MEA calls ST agreement a step in the right direction’

The STM workers have voted to accept a revised package of austerity measures agreed between the company and the GWU. If the vote went against, it could have meant the end for ST Microelectronics in Malta, who recently secured an aid package with government. But the multinational cautioned with a clause that specifically bound further investment with austerity measures in a bid to cut costs and be more competitive.

The new package will see workers' salaries drop by €268, and GWU officials who negotiated with ST officials over 15 meetings, had no choice but to report back to their members that it was a “do-or-die “situation they faced and had to accept. The measures will also affect management, who will not be receiving any bonuses and other perks, including a five per cent increase a year.

The MEA said the agreement would help retain existing jobs and to create others both within ST and in other companies as well.

“Both workers and unions were faced with a difficult choice but ultimately the workers opted for the one which is in their interest and that of the company.  In such times of strong globalised competitiveness one must realise that in order to move forward at times one must inevitably make a minor step backwards.  The outcome of these negotiations has been the result of maturity on the parts of the company, the union and the employees,” MEA said in a statement.