The security printing firm De La Rue, which has 600 employees, is to be restructured as part of the company’s efforts to make its global operations more viable.

The fact that we’re talking of 600 people makes it a national issue

The employees have been informed that the Malta plant needs to become more competitive and negotiations are under way with the General Wor-kers’ Union.

Andrew Mizzi, the GWU’s section secretary, said downsizing or total closure of the plant were possibilities if targets were not met.

He said a proposal had been made to reduce take-home pay, with cuts in overtime, allowances and bonuses. Despite the threat of downsizing, no numbers were discussed, he added.

A company spokesman said the Malta plant was just one of its factories where the restructuring would take place.

“The De La Rue factory in Malta started operations in 1975 and the working practices established were appropriate for the prevailing market conditions at the time.

“Since then, there have been considerable changes across the security print industry with new companies entering the market, resulting in pressure on both De La Rue and other manufacturers to reduce costs in order to remain competitive.”

In response to these changes, the company had begun implementing a restructuring programme “designed to reduce costs across all its manufacturing sites”.

This, the spokesman said, had resulted in negotiated changes to working practices at a number of its sites to accommodate the specific requirements of the security print industry, including building in the flexibility to handle peaks and troughs in demand.

In the United Kingdom, for example, manufacturing of some products was consolidated into a smaller number of factories resulting in some site closures. The company closed two of its five plants in the UK.

He said the company management was working closely with union representatives to achieve this competitiveness and had informed its factory workers in Malta on the need to change the current “restrictive” working practices so the plant could continue being competitive.

He said it would be inappropriate to discuss further details in light of the negotiations taking place with the union.

The GWU said it had roped in the Government and Opposition in a bid to find a solution to the problem and has already had a meeting with Labour Leader Joseph Muscat.

“The fact that we’re talking of 600 people makes it a national issue,” Mr Mizzi said.

He said the company was looking at the cost of production compared to its plants in the UK. It also has plants in Bangladesh and Sri Lanka, among other countries.

There was a time when the Malta plant was responsible for 45 per cent of the company’s total production but costs had been rising.

However, even if the company had to make people redundant, this would not be immediate, Mr Mizzi said. The Malta plant was not out of work.