Mark Micallef
ST workers being told: 'do or die'
Just 29 of ST's workers' voted in favour of the austerity measures in a GWU poll. Photo: Chris Sant Fournier.
ST Microelectronics management is telling workers in face-to-face meetings ahead of a second vote on a package of austerity measures that the situation at the Kirkop plant is "do or die".
The management and General Workers' Union (GWU) representatives are meeting workers in small groups to give a "frank briefing" about the situation at the plant and how it developed in the past two years, when the company's future in Malta started being called into question.
"The management is being very frank and basically telling us it's do or die at this point," said one worker, who preferred to remain anonymous. "For the first time, employees are getting the full picture of the situation and how it developed in these past years."
The meetings started on Friday and are expected to continue throughout the week as ST and the union agree on a final package, after workers recently rejected the company's cost-cutting proposals, throwing into doubt investment which the company had announced. ST is Malta's largest private sector employer. 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.
Of the company's 1,500 workers, only 542 cast their vote and of these, just 29 voted in favour.
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 on minimum wage.
Workers are now expected to vote for a second time on a final package, which is being discussed in the aftermath of last week's vote. After the first discussions on Thursday, the GWU said the talks were very positive and appeared hopeful that a compromise would be reached.
Since Thursday, however, the company and the union agreed not to speak to the press.
The latest talks have focused on a revision of the allowance packages which would soften the blow of the austerity measures, estimated to make each employee some €250 to €300 worse off per year.
The size of the investment and the government aid was not disclosed, but industry sources told The Sunday Times it was likely to be somewhere in the region of $20 million over the next two years. ST has invested over $1.1 billion since it set up in Malta in the early 1980s.
The workers' approval would seal a deal that comes after years of negotiations with the government. These were intensified following the 2008 global financial crisis which hit the microchip giant particularly hard.
The company had been asking for financial aid and looking at downsizing the workforce at the Maltese plant by as much as 60 per cent for some years.
It took the plunge after the crisis, reducing 1,000 jobs in the past two years. Early in 2009, prospects were not looking good after the government turned down a request for an aid package that ran into tens of millions of dollars.
But since then, conditions on the international markets improved and the prospect of rising labour costs in Asia made European plants more attractive to the management at the company's headquarters in Geneva.
The deal brokered with the government guarantees the company's presence in Malta for some years with a workforce that is more or less stable at current levels, the sources said.
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M.Cassar
Jul 20th 2010, 10:30
Lets make this clear once for all,the situation is very difficult right now.
The austerity measures are being done to save the company,and sacrifice should be made,BUT the problem is that the sacrifice is not divided between all employees.
The 265 euros that Mr.Mizzi mentioned is the avarage sum,so a 4-shift employee is going to sacrifice around 600 euros and day employees are going to sacrifice less which brings an average of 265 euros.
@Mr Fenech.
The situation right now is that although there are many employees who are saying no to the measures,let's be fair because deep inside every employee would like to say yes and save the company.Let's make the situation a little bit different.
If with these measures the company is going to save around 600,000 euros,and there are 1500 employees,if 600,000 divide by 1500 the sum would be 400 euros.
Beleive me that if ALL employees were asked the 400 euros is going to be reduced from their annum wage,most of the 4 shift employees would definately agree,because if we have to carry a weight to continue the road,the weight should be divided by everyone at the same ammount so that everyone would survive.
ALBERT FENECH
Jul 18th 2010, 19:51
@Mr T. Camilleri
How did you work out the figure of 2,000 euros per annum reduction in take-home pay? Mr Andrew Mizzi, GWU Section Secretary, informed employees last Friday the current proposed reduction was that of approx 265 euros per capita, per annum. In old money that works out to just over Lm100 per capita, per annum. Is that austerity especially when it means taking that reduction to keep your job?
M.Said
Jul 19th 2010, 09:33
for once get something right and be honest, the least.
We all know some simple maths....
8.15euro multiply by 12 months : 97.80euros
6.25/hr multiply 3hrs/month for 12 months : 225euros
so 97.8 + 225 : 322.80 euros deduction for the operator.
