Union, ST seek compromise

A "positive" meeting was held between the General Workers' Union and STMicroelectronics on the austerity measures rejected by workers in a vote last week.

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

The meeting lasted about three hours and talks between the union and the world's fifth largest semiconductor company are expected to continue today.

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 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-rise freeze for two years and that new employees would start work on minimum wage.

ST employs over 1,400 workers.