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Air Malta: Chairman’s Contract Under Wraps

Air Malta Chairman’s Contract Under Wraps
by
July 6, 2023
in Business News, Tourism
236

Air Malta, the national carrier of Malta, has been in the spotlight recently due to allegations of discrimination and lack of transparency surrounding the chairman’s contract. Former employees are claiming that their salaries in alternative government jobs are significantly lower than those of their new colleagues. Meanwhile, Finance Minister Clyde Caruana, who is overseeing the closure of the airline, has refused to disclose the financial package arranged for David Curmi, the politically appointed executive chairman. These actions have raised concerns about accountability and fairness within the airline and government.

The Secrecy Surrounding the Chairman’s Contract

The financial arrangement between the Finance Minister and David Curmi, the executive chairman of Air Malta, has been shrouded in secrecy. Despite requests for transparency, the Finance Ministry has declined to disclose the details of Curmi’s contract. The ministry’s response to a freedom of information request indicates a desire to consult third parties before making a decision. This lack of openness has fueled speculation and criticism, with many viewing it as an attempt to divert attention from the chairman and avoid further scrutiny.

Allegations of Discrimination by Former Employees

Former Air Malta employees who were given alternative employment within government entities are now claiming discrimination. These employees, numbering 229, argue that their salaries in their new positions are lower than what was agreed upon in their termination agreements with the airline. Despite being deployed to various government jobs across different entities, they find themselves earning less than their colleagues performing the same tasks. This discrepancy has raised concerns about equal pay for equal work and has drawn attention from opposition politicians.

Minister’s Evasion of Responsibility

Finance Minister Clyde Caruana has been accused of evading responsibility for the treatment of former Air Malta employees. When questioned about the alleged discrimination, Caruana shifted the blame to Resource Support and Services Limited, a government company under the direct responsibility of Prime Minister Robert Abela. By distancing himself from the issue, the minister has avoided providing a direct explanation for the pay disparity and has left the affected employees without satisfactory answers. This lack of accountability has added to the growing discontent among former Air Malta staff.

Plans to Close Air Malta and Create a New Airline

Caruana and Curmi have put forward plans to close Air Malta, likely after the summer period, and then attempt to establish a new airline from scratch. This strategy is accompanied by a shift of political blame to the European Commission for not approving another State Aid request. The closure of Air Malta will result in the redundancy of all remaining staff, and the new airline will offer working conditions similar to those of low-cost carriers. This decision has raised concerns about the future of the airline industry in Malta and the potential impact on the employees.

Conclusion

The lack of transparency regarding the chairman’s contract and the allegations of discrimination against former Air Malta employees have cast a shadow over the airline and the government. The refusal to disclose important financial details and the evasion of responsibility have created an atmosphere of mistrust and dissatisfaction. It is crucial for the government to address these concerns, ensure fair treatment of employees, and promote transparency in its dealings. Failure to do so risks further damaging the reputation of Air Malta and eroding public trust in the government’s actions.

FAQs

Why is the chairman’s contract being kept confidential?

The chairman’s contract is being kept confidential, raising concerns about transparency and accountability within Air Malta and the government.

What is the significance of the Finance Minister’s involvement in the airline’s closure?

The Finance Minister’s involvement in the closure of Air Malta highlights the government’s role in the decision-making process and the financial implications associated with the airline’s operations.

How are former employees affected by the discrimination claims?

Former Air Malta employees claim they are experiencing discrimination due to lower salaries in their new government positions, compared to what was agreed upon in their termination agreements.

What is the opposition’s stance on the discrimination allegations?

Opposition politicians have voiced their concerns regarding the alleged discrimination, emphasizing the importance of equal pay for equal work principles.

Is there any evidence supporting the discrimination claims?

The claims of discrimination made by former employees are based on the comparison of their salaries with those of their colleagues in similar roles within the government entities they were redeployed to.

How is the Finance Minister responding to the criticism?

The Finance Minister has evaded direct responsibility for the discrimination allegations, shifting the blame to a government company under the Prime Minister’s jurisdiction.

What are the implications of the lack of a chairman’s contract copy?

The absence of a copy of the chairman’s contract raises concerns about proper governance and oversight within Air Malta, leaving room for speculation and mistrust.

How are current and former employees expressing their dissatisfaction?

Many current and former Air Malta employees have expressed their dissatisfaction through various channels, including engaging with opposition politicians and sharing their grievances publicly.

What are the potential consequences of the closure of Air Malta?

The closure of Air Malta can result in job losses, reduced connectivity for travelers, and potential negative effects on Malta’s tourism industry.

How does the closure plan affect the employees’ morale?

The closure plan has significantly impacted employee morale, as they face uncertainty about their future employment prospects and concerns about the fairness of the transition process.

Is there a plan in place to support employees affected by the closure?

It is essential for the government and Air Malta to develop a comprehensive support plan for employees affected by the closure, including job placement assistance and fair compensation.

What alternatives have been considered instead of closing the airline?

It is unclear what alternatives have been considered, as the focus has primarily been on closing Air Malta and creating a new airline.

How will the new airline differ from Air Malta?

The new airline is expected to offer working conditions similar to those of low-cost carriers, signaling a potential shift in the operating model and cost structure.

What impact will the closure have on Malta’s reputation in the aviation industry?

The closure of Air Malta and the subsequent creation of a new airline may affect Malta’s reputation in the aviation industry, potentially raising questions about stability and long-term commitment.

What role does the European Commission play in the closure plans?

The closure plans include shifting political blame to the European Commission for not approving another State Aid request, which could influence the decision-making process and the future of the airline.

How can the government restore trust and transparency in this situation?

The government can restore trust and transparency by promptly addressing the concerns raised, providing clear explanations, and ensuring fair treatment for employees affected by the closure.

Are there any ongoing investigations into the chairman’s contract or discrimination claims?

It is unclear if any investigations are currently underway into the chairman’s contract or the discrimination claims made by former Air Malta employees.

Will the closure of Air Malta impact ticket prices for flights in Malta?

The closure of Air Malta could potentially impact ticket prices, as reduced competition in the market may lead to fewer options and potentially higher costs for travelers.

What steps can be taken to prevent future instances of discrimination in employment?

To prevent future instances of discrimination, it is crucial to establish and enforce policies that promote equal pay and equal opportunities for all employees, regardless of their background or circumstances.

How can the government address the concerns of disgruntled employees effectively?

The government can address the concerns of disgruntled employees effectively by actively listening to their grievances, conducting thorough investigations, and taking appropriate actions to rectify any unfair treatment or discrimination. Open communication channels and transparent processes are key to resolving such issues.

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