Updated – ALPA reaction
In a statement published this evening, national carrier Air Malta has confirmed that the current situation which has resulted in the cancellation of practically all commercial flights, and in consideration of the failure of the Unions representing its employees to accept wage cuts, it will be making a number of employees redundant.
Air Malta will be laying off all 188 employees on an indefinite contract, 139 members of the cabin crew team and 108 pilots.
The airline said that the COVID-19 global crisis led Air Malta to ground the majority of its fleet as a result of various restrictions imposed on major airports around the world, including Malta International Airport to help contain the spread across countries. It added that the COVID-19 outbreak has substantially affected the Company. Not only have its operations dwindled to a mere 2 flights per day (as opposed to the scheduled average of 20 daily flights) but the extraordinary amount of cancellations, and therefore reimbursements, together with the obligation to continue servicing fixed costs, such as aircraft lease payments, have led the Company to necessitate mitigation of costs, including payroll costs.
Air Malta explained that it had offered Unions representing different sections of company employees, the minimum floor of the average pay of the last twelve months, capped at €1200, as basic monthly income which would be applicable for all those on indefinite and definite contracts, meaning that all employees, including staff at head office, engineers, cabin crew, and pilots would get a minimum income of €1200 monthly even if they are not required to operate and stay at home. This would have also meant that no employee is made redundant and that those employed on a definite contract would also have been retained in employment. The offer also specified that if compensation for actual work performed would (in terms of the applicable collective agreement) result in compensation in excess of €1200 in a month, they would be remunerated on the basis of the actual amount due in terms of the applicable collective agreement for the work performed.
Despite the company having offered the same proposal to all Unions representing different sections of its employees, it was only Engineers union who accepted this proposal, the statement said.
As a result, the Company said this evening that it regrettably had to announce to its workforce that a number of employees falling under the collective agreement signed with the UCC and ALPA will be made redundant due to the current circumstances and the failure to reach agreement with the same Unions on cost mitigation measures which could have avoided such redundancies.
This was communicated to both ALPA and UCC in an official communication letter sent to the them and the Director General for Industrial and Employment Relations, in accordance with applicable legislation.
UPDATE: In a response to the airline’s statement, ALPA said that contrary to media assertions in recent days, ALPA has not refused any proposals which would require sacrifices from its members, resulting from the Covid-19 predicament.
In 2004, ALPA members had their salaries slashed and subsequently frozen for a number of years due to other negative world events.
ALPA insists that the burden of the current situation must be borne equally by all employees from the very top to the bottom. ALPA is willing to carry its fair share of the burden, after ensuring that the process of meaningful and effective consultation has been duly carried out. Air Malta resorted to informing the DIER about redundancies without effectivel exploring other possible avenues and instead presenting ALPA with a fait accompli. Airlines around the globe held meaningful consultations with their pilot associations which resulted in agreements being reached amicably.
The union of the pilots said that the airline’s management, most notably the CEO Mr Clifford Chetcuti, did not come clean and tell his workforce up front about his salary cuts and perks, like most other respectable CEOs around the globe have done. “His lack of transparency is creating negative undercurrents within the workforce and is raising the ire and suspicion of most. ALPA demands answers as to managements pa cuts to ensure fairness across the board and insist that management should lead by example”, added the union.
The pilots also demanded to be informed about what the post-Covid 19 scenario entails.
“After carrying such a heavy burden, employees deserve to know the company’s plans for the future. ALPA will also seek clarity on how Air Malta is honouring other third-party contracts, such as aircraft leasing, and follow up on ALPAs proposals intended to cushion the negative impact on all emploees financial commitments.”
ALPA urged the CEO Mr Clifford Chetcuti to come clean about his percentage pay cut from his alleged 300,000 salary excluding perks, before asking his pilots to take up to a 90% pay cut, and to explain the reasons why in such a situation the employees must shoulder the burden, when his team was duty bound to shield the employees from the effects of such a calamity, in the first place.
ALPA also questions the wisdom of leaving just enough pilots to man only two aircraft when Air Malta is going to be crucial to rebuild a badly shaken tourism industry.
Air Malta / ALPA
