Unions propose three-year wage moratorium

The four unions representing workers at Air Malta are proposing a three-year moratorium on wages and increments as their contribution to a "rescue plan" proposed by Air Malta to save the ailing airline.

They also want a clear declaration that jobs would be kept but are prepared to change bad work practices.

The counter-proposals to the government's six-year plan were presented to Air Malta's top executives, led by its chairman, at the airline's head office in Luqa yesterday afternoon.

Legal adviser George Abela, who is coordinating the work of the unions on the matter, told media representatives the unions were confident that their counter-proposals would lift Air Malta out of its difficult financial situation.

Asked to comment on the counter-proposals, chairman Lawrence Zammit said it was first important to study them seriously so it was too early to comment.

Air Malta's operating losses on airline activities stood at Lm8.86 million for the year ended July 2003.

The government's draft agreement for the airline is aimed at cutting costs by reducing workers' take-home pay, through reducing allowances and overtime. The unions have rejected these proposals.

Besides cost-cutting measures, the government has also promised a Lm30 million injection and wants to see the airline increase its revenue substantially.

The four unions - the Association of Airline Engineers, the Airline Pilots Association, the maritime and aviation section of the General Workers' Union and the Union of Cabin Crew - have formed a common front.

Dr Abela yesterday skimmed over the counter-proposals, stopping short of giving details in order not to prejudice talks which, he said, would hopefully be immediate.

He said the proposals in Air Malta's draft took care of the management side while the unions wanted to ensure that the workers' interests would also be safeguarded.

"We feel we moved balanced proposals that not only take the workers' interests into consideration but also those of the company," Dr Abela said. Rather than a six-year "rescue plan agreement" proposed by the airline, the unions are proposing a three-year plan which would see a moratorium on wages.

He insisted this was not a wage freeze because cost-of-living increases would continue to be given.

The unions' collective agreements, which have all expired, would remain in force for the next three years.

Dr Abela said the unions were proposing that as the plan's implementation progressed, they should be involved in talks with the management and kept abreast of the company's financial situation, how it was faring under the rescue plan and if the measures were producing the desired results - so that if not, corrective measures would be taken.

"If the management needs the support of the workers it is important they will be involved in the plan."

The unions also accept that there should be no increases in increments and in certain allowances. Negotiations would be held over other allowances, Dr Abela said.

He said salaries were to be safeguarded and the "real disposable income" of the workers would be kept at the same level over the next three years. The unions have all agreed that over this period there should be no redundancies. "They want a declaration that no jobs will be terminated," Dr Abela said.

Unions were prepared to allow flexibility and to change bad work practices, he added.

He insisted that what needed to be done to save Air Malta should be achieved not through imposition but through understanding the situation; each side should understand the other and acknowledge that the action was for their own good and that of the economy and the country.