GWU sued for damages

Abstract

In February 2005, Malta Shipyards Limited sued the General Workers’ Union for damages incurred due to industrial action ordered by the union, which allegedly breached the shipyards’ collective agreement. In 2003, the Malta Drydocks and Malta Shipbuilding underwent a major restructuring exercise which resulted in the formation of a new company called Malta Shipyards Limited (MSL (http://www.futuredesign.com/test/shipyards/www)) currently employing about 1,700 workers (MT0312102N (//www.eurofound.europa.eu/ef/observatories /eurwork/articles/restructuring-of-malta-drydocks-and-shipbuilding)). The Minister for Investment, Industry and Information Technology stated that the shipyards’ productivity in 2004 was affected by about seven official and unofficial strikes. In spite of this, 2004 was regarded a positive one as MSL managed to cut its costs by MTL 1.5 million more than anticipated - though its losses still reached MTL 9 million. MSL is presently handling nine projects worth about MTL 2.7 million, but faces tough competition from other shipyards, especially in Turkey, Croatia and China due to lower labour costs.