13 - 19 January 2000

Malta Drydocks in first bid for repair of US Navy vessel

by Franco Aloisio

The Malta Drydocks yesterday presented its first ever bid for a repair contract of the United States Navy, the 'yard's chairman Noel Zarb Adami said yesterday.

He told The Malta Business Weekly that the Malta Drydocks has presented an offer for repair works to be carried out on an auxiliary ship owned by the US Navy.

This contract was made possible following the historic agreement signed in December 1999 between the 'yard and the US Navy, whereby the Malta Drydocks changed its policy vis-à-vis the repair of American warships and auxiliary ships.

Until the agreement was signed last year, the 'yard could not carry out any work on such ships as this had been considered by the previous drydocks council as a violation of the Maltese Constitution.

Prof. Noel Zarb Adami was speaking yesterday after the signing of a collective agreement for the 3,000 workers employed at the Malta Drydocks.

The agreement stipulates wage increases for the coming years, and also establishes the work practices which should prevail at the Malta Drydocks.

While no performance bonus will be given to the workers, the latter will benefit from a total wage increase of Lm8.25 per week, over a period of six years.

Minister for Economic Services Josef Bonnici said the agreement will increase the shipyard's productivity and efficiency. He added the collective agreement is in line with the Malta Drydocks business plan.

Drydocks chairman Noel Zarb Adami said the agreement is aimed at increasing the 'yard's workload by attracting foreign clients to Malta. GWU officials Mario Cutajar and Tony Coleiro said the collective agreement will eliminate certain work practices, which were passed from one generation to another. Mr Coleiro described the new collective agreement as a major challenge and an opportunity for the workers to prove themselves.

"The drydocks workers will rise to the occasion," he said.

Prof. Zarb Adami said that the agreement with the US Navy does not mean that ship repair work from Libya will stop. He added that on the contrary, more work from Libya is be guaranteed by one of the country's leading companies, GNMTC. At present GNMTC owes the Drydocks $12m. Negotiations are underway for these arrears to be paid to the 'yard.

"While negotiating with us how the $12m will be paid, the Libyans are insisting with us that the Malta Drydocks should still accept work from Libya," said Prof. Zarb Adami.