Employees face pay cuts as new investment looms at ST

The agreement reached by the government and ST Micro-electronics which saw the company increasing its investment in the island, comes in the wake of intense discussions within the General Workers Union on whether to accept significant cuts in allowances paid to the work force.

According to GWU Section Secretary Anthony  Mizzi the cuts  proposed by ST in April would have resulted in a €1900  annual reduction in workers’ take home pay.  But this amount was reduced in subsequent negotiations.

When contacted Anthony Mizzi confirmed that the General Workers Union is presently holding meetings with workers to discuss the package offered by St Electronics. He made it clear that a final decision will be taken by the workers themselves in a secret ballot.

Asked by MaltaToday whether the agreement reached between the company and the government is conditional on the union  accepting the management proposals, Minister Tonio Fenech replied that the government is aware that discussions were also on the new collective agreement.

Fenech praised the role of 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." The government has not revealed the scale of the new investment through which the company will start producing microchips which can be used in mobiles and computer games.

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