The Minister of Finance is to meet a GWU delegation on Friday to discuss the situation at ST Microelectronics.

The meeting was announced by the GWU after the government earlier said Mr Fenech had invited the GWU for talks. The government also denied the impression which it said might have been given in a GWU statement that it had turned down a call by the GWU for such talks.

The GWU said it did not intend to give that impression.

ST, by far Malta’s biggest private sector employer and exporter, has asked the government for a financial support package running into tens of millions of dollars.

The minister, Tonio Fenech, told The Sunday Times last Sunday that while the government had been very generous in terms of investment, it could not be expected simply to subsidise a wage differential which equalled practically the full wages being paid to the employees.

"We are very concerned and keen to ensure the company has a future in Malta. (But) since on an economic level there are job growth prospects, we believe ST's employees can be redeployed in other industries over a short but phased number of years, though, of course, there is the personal and human aspect of potential job losses and movement," he said.

Mr Fenech explained that the government would like ST to further invest in Malta on lines where Asia today cannot compete. Support which the government is offering is linked to a comprehensive restructuring plan to make ST operations in Malta viable in the longer term.

According to observers, the Kirkop plant is facing losses that could reach €58 million (Lm24.9m) a year.