Considering technicians and senoir techs have a higher hourly rate, cuts will be much greater!!!!!!
Thanks and regards.
T Camilleri
Jul 19th 2010, 09:45
Mr Fenech, it was on the MEDIA and nobody countered it. Again Mr Fenech, what sacrifices are being made by the management? Are they going to forgo their perks including cars, etc etc etc? As regards austerity, yes Mr Fenech even €1 is an austerity measure because it means that you will be taking home less money for the same or even more work. This is apart from the other government induced austerity measures like keeping the wages the same and increasing all tariffs such as water, electricity, gas, MEPA and others Mr Fenech. So you see Mr Fenech, it's not only reduction in pay that has to be taken into account but also all the other increases in other tariffs which means that workers will be suffering a lot more that what at first meets the eye. No Mr Fenech, the workers have been making too many sacrifices. I also wonder why all this fuss is being made about ST leaving Malta when no one bothered about the Dockyard and other factories workers and even were happy to see them close down. If ST doesn't want to pay reasonable wages then let it go to slave labour countries.
Fenech MD
Jul 18th 2010, 19:39
Sa fejn naf jien, ftit ilu l-ST irceviet xi ghajnuna minghand il-gvern biex tibqa' Malta.
X'sar minnhom dawn il-flus? Min hu accountable ghalihom? Il-gvern ta din l-ghajnuna minghajr kundizzjoni? Dan inxtorbu mill-Management jew intuzaw bhala ghajnuna biex il-kumpanija ma titlaqx?
victor caruana
Jul 18th 2010, 19:26
@Albert Fenech
What We need is real high value added investment. If ST malta really performs in a high value added scenario then the situation of do or die would not arise. ST Malta is a labour intensive operation and ergo....it does not compete on technology but on cheap labour...we are a mouse but surely does not roar at all. it seems you have given up on having real options open to our workers. It is true that we are now having clerks who graduated from university...if that makes you happier...surely an educated workforce.
EMMANUEL ZAMMIT
Jul 18th 2010, 18:43
if every one do a small part things can work.But we cant ask only one part to carry all the problem.lets me logic this time.!
Rocco Camilleri
Jul 18th 2010, 18:30
Allura nghid jien, meta l-azjenda u ohrajn bhala qedien f'sitwazzjoni bhal din, nollilhom id-dawl u l-ilma ? Mela vera ma nafhux x'ahna nghamlu. Nahseb il-Kbir ghadu gej. J'Alla Le, nistennew u naraw, biss jekk wiehed ihares dawra madwaru u jara dan il-bini kollu ghal bejgh u jibqa hekk, ma' tantx ghandu x'jikkunslah. Min jaf kemm flus ghanhom jinghataw lil Banek ?
John Azzopardi
Jul 18th 2010, 18:29
ST Microelectronics will eventually leave Malta. The Maltese worker has became very expensive and has a big union mentality. Today, ST can go anywhere in Asia or North Africa and they will have more profits on their balance sheet. ST is still a big export driver, lose teh company and Malta will suffer dearly. Again, people need to think with their heads not their emotions. If they chose emotion, all of Malta will lose.
A. Borg
Jul 18th 2010, 17:37
Ghamlu kif ghamilt jien hbieb. Ivvutaw iva u kif issibu xoghol ahjar dabru raskhom. Illum jew ghada xorta wahda l-ST trid iddabbar rasha minn hawn.
ALBERT FENECH
Jul 18th 2010, 16:44
As for Mr Victor Caruana, we will now place Malta at the centre of the Universe and we will expand our borders to incorporate the rest of the world and then we can dictate the terms. Peter Sellars once made a film of that reasoning; it was called "The Mouse That Roared". Yes, you guessed, the film was a comedy. Just as in the film, Malta can perhaps declare economic war on the United States and China...for God's sake, get a life.
