The government and the General Workers’ Union discussed the situation at ST Microelectronics at a meeting this morning and later issued a joint three-paragraph statement saying they had agreed to work together on this issue in the interest of the country and the workers.

It was pointed out that the government had already made proposals to the company, but no reply had been forthcoming.

“The GWU was informed about these proposals, and therefore at this stage there is nothing more to say.”

The two sides urged the media to avoid speculation which, they said, could only harm the workers.

The statement was signed by Finance Minister Tonio Fenech and GWU general secretary Tony Zarb.

The Sunday Times reported last Sunday that ST, by far Malta’s biggest private sector employer and exporter, has asked the government for a financial support package running into tens of millions of dollars.

Mr Fenech, told the newspaper that while the government had been very generous in terms of investment, it could not be expected simply to subsidise a wage differential which equalled practically the full wages being paid to the employees.

"We are very concerned and keen to ensure the company has a future in Malta. (But) since on an economic level there are job growth prospects, we believe ST's employees can be redeployed in other industries over a short but phased number of years, though, of course, there is the personal and human aspect of potential job losses and movement," he said.

Mr Fenech explained that the government would like ST to further invest in Malta on lines where Asia today cannot compete. Support which the government is offering is linked to a comprehensive restructuring plan to make ST operations in Malta viable in the longer term.