Issue No. 300

20 - 26 July 2000

editorial

Kalaxlokk again

Last week's march into Valletta by a large number of Malta Drydocks, Malta Shipbuilding and Kalaxlokk workers was completely uncalled for. The demonstration was led by the General Workers' Union and held in support of the union's stand in its dispute with the government over Kalaxlokk. First of all one must condemn, in the strongest possible terms, the attacks against a number of journalists by some of the demonstrators. Such incidents are an attack against the free press and democracy and disgrace us as a nation. It is indeed regrettable that neither the General Workers' Union nor the Malta Labour Party saw it fit to condemn the incidents.

One must also question why workers from Malta's 'yards were marching into Valletta when the GWU's dispute with the government concerns the Kalaxlokk company. What has the Malta Drydocks and Malta Shipbuilding got to do with Kalaxlokk? It is true that all three have one thing in common: they are a major burden on the taxpayer and they all rely on millions of liri from public funds in order to survive and to maintain their outdated work practices. This makes the sight of them demonstrating together for more taxpayers' money even more unfortunate. These employees were meant to have been earning their salaries - instead they were causing havoc in Valletta and making the grave financial situation in their respect corporations even worse.

The dispute over Kalaxlokk arose because the company was experiencing serious cashflow problems and was unable to pay its employees. These have now been paid but it is no secret that there is very little work for the company. In most other countries the company would have been liquidated some time ago; after all it had originally been set up to help in the construction of the Malta Freeport which has since been completed. However, in Malta things work differently.

Kalaxlokk workers, who have had the luxury of receiving their pay cheque at home for six months because there was no work for them, have been offered alternative work with the private sector. Incredibly, this was refused because they wanted to keep their anachronistic work practices such as retaining half days and working under the supervision of Kalaxlokk foremen! How immoral considering the financial situation the country finds itself in!

Action needed

Most of the public is simply fed up with the attitude of the General Workers' Union towards the problems of Kalaxlokk, Malta Drydocks and Malta Shipbuilding. All three use ridiculous work practices which are at the root of the problem. People, especially people in business, do not want to hear GWU secretary general Tony Zarb say that he is ready for a "long hot summer" over an issue such as Kalaxlokk, which has already cost the taxpayer a good deal of money. Mr Zarb should enter the real world where salaries are earned only if productive work exists. He should also understand that employment for life is a thing of the past and that work practices have to change with the rest of the economy.

The basic truth about Kalaxlokk is that it is not a viable company in today's circumstances and the government and the GWU both know this. It is about time that the taxpayer is relieved of this burden. This government has tried to give Kalaxlokk workers a reasonable alternative - work with the private sector with a decent pay and, naturally, different conditions of work. The offer has been refused. Does the government have a moral obligation to keep on pumping taxpayers' money into an unproductive corporation such as Kalaxlokk? We think not. Eventually the government has to have the courage to admit that it cannot afford to keep on subsidising unproductive workers who do no want to help themselves. The longer it postpones such a decision the worse it is for everybody. The same argument can be used for the Malta Drydocks. A row erupted last week, in the midst of the Valletta protest over Kalaxlokk, over an alleged internal report commissioned by the drydocks council which claimed that 850 out of the 2,800 drydocks employees were not needed.

There is nothing new or outrageous about this claim. It is simply a reaffirmation of the 1997 Appledore Report which stated that a number of drydocks employees should be moved from the core ship repair business to a newly set up enterprise section. With the Malta Drydocks still losing millions in taxpayers' money, one hopes that the Appledore Report, three years after its completion, will at last be implemented. What is taking so long?

  © Standard Publications Limited 1999