9 - 15 August 2001

Irreparable damage to business

by Ivan Brincat

Malta Freeport’s image abroad and business prospects are suffering irreparable damage every time the unions issued directives for strikes at the company.
The Malta Freeport has been hit by strike action twice already this year and this affected its major clients who had to bypass Malta every time. Instead of business stopping in Malta it ended up in Malta Freeport’s competitors’ hands.
Last Thursday, the Union Haddiema Maghqudin issued a go-slow directive after the union and
management failed to reach an agreement on wages in the collective agreement which expired a year before.
Malta Freeport chairman Marin Hili has been abroad to visit clients and explain what had happened between Thursday and Friday evening. A total of 12 vessels bypassed the Freeport. Some of the vessels were owned by CMA and P&O, two of the Freeport’s largest clients. Other vessels belonged to Norasia, China Shipping and the Grand Alliance consortium which includes P&O Nedloyd, OO and NYK of Japan.
The matter is made more delicate because Gioa Tauro has lost a major client in Evergreen of Taiwan who have opted to run their own dedicated terminal at Taranto and are desperately seeking to replace this lost business of 400,000 TEUs. Gioa Tauro are in fact presently pursuing the Grand Alliance which uses the Malta Freeport. Malta Freeport chairman Marin Hili told The Malta Business Weekly that the attitude of just going out on strike, then reach an agreement and act as if nothing has happened should stop once and for all.
“If the Unions think that it is nice to sign an agreement after industrial action without considering the repurcussions and the damage, then they are not putting the interest of the workers and the clients first. We are not interested in words but in action and performance,” Mr Hili said.
The Malta Freeport chairman said the go-slow directive might have been taken now before the privatisation process is completed because the Union might think it is in a better position to be tough.
The Malta Freeport workers are among the best paid workers on the island. The Unions’ initial demands were exhorbitant but it is believed that they have agreed to settle for much less than their original request.