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Unions urge action on Izar contracts.
(From Lloyds List)
Byline: Fears over Brussels ruling on state aid delays government rescue moves, writes Brian Reyes in Gibraltar
SPANISH unions have urged the government to reopen negotiations with shipowners to try and secure work for struggling state-owned shipbuilder Izar.
The government put all contract negotiations on hold following the recent ruling from Brussels on illegal state aid, with sources in Madrid suggesting that officials wanted to clarify the group's future before signing up new business.
The contracts under discussion included a lucrative order for two gas carriers for Greek company Tsakos Energy Navigation, as well as long-running negotiations with US-based FastShip, among others.
An inter-ministerial commission is currently drawing up a rescue plan for Izar, but senior union representatives have warned that the lack of future contracts is exacerbating tensions and could lead to labour unrest.
Candido Mendez, secretary general of leading union UGT, delivered that message to Spanish president Jose Luis Rodriguez Zapatero during a meeting last Tuesday.
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