After failing to reach any agreement with the Union of Cabin Crew and the General Workers Union even after several months of negotiations over the airline’s restructuring plans, Air Malta is now intending to announce its restructuring proposals directly to its workforce.
Air Malta chief executive officer Peter Davies said: “We want the employees to know what the company’s offer is, what their future is, and the consequences of not agreeing to the package.”
Davies also indicated that the delay in reaching any sort of agreement with the unions is now hampering its future plans. To secure its €52 million loan it received from the government and turn the airline around, Air Malta needs to reduce its workforce by about 500 workers and cut costs by some €30 million.
Workers will be informed of the plans from next week. Davies said: “We have put a lot of effort into getting fair and reasonable payout schemes for staff so they can be properly compensated for their loss of employment – the offers we have proposed are generous and treat people fairly.”
He said that, in return, the airline had requested more efficient work practices, such as rosters that support the flight schedule.
If the packages are accepted by employees, Air Malta will withdraw and impose the necessary headcount reduction “following the statutory redundancy procedures and payments”, the airline said.