Air Malta has signed a collective agreement for ground handling staff, the third one for its staff over the past month. A fourth agreement – with pilots - will be signed “in the coming weeks”, and not by the end of the year, as initially targeted.
The agreement for the ground handling staff was signed between Air Malta and the General Workers’ Union. It will see the hiving off of ground handling services to a company that will be set up next year. The new company will also ensure investment to allow for a competitive sector, Air Malta chairman Charles Mangion said this evening.
The 450 ground handling employees will see a raise of 19 per cent in their income over five years and a guarantee of employment within the public sector in the case of privatisation.
But the staff need to ensure high productivity, efficiency and flexibility, Dr Mangion said.
Addressing the media ahead of the signing of the agreement, GWU general secretary Josef Bugeja said the discussions were “more than intensive” as the hiving off raised concern among the ground handling staff, who were pioneers in the establishment of the airline.
The agreement will ensure take-home-pay and peace of mind in case of privatisation, while the majority of part-time staff will have the opportunity to become full-timers with the company, he noted.
Mr Bugeja noted that 98 per cent of the ground handling staff that the union represented had voted in favour of this agreement.
Tourism Minister Konrad Mizzi said that the new government company, which will be called Air Malta Aviation Service, will see the investment of five million euros in new equipment, including coaches.
READ: First in series of collective agreements signed by Air Malta
When asked about the remaining collective agreement with pilots, he said the airline had offered all it could for the financial package.
"In the coming days we will be carrying out an exercise that looks into further promotions, especially for first officers, and other opportunities, and then speak with the union about the potential packages," he said.
In November, Mr Mizzi had stressed that all four collective agreements had to be closed by the end of the year to allow the airline to focus on revenue. The agreements will be for five years, rather than three, to allow for a period of industrial peace.
READ: Cabin crew sign Air Malta agreement for five years
Asked specifically whether the agreement will be reached by the end of the year, Mr Mizzi expressed confidence that in the coming weeks, the issue will be “pushed forward as much as possible”
My appeal is to reach a reasonable agreement – I think we have a good offering on the table, he insisted.
Earlier this year, the Times of Malta reported that banks wanted the airline to conclude talks with all unions before they give the go ahead to new credit facilities based on a new business plan.
The four collective agreements which the airline wishes to conclude will cost it an additional €16 million, but it is hoping to increase its revenue by €100 million over the five-year period.
So far the airline has signed new collective agreements with its engineers, cabin crew and ground staff.
The first agreement was signed on November 24, after the airline and the Association of Airline Engineers reached what was described as a “landmark agreement” by Mr Mangion.
Then on December 6, a five-year collective agreement was signed with the union of cabin crew.
This week, the Times of Malta reported that Air Malta’s pilots are still not satisfied with what the national airline and the government have put on the table in the ongoing negotiations.