Wages policy at Malta drydocks : analysis of an ambivalence

Abstract

Relatively high and fixed wage rates in a self-managed firm operating with chronic non-profitability may read as economic nonsense. This is however the present reality of Malta Drydocks, and a matter which has been for some time at the forefront of public debate. Unfortunately, the argument has been both simplified and polarized by partisan statements, making it difficult to break through the cliches and to seek an objective analysis of the situation. This paper attempts to serve as a valid contribution towards a cool, dispassionate discussion of the Drydocks condition. It probes into the apparent ambivalence which surrounds the sensitive issue of what is herein referred to as 'wages policy' - namely, the determination of wage rates and wage structures and their relationship to enterprise productivity and profitability.