one should discriminate in the procedures adopted for employees found redundant in state corporations as distinct from those normally applied to employees in the private sector. Government structures and schemes at the ETC function adequately and cater for such situations.
"However, excessive bureaucracy and at times downright harassment by Government departments and authorities in their dealings with existing enterprises should be brought under control, and more encouragement for new investment given.
"That is the only way that will guarantee the creation of new jobs that will make good for redundant personnel, whether these occur in the public sector or the private sector itself."