Government insists GWU was kept informed of ST's demands

The government insisted today that the GWU had known from the outset that new investment by ST Microelectronics was conditional on approval of a new collective agreement.

In a statement issued in the wake of statements by Labour MP Carmelo Abela and the GWU, the Ministry of Finance regretted that an issue involving 1,500 jobs was being politicised.

It said that in the talks with ST led by the government, the GWU was always kept informed of developments. ST made it clear that the old collective agreement had rendered its plant in Malta uncompetitive and had led the company to consider its position here."

It was worth remembering, the ministry said, that two years ago, ST announced the closure of a number of its factories in the US and elsewhere. It also reduced 400 workers in Malta.

When the government intervened in order to retain ST in Malta and encourage new investment, the company made it clear to the GWU and the government that it would not consider new investment unless the collective agreement was discussed.

After 18 months of talks between the government and ST, agreement was reached on new investment in advanced technology backed by government support.

At the same time, talks were being held between the GWU and ST on a revision of the collective agreement which would enable the Maltese ST plant to remain competitive.

"Not only did the GWU realise the importance of reaching an agreement, but it managed to negotiate a very reasonable package when one considered ST's initial demands," the ministry said.

It said that the government was therefore calling on the workers not to lose this opportunity to secure their future with ST Malta for the coming years.

The ministry said it was surprised that the union was giving the impression that the government should have told the workers about the company's proposals. The union, it said, had always stressed that it was the one that represented the workers and communicated with them.

The announcement, by the government, of the company's investment was meant to be a signal to the workers that in the context of a re-negotiated collective agreement, the company was ready to invest and commit itself to Malta.

The ministry said that Finance Minister Tonio Fenech had offered his support to the union for what had been negotiated, adding that he was prepared to address the workers in a meeting organised by the GWU to explain the importance of this agreement which guaranteed the future of ST in Malta and the jobs of the workers.