The General Workers' Union has welcomed the investment being made by ST Microelectronics but said this should not come at the expense of employees' conditions.

Union section secretary Andrew Mizzi said when contacted that it had been in talks with the company since April 23 over measures to cut back on employee allowances and save some €3 million.

Mr Mizzi said the company had presented some 13 proposals, which among others, did away with the Sunday allowance and the premium earned to work on Saturday and Sunday night.

The union had since negotiated to reduce the amount employees would have to forego, which in turn saw the company's savings shrink to €600,000.

"We have presented these new measures to the employees to see what they think and we should know the outcome next week," he said, adding that he believed the company's austerity measures were a consequence of the new investment.

"Everything is related for the company to be more competitive," he said.

In its statement yesterday the union said it was pleased with the government's declaration that it would help the company continue to invest in innovative technology to strengthen its operation.

But in spite of the good news, GWU said the Prime Minister had failed to mention the austerity measures the company's management was asking employees to take.

This was leading employees to think that part of the new investment would have to be made on condition that they agreed to the measures.

Last Tuesday, ST Microelectronics unveiled state-of-the-art equipment at its Kirkop plant and announced further investment on a new line of products that would place it among the global leaders in microchip technology.

The investment will enable the plant to produce the latest microchips for use worldwide in mobile phones and computer games.

The move was seen as consolidating the company's presence in Malta after fears over its future last year when it had downsized.

ST Microelectronics employs some 1,500 people, making it the largest private sector employer. It is also Malta's leading exporter.

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