In Malta there are two classes of employees. These two classes have unequal access to employment safeguards. The privileged class consists of public sector employees and the less privileged is that of private sector employees. Public sector employees enjoy employment guaranteed for life.
Even if required, the public sector never contemplates redundancies to reduce an inflated workforce. At most, a government will reduce staff levels only through non-replacement of retirees. That is what the PN under Lawrence Gonzi was implementing and achieving.
This reduction objective was completely abandoned by successive Labour administrations. Today, the public sector employs 60 per cent of the Gozitan workforce. Though not so high, the trend in Malta is similar with high levels of useless unproductive jobs.
In the private sector there is no employment guaranteed for life. A company facing difficulties, needing to restructure to survive, may reduce its workforce. If it does so, then it has to compensate the persons losing their jobs with redundancy payments.
The redundant persons will receive unemployment benefits and have to seek a new job. This is common sense in an economic system that seeks to allocate its resources efficiently.
Over the last 10 years, leveraging on the vote fixation of dishonest politicians, the GWU, in particular, has exerted pressure so that this employment for life privilege is extended to employees of government owned companies.
Specifically, in the case of Air Malta the GWU and other unions irresponsibly pushed for and obtained secret guarantees on employment for life with protected rates of pay. Scandalously very high job redundancy lump sum payments are also guaranteed to whoever opts to retire.
Going by the support enjoyed by the Labour Party, it seems a vast section of taxpayers do not seem to care how Labour politicians waste precious state revenue. Behind everybody’s back they proceed to enter into irresponsible and expensive secret side agreements with various unions.
Air Malta is dead- Arthur Muscat
Going by recently revealed information, instead of an employment for life choice, 80 excess Air Malta pilots can opt for a golden handshake amounting to up to €1 million each. Further revelations indicate that many other airline employees also are in possession of employment for life guarantees.
If, instead, they choose to resign, they will receive a share of a generous €20 million jackpot.
In total, it seems these Air Malta staff compensation plans will cost the taxpayer anything up to €200 million.
Labour prevaricated for over nine years and Air Malta has been reduced to a sorry state. Due to political abuse, the airline ended up loaded with excess staff.
Today, Air Malta is basically a bankrupt airline. Successive Labour administrations have not resolved how this national airline could viably operate.
Should it be seeing to particular air travel needs of a tourist island? Does it have a role to serve import, export and general business requirements?
A combination of incompetence and dishonest political messing has led to a waste of millions in state funds. Air Malta is dead. Taxpayers are now being forced to pick up the bill of a very expensive funeral.
We do have a finance minister who does periodically protest when the various ministries indulge in uncontrolled expenditure in excess of allocated budgets. He does attempt to focus on situations of unsustainable spending. Realism and common sense do feature in his interventions. But is his a voice in the wilderness?
It looks like this Labour administration cannot engage in competent spending and judicious cost-cutting. The national debt keeps increasing.
Over 30 officials accompany our prime minister to New York to hear his speech to the United Nations Assembly.
Over €500,000 are spent on a useless Malta Metro exhibition. The country is regaled with plastic dinosaurs at a cost of almost €40,000.
In contrast, the University of Malta sees its budget reduced by €1 million. And a childcare centre used by our dedicated, hard-working and understaffed Mater Dei Hospital nurses is closed.
We are not impressed. Is Labour capable of getting serious?
Arthur Muscat is a human resources and industrial relations specialist.