Minister offers to meet ST workers

The Finance Minister is prepared to meet General Workers Union members to explain the importance of accepting the austerity measures proposed by ST Microelectonics and the significance of its investment.

"The GWU not only understood the importance of the agreement but also managed to negotiate a reasonable package when compared to ST's original demands," Tonio Fenech said.

He urged workers not to lose the opportunity to secure ST's continued presence in Malta, which also meant their jobs would be safeguarded for the coming years.

On Friday, GWU members at ST overwhelmingly rejected the company's cost-cutting measures in a secret postal ballot, days after the government announced ST would be investing in a new production line in return for government aid. Following that announcement, it emerged that the investment was conditional on the new measures being approved.

On Sunday, Prime Minister Lawrence Gonzi appealed for the investment agreement reached with ST not to be "sabotaged" and called on the GWU to show leadership in the matter.

However, the GWU yesterday took Dr Gonzi to task over this statement, insisting he "had the duty" to say who was sabotaging the agreement.

In a strongly worded statement, the union said ST workers did not vote on a new collective agreement, as implied by Dr Gonzi, but on a package of austerity measures proposed by the company.

The GWU defended its actions, insisting its approach was "responsible and democratic".

"It was the Prime Minister and the Finance Minister who undermined everything when they announced the investment the company was going to make at the same time that workers were choosing whether to accept the austerity measures or not," the GWU said.

Mr Fenech admitted to The Sunday Times that the announced investment may have confused workers into thinking the austerity measures were no longer needed. In fact, no mention was made of the package being negotiated when government announced the investment.

The company never made a formal announcement on the investment it plans to make in a new high-end line.

The union said it was committed to safeguard the interests of workers, the company and the country.

"It was the GWU that took the initiative to bring the company and government together to the negotiating table when things were looking bad for ST," the union said, adding it was committed to solving the current impasse.

The union has invited the management for further talks in a bid to make some changes to the austerity measures before submitting them to a second vote. The measures were originally intended to save the company €3 million but were later watered down to €600,000.

Attempts to contact the company yesterday proved futile.

The union has 925 registered employees at ST, of whom 542 cast their vote and only 29 voted in favour of the measures. The company employs over 1,400 workers in all.

The situation that unfolded over the past few days led to an exchange between the Labour Party and the Nationalist Party yesterday.

Labour industry spokesman Carmelo Abela said it was the government that had sabotaged the economy by raising utility prices that led to workers making demands for higher wages, which eroded competitiveness.

He criticised the government for announcing the investment without saying this was linked to austerity measures that the workers were being asked to accept.

In a counter statement the PN rebutted the accusation that Dr Gonzi implied someone was trying to sabotage the agreement.

"The Prime Minister said he hoped the agreement would not be sabotaged," the PN said, describing Mr Abela's statement as putting spokes in the wheels.

"The agreement will save jobs and secure the company's continued presence in Malta," the PN said.

ksansone@timesofmalta.com