Sea Malta liquidated after failed privatisation bid

Abstract

Privatisation of the national shipping line Sea Malta fell through in November 2005, despite 16 months of intense negotiations, because the General Workers’ Union failed to meet a deadline set by the prospective buyer for agreeing new working conditions for seafarers. This resulted in the Maltese government liquidating the shipping line in December. Sea Malta Company Ltd, an enterprise with majority state ownership, operated transport services to and from Malta within the Mediterranean Sea. The company, which employed around 144 workers, served the national economy by providing sea transport services for the local manufacturing and retail enterprises. In line with its privatisation policy, government decided to divest itself of ownership of the enterprise (MT0507101N (//www.eurofound.europa.eu/ef/observatories/eurwork/articles/gwu-warns-against-joblosses- arising-from-sea-maltas-privatisation)). After a year and a half of negotiations, on 21 October 2005 the Maltese government signed an agreement with a prospective buyer, Atlantica SpA (part of the Grimaldi Group), for the transfer of its 69% shareholding in Sea Malta to the Italian company. However, the agreement was subject to Atlantica SpA reaching another agreement with the General Workers’ Union (GWU (http://www.gwu.org.mt/)) about the working conditions of Sea Malta employees.