O-ring producer Trelleborg yesterday laid off 25 employees just days after dropping its production line to a four-day week. The company, which depends on orders from car manufacturers, has been hit hard by the slump which took over the automotive industry as a result of the international financial crisis.

In fact, the company is among the first publicised local victims of the steady slide into recession along with cosmetics manufacturers Toly Products which laid off 84 workers last week, and Methode Electronics and Hectronic which reduced their working week to four days.

General Workers' Union general secretary Tony Zarb had hinted at the lay-offs on Wednesday, even though he kept the name of the company to himself.

He had said that the original plan was to lay off more than 100 employees but after the union intervened, the number was negotiated down to the 25 who got the sack yesterday.

The company said it had taken a number of measures to try to mitigate the situation over the past few months but in the circumstances was left with no choice but to make the move.

The lay-offs come as rival unions prepare to rally in a historic protest against the new energy bills which, they say, will deal a further blow to the economy which is already facing a gloomy forecast as a result of the international crisis.

The Prime Minister defended the new tariffs in Parliament on Wednesday but said he was confident that a solution to the deadlock would be found.