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ST workers face ‘Hobson’s choice’ and accept austerity measures to save their jobs
At the end it was a ‘Hobson’s choice’ for ST Microelectronics workers who voted to acceptea revised package of austerity measures agreed between the company and the GWU.
26 July 2010, 12:00am
Karl Stagno-Navarra
Karl Stagno-Navarra
1 min read
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.
A secret postal ballot was held over the weekend and the votes were counted at GWU headquarters this afternoon.
There were 620 votes in favour and 230 against.
This was the second vote on the proposed austerity measures. The original measures were overwhelmingly rejected by the workers. Of 542 who had cast their vote, only 29 voted in favour.
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.
Sources close to ST Microelectronics told MaltaToday that the new energy tariffs spelt an increase of more than Euro60,000 a month for the company.
Alfred Galea •
I don't think that would have happened during a PL govt. for the simple reason that the union would have been involved in the talks between ST and the govt. After all the employees are the ones to be affected the most and ONLY the union represents the employees.
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Ma nahsibx li seta' kien hawn ghazla ohra fil-kuntest kollu. Iebsa ghall-haddiema, izda kienet tkun iktar iebsa bil-kontra. Izda fit-tul "ma rridux noholqu tarzna ohra" u imissna ilna nahsbu fuq dan, izda mhux ghalakemm thollha dil-kobba
Mark Fenech •
Immagine such a thing happening during a Labour Government. Oh my God I could see the opposition making all sorts of reasoning to say that the Labour Government had betrayed the workers.
This was also not included in PN's electoral mandate that workers would have their wages reduced. But then we find excuses on divorce. As usual two weights and two measures with this government.
Alfred Galea •
It is very tough to accept concessions but I'm glad that cooler heads prevailed. Hopefully when things turn around and ST starts making millions in profit they'll remember the small sacrifice these workers made to save their jobs and the jobs of those on management.
