De La Rue to lay off 300 workers

De La Rue workers have been informed that the company will be laying off 300 employees by 2018 after deciding to phase out the printing of banknotes in Malta.

The company – the world’s largest commercial banknote printer and passport manufacturer – will be downsizing its operations in Malta in its efforts to make its global operations more profitable.

MaltaToday understands that the restructuring process will see the security printer terminate the job of 300 workers out of the 550 currently employed.

The company yesterday announced that it will relocate its current security products capability from Gateshead in the UK to Malta, however it did not specify the number of workers it will lay off in Malta.

De La Rue said it will consult the relevant unions and elected representatives, adding that it will invest around €21 million in equipment and skills to create the centre for excellence at De La Rue’s current site in Malta.

“This equates to half the investment being made by De La Rue globally,” it said.

Reacting to the news, General Workers’ Union (GWU) secretary-general Josef Bugeja confirmed that the company is planning to dismiss 300 workers and said the union was in talks with the company.

The union added that it had entered into discussions with the government in an effort to mitigate the impact on employees.

On its part, the Nationalist Party expressed its concern and called on government to intervene and “save all jobs.” The opposition added that at least government should ensure that laid off workers find a new job at the earliest.

But the Ministry for the Economy reassured it was committed to finding an alternative job opportunity to all those employees who through this restructuring will be adversely affected.

The ministry went on "to note with pleasure" De La Rue's expansion of operations and the €21 million investment: "This is the result of discussions with the Government and Malta Enterprise to secure a €21 million investment that will ensure the sustainability of a large number of jobs in the growing Identity and Security Products business."

Echoing the government’s positivity, Labour said the accelerated economic growth will guarantee that the workers laid off by De La Rue will be absorbed within the country economy.  

The British company said the centre forms part of its review to optimise its manufacturing footprint. The restructuring would see the company invest €42.5 million across the group as a whole, with associated restructuring costs of €11.4 million over the next two years.

“As a result of the proposed creation of the centre, and subject to consultation, the current banknote printing in Malta would be phased out. This would result in a number of redundancies and a formal consultation with the affected employees was now underway,” the company said.

The company’s CEO, Martin Sutherland, said the Malta facility demonstrated its capabilities in identity authentication “which is why we have selected it as a centre for excellence. We look forward to working with the team in Malta to grow the business in an increasingly important market.”