Malta eyeing EU funds for redundant ST workers

The Maltese authorities are waiting to see how STMicroelectronics plans to proceed with its lay-offs before applying for EU funds designed to assist workers who have lost their jobs because of the global economic crisis.

A government spokesman said Malta was actively considering filing an application under the EU's Globalisation Adjustment Fund of €500 million a year but it was still awaiting a concrete plan from ST.

"It is only once STMicroelectronics determines how it will proceed with its redundancies at the Malta plant that it will be possible for the government to establish whether this case makes us eligible for such support," the spokesman said.

However, the government will be doing its utmost to tap EU help for the redundant workers: "If the ST plan falls within the parameters of this fund, the government will definitely apply for funds."

The fund was originally set up in 2006 to tackle European job losses due to globalisation. It is regulated by several technical rules, including minimum thresholds of redundancies and their direct association with globalisation or recession.

This is not the first time Malta has sought to tap this fund. In 2007, it had managed to obtain a grant of €700,000 following the sudden redundancy of 675 workers from two textile factories, VF (Malta) Ltd and Bortex Clothing.

The funds were used to finance 50 per cent of the costs of a number of schemes by the Employment and Training Corporation aimed at helping the workers find alternative employment. The remaining 50 per cent came out of the government's coffers.

In 2006, when negotiations among EU member states to set up this fund took place, Malta had fought tooth and nail to ensure its economy, although small, qualified for it.

The original proposal submitted by the Commission had excluded help for redundancies of less than 1,000 workers in one sector, which excluded the island. Following technical and political submissions by Malta, the EU agreed to lower the threshold for small member states.