The Government has said that it reaffirms its repeated position that the privatisation process undertaken by the Government of Malta of the Malta Shipyards will fully respect the obligations of the transfer of business directive (Council Directive 2001/23EC) on the approximation of laws of the member states relating to the safeguarding of employees’ rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses. The Government has repeatedly affirmed this statement on a number of occasions, that is, the bidders who will be awarded the shipyards, would have to take over the workforce should the transfer of business take place.

The Government added that it would would however like to clarify some misconceptions that the AD seems to have and on which it has based the letter to Commissioner Spidla.

“Neither Minister Fenech nor the Government have at any point in time or in any press statement, stated that Government had commissioned a report to justify the number of workers that would have to be downsized prior to privatisation.”

“This exercise in itself is not even possible since only the expressions of interests will shed light on what type of activity the private sector deems more viable and interested to operate and thus the number of employees that would be considered required to operate a venture viably, thus not requiring state subsidies that will be prohibited post 31 December 2008.”

“The Government would also like to clarify that before issuing the Expression of Interest document this was discussed with DG Competition officials.”

“In terms of how the Government has arrived at the 700 employees level, the Minister had given a detailed explanation to the press on a number of occasions, and what has been repeatedly stated was:

1. Internal Management reports made by the Shipyards management, presented even to the Opposition last year and tabled in Parliament, clearly stated that the shipyards were still significantly over-manned and that employment levels needed to be further reduced if there should be any hope that the shipyards would become viable.

2. Also, assessments made by other shipyards that had expressed an interest in somehow participating in the shipyards late last year, had withdrew their interest particularly because of what they deemed too high employment levels, they had then indicated that in there opinion the shipyards would not be viable with employment levels that where in the levels of more then 450 full-time employees.

3. After reviewing employment levels of other similar shipyards in the region; including Palermo (around 530), Hellenic (Greece) (around 220), and Lisnave (Portugal) (around 350), Government concluded that, although somewhat optimistic with numbers around 700, in the light of the transfer of Business Directive, privatisation prospects would not be jeopardised.”

“Government would like to remind AD, that failure of the privatisation process would not only mean that the workers have no new business to go into, but would exclude the possibility for Government to offer voluntary early retirement and resignation schemes.”

“The Maltese Government affirms that the process that has been undertaken is not only intended to respect the social obligations emanating from EU Directive 2001/23/EC relating to the transfer of business, but rather to ensure that we will have a successful privatisation that will allow us to transfer the remaining workers on the books of Malta Shipyards Limited to the new undertaking/s.”

“The Government hopes that AD appreciates that this directive only applies if a successful privatisation takes place, and therefore urges AD not to take any further unilateral initiatives that may have the intent of gaining the sympathy of the workers directly involved, but end up only jeopardising their own interest, as only a successful privatisation can ensure that the best interest of the workers opting not to take the voluntary schemes can be safeguarded.”

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