As new investment looms at ST, new agreement talks of cutting pay for employees

The new investment – the amount of which was not disclosed – includes the installation of state-of-the-art equipment that will now enable the Malta plant to produce latest technology microchips for worldwide use in mobile phones and computer games.

But news of the agreement has coincided with discussions on the new collective agreement for workers.

When contacted, GWU Section Secretary Anthony Mizzi confirmed that the General Workers Union is presently holding meetings with workers to discuss the conditions offered by St Electronics.

He made it clear that a final decision will be taken by the workers themselves in a secret ballot.

According to Mizzi, the company did not propose any cuts in wages.  But the cuts in allowances proposed in April would have resulted in an annual 1900 reduction in the take-home pay of workers.

“Following negotiations, we have managed to reduce this amount,” Mizzi told MaltaToday.

Asked by MaltaToday whether the agreement reached between the company and the government is conditional on the union to accepting the management proposals, Minister Tonio Fenech replied that the government “is aware that discussions were also underway with the Union to have a collective agreement that improves flexibility and productivity of the Malta plant.”

According to Fenech, this is part of the restructuring process undergone by ST, in its attempts to improve the Malta’s competitiveness, adding that multi-national companies like ST “base their investment decisions on a number of factors, including labour cost and productivity.”

Fenech also praised the General Workers Union for having cooperated in ensuring that ST Malta continues to offer a viable option for future investment.

“I believe that the workers appreciate this and will support the Government and the Union in their efforts to retain ST in Malta.”

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