GWU warns of action at STMicroelectronics

The General Workers' Union registered an industrial dispute with ST Microelectronics, accusing the company of failing to pay its workers wage increases and bonus they were promised.

The union said the wages increases had been agreed upon in a 2006 collective agreement and were scheduled to come into force on April 1. It warned that if the company - which two months ago announced it would be cutting its workforce by up to 450 - persisted in not paying, the necessary action would be taken to safeguard the workers' interests.

It wrote to the Finance Ministry and to the Director of Employment and Industrial Relations asking for a conciliation meeting.

ST Microelectronics human resources manager Tonio Portughese said when contacted he would not comment on the matter.

In February, ST Microelectronics said it would be cutting its workforce in Malta through layoffs and natural wastage. With a payroll of 1,927, the redundancies account for 23 per cent of the workforce. Between 250 and 300 jobs are expected to be lost either through retirement or the non-renewal of temporary contract workers.

The planned layoffs came in the light of several companies, such as Methode Electronics, Trelleborg Sealing Solutions and Stainless Steel Products, that ordered their workforce to a four-day working week. These later returned to a five-day working week after receiving government aid.