Issue link: https://maltatoday.uberflip.com/i/1508940
3 maltatoday | WEDNESDAY • 4 OCTOBER 2023 NEWS Your time is precious, let us take care of your investments. Expert service, accessible from €100 medirect.com.mt 2557 4400 MeDirect Bank (Malta) plc, company registration number C34125, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370). MeDirect Bank (Malta) plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. → direct discretionary portfolio management CONTINUED FROM PAGE 1 Sources at the Playmobil plant in Hal Far said the Malta plant had been reducing its headcount through natural attrition over the past two years. The Malta plant employs hundreds of workers. "People who retired or moved on were not re- placed," the sources said, suggesting the job cuts announced this week are unlikely to impact the Malta plant. In a statement, Horst Brandstaetter Group said the "fundamental restructuring" comes in the wake of "the worst global recession since World War II", triggered by the COVID pandemic and made worse by the Ukraine war and supply chain disruptions. "The company management took this decision after a comprehensive analysis of all divisions and in light of the development of the business and current economic challenges," it said in a state- ment. For the 2021-22 business year, the group report- ed a 2.8% drop in turnover to €736 million. The group said the job cuts will help transform the company into a "lean and powerful, interna- tionally well-positioned company" with strong in- vestment in its core brands. It said it would work with unions and worker representatives to minimise the impacts on em- ployees by encouraging early retirement or trans- fers to other business divisions within the group. In 1958, the company launched the first hula hoop which went on to become a worldwide hit. In 1974, the company developed its flagship plas- tic figures that range from police and indians to pirates, clowns and princesses. Brandstatter opened its first overseas factory in Malta in 1971 when it was known as Brand Inter- national. MaltaToday has reached out to the Horst Brand- staetter Group but no reply was forthcoming. COVID, Ukraine war and supply chain disruptions led to Playmobil layoffs CONTINUED FROM PAGE 1 "Nothing better than being objec- tive," Caruana insisted, "those are the numbers. The numbers don't lie." Tabling the deal reached between the European Union and Air Mal- ta, Caruana said it bothered him that the Opposition debated with bold claims driven by political con- siderations, but no one within the PN asked to see such a deal. "No one asked me!" he shouted when PN MP Ivan Castillo protest- ed. "You only think about the votes you could be winning." In response to an attempt for a point of order by Castillo, Caruana emphasised that the airline's ongo- ing losses were unsustainable. He questioned the feasibility of Air Malta's operations without proper assets, highlighting the new company's ownership of three planes. "The airline's ongoing losses were unsustainable. This is the best de- cision up front, and I say this with the biggest responsibility," he said. Recalling the several discussions he held with unions, Caruana said it was in the midst of one of these discussions, when a union leader said, "will we still be getting the free airline tickets?" "How can you ensure profitabil- ity?" Caruana remarked, "when everyone wants free tickets." He concluded his speech by reas- suring the public that there was no need for panic or alarm and that individuals were responsible for consumer protection and refunds starting November 1. 'An insult to the taxpayer' Opposition tourism spokesperson Mario de Marco questioned the po- tential success of the new national air- line, considering "it will be run by the same people who failed Air Malta." De Marco expressed concern about the lack of confidence in the future, primarily arising from the govern- ment's insufficient communication and information sharing on this mat- ter. He emphasised that everyone de- sired the best for the country, includ- ing a reliable flag carrier. Therefore, it appeared "surreal" for him, when on Monday the prime minister had de- scribed the closure of Air Malta and the establishment of the new airline as "a historic day." "Describing Monday as a "historic day" is an insult to both current and former Air Malta employees," de Mar- co added "as well as to the tourism and financial services sector, which heavily relied on its connectivity." The PN MP highlighted that this declaration also insulted Maltese tax- payers, who would ultimately bear the burden of settling Air Malta's out- standing debts. De Marco pointed out the irony, cit- ing former Minister Evarist Bartolo's remark, that "50 years after the estab- lishment of Air Malta, the country was witnessing its funeral." "Air Malta was not brought down by new regulations but by local political issues," he added. While acknowledging that various administrations could have managed the airline more effectively, De Marco argued that in 2012, the Gonzi gov- ernment had successfully negotiated a restructuring plan aimed at saving Air Malta and restoring its profitability. He noted that initially, progress seemed promising, as confirmed by various statements from Air Malta it- self over the years. Even as recently as January 2020, Minister Silvio Schem- bri had expressed optimism about the airline's recovery. "What happened then? Was Schem- bri lying? Was he dishonest, like his predecessors?" 'Air Malta brought down by local political issues' Opposition tourin spoesman Mario De Marco