The GWU has given notice of industrial action at ST Mictroelectronics after talks on a new collective agreement collapsed.

The union said several meetings had been held, some of them in the presence of the Director of Industrial Relations, but the company was insisting that austerity measures which should have ended in 2012 should remain in place. 

The austerity measures were introduced in 2010, when the company was going through difficulties. The measures, including a reduction in pay packets, had been aimed at allowing a breathing space for the company to recover, as had happened.

The measures were supposed to have been lifted in 2012 but the company was coming up with all sorts of reasons to avoid a new collective agreement, the GWU said. 

The company had even refused to honour the collective agreement which was in place before the austerity measures were introduced. 

The union said it had discussed the position with the workers. It said it would continue to call for fair compensation for the workers for the years of austerity, and it had no alternative to industrial action.

ST is Malta's biggest exporter. It employs 1,600 workers.