Government port reform may affect union revenue

Abstract

In autumn 2004, the Maltese government embarked on an exercise aimed at restructuring the country's current port system. This reform may affect around 800 workers and may also undermine an important source of revenue for the General Workers’ Union, Malta's largest union. Competitiveness has been one of the most recurrent topics in Maltese public debate. As part of a strategy to maintain and enhance Malta’s competitive edge, successive governments since the early 1990s have embarked on restructuring exercises of state-owned or -run enterprises, such as the national airline Air Malta (MT0407101N (//www.eurofound.europa.eu/ef/observatories/eurwork /articles/air-malta-rescue-plan-agreed)), the Public Broadcasting Service (MT0405101N (//www.eurofound.europa.eu/ef/observatories/eurwork/articles/workforce-reduction-agreed-to-savepublic- broadcasting-services)), Malta Drydocks (MT0312102N (//www.eurofound.europa.eu /ef/observatories/eurwork/articles/restructuring-of-malta-drydocks-and-shipbuilding)) and the Malta Freeport (MT0410101N (//www.eurofound.europa.eu/ef/observatories/eurwork/articles/freeportworkers- demand-higher-wages)). This restructuring has very often entailed workforce reductions and a change in work practices. The intention of the current government to reorganise port operations has recently moved into the limelight. The port reform has been on the government’s agenda at least since 2000, when it set up a Ports Consultative Council for with the aim of analysing existing work practices. The government’s declared policy is to eliminate what it claims to be obsolete work practices that tend to increase transport costs. It has, however, declared that it intends to retain the benefits currently enjoyed by port workers.