ST-GWU to hold more talks today after 'positive meeting' yesterday

Representatives of ST Microelectronics and the General Workers Union are expected to hold another meeting today after having had what was described as a positive meeting yesterday to discuss austerity measures which the company wants to introduce.

Workers last week rejected the company's proposals, throwing into doubt investment which the company had announced.

"It was a very positive meeting and both parties are working with the aim of reaching a compromise," GWU section secretary Andrew Mizzi said about yesterday's meeting.

Refusing to go into detail, Mr Mizzi said STMicroelectronics was willing to discuss the measures and they were "revisiting everything".

Late last month, Prime Minister Lawrence Gonzi announced that the company would be installing a new high-end production line at its Kirkop plant using government aid. No mention of the austerity measures had been made then but when the workers rejected the deal in a secret ballot it transpired the investment was conditional on the package being approved.

The measures, intended to save about €600,000 (negotiated down from a package saving €3 million) in the short term, would also have meant a wage freeze for two years and that new employees would start work on minimum wage.

ST employs over 1,400 workers.