Sympathy strikes threatened against government’s restructuring policy

Abstract

In August 2005, Malta's General Workers Union threatened nationwide industrial action in sympathy with public employees who are faced with redundancy. The dispute started with a government decision to close a state-owned printing company, which will result in 35 workers losing their jobs. The government recently announced a decision to close down Interprint, a state-owned printing press employing 35 workers. The General Workers Union (GWU (http://www.gwu.org.mt/)) has responded that the government should provide alternative employment to those workers it makes redundant, but the government asserts that it will not continue funding the losses of public entities through taxes. It also maintains that when restructuring of these companies fails, it has no other alternative but to put into practice the redundancy clauses stipulated in their collective agreements. In a meeting with GWU, the government reportedly argued that when a proposed restructuring could reach the desired objectives, the government would be committed to carry it out taking into consideration all aspects, including the impact on workers. However, whenever discussions on the restructuring lead to no viable conclusion, the government would not hesitate to close the enterprise. GWU deems this policy unacceptable and has warned its members that Interprint could be the first among a series of government-owned companies to fall prey to this policy and that other companies might follow suit.