ALBERT FENECH
Jul 18th 2010, 16:39
As usual, more nonense from those who have not a clue about what is going on at ST. For example, Peter Murray asks whether Management and Directors are experiencing the same "austerity" measures. What "austerity" measures? Secondly, Management make up a fraction of the 1,500 workforce. Perhaps Mr Murray can stop a moment and wrack his brains to ask where is the bulk of the labour cost - in Management salaries, or wages? And so on and on. Misinformed and prejudiced people putting idle and misinformed comments in writing. Mr George Azzopardi expresses concern as to how long ST will remain in Malta. Well, Mr Azzopardi, 60 years ago Malta was ruled by Westminster and nobody in Malta ever conceived this tenure could come to an end - but eventually it did and Malta survived because all the proper props were put in place. Similarly, ST may remain in Malta for another five or ten years, but it will give us time to put props into place. Does he want the props to be taken away now?
For the sake of the 1,500 employees at ST Malta, time and space wasters note - PLEASE DESIST from any further stupid comments.
T Camilleri
Jul 18th 2010, 17:18
No austeruty measures Mr Fenech? Then what do you call around a €2,000 yearly reduction in take home pay? How about the management doing away with their perks including cars, petrol, etc etc?
Carmel Ellul
Jul 18th 2010, 16:36
The question is , would you take an insurance of 1Euro per day as a job insurance?
This is simply a token jesture being thrown at the workers to find out how commited are they to their job. A Euro a day is nothing to a micro increase in productivity and quality when you are dealing with a billion Euro turnover.
My advice to the workers in ST Microelectronics is to call everybody's bluff , accept the offer , and see the truth unfolding.
The company , the politicians , the unions will then be all facing what they promised .
Good luck to you all.
T Camilleri
Jul 18th 2010, 17:19
Are you one of the ST workers Carmel Ellul?
joseph maid
Jul 18th 2010, 16:30
No One knows really what is happening in the STM, better for you all to SHUT UP........
victor caruana
Jul 18th 2010, 15:52
Workers must understand that the country is governed by a very weak pair of hands. They can find no support from a pn government.
this is a weak country...we are at the mercy of foreing investment even if they fleece the worker and base their competitiveness on cheap labour. it is true that it is a do or die situation....because that is the country's reality.
mario mifsud
Jul 18th 2010, 13:59
Peter
These same people are also responsible for mismanagement and wrong decisions in the history of this factory
C.camilleri
Jul 18th 2010, 13:17
The PM today was quoted as saying that unlike other countries Malta was not taking austerity measures. Well what is our largest exporter in Malta ST asking its workers to accept? What about the utility tariffs? What about the price of gas? What about the new road tax rates? Are these not austerity measures?
Anthony Briffa
Jul 18th 2010, 13:30
No Mr. Camilleri these are not austerity measures. These are facts we have to face in this year and age. If one wants to live well, and even in certain cases in luxury, one must pay out of his own pocket for the privilage and not expect others to pay for him. As regards the ST Electronics issue, the workers will be foolhardy if they lose this chance of keeping their place of work going. If ST Electronics continue to invest and produce their might be a time, hopefully in the not so distant future, that conditions will be reinstated and maybe even improved. Nothing can be achieved with closed doors.
T Camilleri
Jul 18th 2010, 15:52
Anthony Briffa yes they are. I wonder whether you would have said the same words were the PL in government.
"The deal brokered with the government guarantees the company's presence in Malta for some years with a workforce that is more or less stable at current levels, the sources said."
Yes, and when they've made God know how many billions profit while squeezing our workers and getting aid from our taxes then they will leave for other countries where they can exploit their workers.
C.Busuttil
Jul 18th 2010, 16:45
Electricity, water and gas are no Privilege or luxury, they are basics needs. While the price of oil has gone down we are the only country in Europe to have increased tariffs. They are a modern subtle version of nissikkaw ic-cinturin of the Mintoff days.
George Azzopardi
Jul 18th 2010, 11:39
I'm very worried about the last paragraph where says it all .. this is just a delay for ST before they eventually leave Malta for good.
Peter Murray
Jul 18th 2010, 11:37
One wonders whether or not the management and directors of ST have also been compelled to commit to these austerity measures and wage freeze that the very people who generate their vast profits and remuneration are constrained to adopt.