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NEWS | Wednesday, 29 October 2008

Methode Electronics goes on four-day week

Up to 200 workers could be laid off


Workers at Methode Electronics will be put on a four-day week as from Monday, with anything between 120 and 200 people liable to lose their jobs at the firm after a 25% cut in its order book.
The company, which manufactures switches for the automotive industry, employs some 650 people.
Methode is the second company to cut its working week after Trelleborg, which manufactures ‘O’ rings for the automotive industry, went on a four-day week earlier this month.
Urgent talks were held between the General Workers Union and the Management of Methode on Monday morning and yesterday afternoon, in an effort to save workers’ jobs.
Initially the company wanted to immediately lay off between 120 and 200 people. But the union and the management reached an agreement on a series of measures aimed at avoiding redundancies.
The workforce will remain as is for the next four weeks, however, with immediate effect all the 650 workers will be put on a four-day week schedule and all their wages will be cut by 20%.
This measure will apply across the board, from the Chief Executive Officer downwards.
Methode Electronics agreed on a GWU recommendation that the same decisions will also be implemented in the Germany and the UK plants. Abroad, the same cuts will enter into effect as early as next Monday.
The trade union and the management agreed that a GWU auditor will closely monitor the company accounts to confirm that the all salaries are truly cut down by 20%.
“This is a very serious and delicate situation,” said Andrew Mizzi, secretary of the GWU’s electronics and technology section, after emerging from a three-hour long meeting with the management of Methode.
“We are working hard to avoid redundancies in this company. We do understand that the company’s financial situation has only worsened due to the international crisis. But we sincerely hope the scenario doesn’t worsen after the Budget.”
Mizzi said that during the meeting, Methode told the union that the new electricity tariffs could inflate Methode’s expenses by as much as €1 million.
Both Methode and the GWU will meet again in four weeks’ time to re-assess the situation.
Methode Electronics, formerly known as Merit, was the first German company that invested in Malta and has been operating locally for the past 30 years.
Last Friday, a total of 80 employees from company subsidiary Hetronics were also put on a four-day week schedule. No union was consulted on this measure since the workers are as yet not represented by any trade union. Methode Electronics acquired Hetronics on October 1.

jfarrugia@mediatoday.com.mt

 


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