It is still not clear whether ST Microelectronics is to shed jobs at its Malta plant as a result of a restructuring exercise taking place within this European semiconductor giant, union officials have told The Times.

The news that ST is to cut 3,000 jobs from its workforce outside Asia by mid-2006 in a cost-saving exercise was first reported in the foreign press.

The company announced it aimed to save an additional US$90 million and expects to take a restructuring charge of between US$100 million and US$130 million as part of the new initiatives.

ST Microelectronics is one of the most important local manufacturers and revenue-generating exporting companies.

Speaking to The Times yesterday, General Workers' Union technology section secretary Andrew Mizzi, who represents local ST Microelectronics employees, said talks with the local management were on hold for the time being. However, the union is to be involved in the restructuring talks with the management of the local plant once the corporate management announces in which region employees are going to be laid off.

Mr Mizzi said the union had not been given a guarantee that jobs at the Malta plant would not be touched, adding the GWU would be working to avoid any layoffs.

By law, the section secretary said, the management have to meet the unions in the different regions before deciding to reduce the workforce.

"They also have to prove that dismissals are necessary to restructure," Mr Mizzi said.

Calls made to the ST Microelectronics management yesterday were not returned.

ST Microelectronics chief executive officer and president Carlo Bozotti came to Malta last Friday and addressed day workers at the plant.

Mr Bozotti spoke of the global restructuring process that ST needed to undergo.

Speaking of redundancies, Mr Bozotti said these were inevitable, but said it was not yet decided in which plants the lay-offs would have to be made, Mr Mizzi said.