Dedicated Micros gets government assistance

As the recession bites deeper, the government yesterday announced a financing agreement with Dedicated Micros Ltd in a bid to secure the jobs of 170 employees.

Finance Minister Tonio Fenech did not disclose the size of the financial package, insisting that safeguarding jobs was the government's top priority at the moment.

Dedicated Micros is the fourth manufacturing firm to benefit from such assistance in return for retraining staff and investing in newer technologies.

Negotiations continue with another eight companies, which have been hit by the recession, to determine the type and extent of assistance that can be provided.

The employees at Dedicated Micros would be reverting back to a normal five-day working week after the company's management agreed to transfer new operations to Malta. They had been on a four-day week since Easter Monday.

All jobs would be retained and for the next four months the government would be financing the fifth working day through training schemes offered by the Employment and Training Corporation.

"I am unable to divulge the commercial agreement entered into with the company but all assistance is within the framework of EU regulations. We are converting tax credits into partial support and offering training assistance through the ETC," Mr Fenech said.

The company is foreign-owned and employs about 500 people worldwide. Earlier this year it announced plans to reduce its global workforce by 10 per cent.

Dedicated Micros Group finance director Andrew Finn said the company would be investing €300,000 in its Malta operation bringing over new production lines after the group purchased a UK company recently. It would also transfer some back office work to Malta.

Apart from retaining all workers on its payroll, Mr Finn said the new operations would possibly require the recruitment of 10 new employees.

Dedicated Micros in Bulebel has been operating in Malta since 1991 and produces security and surveillance equipment. It is one of a number of factories in the manufacturing industry that suffered a drop in orders as an effect of the global economic crisis.

The firm was the latest in a string of companies that opted for a reduced working week over the past few months.

Last month, the Dragonara Casino placed its operational staff on a four-day week plus one day forced leave to ensure they retained their basic salaries.

Earlier, 200 Carlo Gavazzi workers went on a four-day week as a result of a drop in orders.

Methode Electronics, Trelleborg Sealing Solutions and Stainless Steel Products had also placed their employees on a four-day week in the past weeks but they later received government assistance, going back to normal working hours.

In February, ST Microelectronics said it would be cutting its workforce in Malta by 400-450 workers through layoffs and natural wastage.

ksansone@timesofmalta.com