Increases in the utility costs were threatening investment and undermining the creation of new employment, the General Workers’ Union said.

The union said that during discussions between its SMEs section and Nylon Knitting management for the renewal of the collective agreement, it was revealed that the company was presently faced with an additional cost of €2 million in water and electricity bills as a consequence of the increases in utility tariffs.

During the meeting, it became evident that the burden caused by the new utility tariffs hindered greatly the progression of talks between the union and management.

The GWU was also informed that the company was reconsidering the implementation of the final stages of the investment planned so much so that the said investment was now in danger of being shelved.

Nylon Knitting is one of many others, including ST, Toly Products, General Soft Drinks and Trelleborg that were rethinking their investment in view of the consequent difficulties they are facing by the new utility tariffs imposed by the government, the GWU said.

Apart from the additional costs caused by the new utility tariffs, the situation for the local industry worsened further with the announcement of a €28 increase per tonne of thin fuel oil, mainly used by industry.