LONDON: Workers at STMicroelectronics' assembly facility on the Mediterranean island of Malta, have rejected plans for an austerity package. The package was one of the conditions for further company investment in the facility.

The Times of Malta reports that The General Workers Union has called for further negotiations before a second vote is taken. In the meantime, the Prime Minister of Malta, Lawrence Gonzi, on Sunday (July 11) asked the workers not to negatively impact an investment agreement he had reached with the company.

Sources say that PM Gonzi had visited the facility at Hal Kirkop on Malta and seen assembly equipment for micro-electromechanical systems (MEMS) in June. This was the new line of business which, according to agreements, would keep STMicroelectronics on the island, the report added.

The reports did not carry details of how much ST's proposed investment in Malta came up to, or elaborate on the nature of any pre-conditions for that investment. At the time, it was expected that STMicroelectronics would refresh its product lines and maintain the current level of employment at around 1,500 employees.