Carlo Gavazzi, GWU, and UHM Reach Agreement for Workforce Transition

Carlo Gavazzi Limited, the General Workers’ Union (GWU), and the UHM Voice of the Workers today announced that they have signed a comprehensive agreement regarding the compensation package for all employees affected by the company’s operational wind-down in Malta.

On 29th August, the Swiss-based multinational announced a phased closure of its Bulebel manufacturing plant, impacting its entire workforce of 140 employees.

The agreement was reached following a period of intense but constructive negotiations, which concluded successfully for all parties. It establishes a fair and substantial financial framework that acknowledges the employees’ many years of loyal service, while also providing the company with the stability required to wrap up its local operations in an orderly manner.

Jean-Marc Théolier, CEO of the Carlo Gavazzi Group, stated: “The decision to close our Malta plant after so many successful decades was an extremely difficult one. Our priority from the outset was to manage this transition with the utmost respect for our dedicated employees. We are satisfied that, through professional social dialogue with the GWU and UHM, we have established a fair framework that honours our team’s legacy. We thank them for their immense contribution to Carlo Gavazzi over the years.”

Established in Malta in the late 1980s, Carlo Gavazzi has been a long-standing pillar of the country’s manufacturing sector. The company’s products are used in industrial automation and building automation.
David Darmanin, Secretary of the GWU’s Technology, Electronics and Communications Section, commented: “Following the initial uncertainty, our unwavering focus was to secure a dignified and substantial financial cushion for every single worker. After tough but fair negotiations, we have achieved an agreement that recognises the long years of loyal service our members have given. This package provides them with the security and respect they deserve as they transition to new opportunities.”

Isabelle Farrugia, Assistant Director of the UHM Voice of the Workers, added: “This was a collective effort to protect the interests of all workers and their families. We are pleased that through unity and intensive dialogue, we have secured a positive outcome. The agreement ensures that all employees, regardless of their role, are being treated with fairness and equity during this challenging period.”

All parties wish to extend their sincere gratitude to the employees and management for their professionalism throughout this process. They also thank their respective legal advisors, whose efforts were instrumental in making this agreement possible.