GWU urges government to protect jobs at ST

The General Workers' Union believes the government should do everything in its power, including subsidies, to assist ST Microelectronics to cope with the difficulties it is facing, the union's general secretary, Tony Zarb, said yesterday.

Asked whether he was in favour of subsidising the company to sustain its competitiveness in the face of the weak dollar, Mr Zarb said the union was in favour of anything that would save jobs.

ST Microelectronics has asked the government for a financial support package running into tens of millions of dollars as it contemplates closing its Malta plant. The company, which is Malta's largest private employer, with about 2,200 workers on its books, has called on the government to provide it with financial support as it faces rising labour costs.

Mr Zarb said the cost per unit in Malta is about $16 while the cost per unit in Asia is just $2. Maltese workers could not be expected to reduce the cost per unit to just $2 so the government had to do something about it.

The government has already offered the company millions of dollars in investment aid but is still awaiting a formal reaction to its offer. The GWU is waiting for the government to accept its proposal to meet and discuss possible solutions to the problem which, at the end of the day, would affect about 5,000 persons if one were to include the part-timers and service providers.

On the situation at ST, Finance Minister Tonio Fenech told The Sunday Times that the government "has been very generous in terms of investment aid" because it "makes sense from a national, social and economic perspective to support a viable restructuring process". However, if the company were to then move out of Malta in a few years' time, such aid would "not make economic or social sense". The government would like ST to further invest in lines where Asia today cannot compete.

Mr Zarb insisted that the union was in favour of anything that would avoid redundancies. He was speaking during a meeting with Labour Party leadership contender Marie Louise Coleiro Preca who expressed her concern over the situation at the company.

Ms Coleiro Preca said ST employs many young workers who have their own commitments such as home loans.

Another concern, she said, is the situation at Malta Shipyards since many of the derogations Malta obtained prior to becoming a European Union member will come to an end soon.

She said such situations can be solved with effective social dialogue to come up with solutions in the best interest of the country as well as of the workers and their families. Contrary to the impression that is usually given, she said, workers who were made redundant when McNeill, VF and Denim closed down their workers in Malta did not all find alternative employment. Moreover, those who found a job did not necessarily find something that paid as much as they used to earn before.

Ms Coleiro Preca said talks on a social pact had to be approached in a "rational" manner, along with further discussions on flexicurity - flexibility and security.

On his part, Mr Zarb replied that failure to reach agreement on a social pact was not the GWU's fault because what had been proposed would have constituted a burden only to workers.

He said the union is particularly concerned about the rise in the cost of living and the prices of certain essential items, which is also affecting companies. He also spoke about the need for more family-friendly measures that would result in an increase in female employment.