Former tourism minister Konrad Mizzi had signed an agreement with pilots guaranteeing them a job at the same take-home pay they are earning now.
That 2018 agreement has now become a major sticking point in discussions taking place between the pilots and the government over redundancies, sources say. The airline wants to slash pilots’ salaries to €1,200 or sack most of them amid the airline crisis brought about by COVID-19.
First officers’ salaries range from €50,000 to €80,000, while that of captains stands at between €90,000 and €140,000.
The document, signed on January 26, 2018, is a side letter to the pilots’ collective agreement, signed by Mizzi on behalf of the government and five representatives of the Airline Pilots’ Association Malta (ALPA). There are no Air Malta signatories.
It gives pilots a guarantee of a job in Malta, valid until the collective agreement – signed moments earlier – expires in 2023 and another is signed.
Asked about this matter yesterday, Economy Minister Silvio Schembri, who is now politically responsible for the national airline, refused to comment, saying he did not want to jeopardise the talks.
“These are internal matters and I will not reveal or comment about them,” he said.
When it was pointed out to confirm the existence of this side agreement, Schembri repeated: “I cannot give you information that could jeopardise the talks. Once there are developments, we will inform you accordingly.”
The side letter, which was never made public, states:
“The parties agree that through this agreement the government is giving all pilots a guarantee of a job in Malta and a take-home pay, according to the conditions of the collective agreement signed earlier today.
“This guarantee will continue to stand until a new collective agreement between Air Malta and ALPA is signed and which must be concluded within a reasonable time from its expiry.”
The pilots’ union is now demanding that the government respects this agreement, which was also mentioned in a judicial protest ALPA filed earlier this week against the airline and the economy minister calling for meaningful consultation.
Sources said discussions between ALPA and the Air Malta management continued on Friday in a bid to avoid redundancies.
The airline wants to lay off 108 of its 134 pilots as it is only operating two flights a day.
It also insists that, in the circumstances, it is not in a position to pay the pilots a severance package but would only pay the statutory amount due to them for working their notice period.
A social wage of €1,200 is being offered to all the airline’s employees, who number over 700, at a time when the airline industry is at a complete standstill.
Practically all airlines are introducing cost-cutting measures in a bid to avoid redundancies or outright collapse.
The new wage means full-timers who have been with the airline the longest would have their pay slashed by between 60 and 90 per cent.
Air Malta has been struggling financially for several years, despite a €130 million government bailout and restructuring plan in 2012.