ST agrees to give pay rise to workers

The GWU said today that the management of ST Microelectronics had agreed to pay the workers a salary increase agreed in the collective agreement.

The increase was supposed to have been given as from April 18, but it has now been confirmed that the increases will be included in the May 2 pay.

The union said the pay rises were not linked to any conditions made by the company.

It said it was awaiting a date for talks on the current situation of the company so that existing problems could be overcome.

ST, the largest private sector employer in Malta, is reportedly under pressure because of the weak dollar.

Comments

ALBERT FENECH (2 weeks, 6 days ago)

I am an employee at STMicroelectronics (Malta) Limited. I would like to make it categorically clear that I am writing on my own behalf, giving my own personal opinion and in NO WAY representing the Company, besides which I am strictly NOT AUTHORISED to write on behalf of the Company. Your statement that ST Malta is "reportedly under pressure because of the weak dollar" is only a very slight percentage of the truth. The Company has been telling its employees (as well as all and sundry) for many years now (even BEFORE the start of the new Millennium and for those who care to listen properly) that the real threats to the Company operation in Malta are the rising labour costs. ST Malta's manufacturing rivals are all located in the Far East, including China, where the labour cost is a mere fraction of the Malta costs. It takes no genius to therefore realise where the problem really lies. Suffice to say that over the last 12 months ST Malta has reduced its labour force by about 400 personnel and the minimal trickle of employees that have been engaged in the meanwhile are either extremely essential personnel or are otherwise replacements to maintain the production line chain. An STMicroelectronics plant in Morocco, manufacturing similar type devices to the Malta Plant, has already been closed down.

The Government and the GWU should know that the real issue is the heavy differential loss that the Malta Plant is incurring on current labour costs. The GWU itself during the last week gave many employees a copy of a letter sent to them by the Company where this loss that the Malta Plant Operation is enduring is stated to be in the region of $US 56 MILLION. Will any sensible and sane shareholder continue to carry this loss - including those who operate local businesses - without taking drastic action?

ST Malta personnel are far from being at ease as to what may transpire over the coming months. The feeling of insecurity is paramount and very real. I do not aspire to speak on behalf of all employees, but I can assure you that the majority are really worried that a short term gain could mean longer-term tragedy.

I need not state that this Plant, currently employing 2,100 persons, is a vital artery of the Maltese economy and should not be allowed to become a political football because ultimately it will be a tragic loss for all of us - not only the employees.