Carlo Gavazzi Limited has reached an agreement with Malta’s two main unions, the GWU and UHM Voice of the Workers, on a compensation package for the 140 employees who will lose their jobs as the company winds down its operations in Malta.

The Swiss-based multinational announced in August that it would begin a phased closure of its Bulebel manufacturing plant after decades of operations on the island.

Negotiations with the unions were described as tough but constructive, ultimately producing a financial framework that acknowledges employees’ long service while giving the company the stability needed to conclude its operations in an orderly way.

Carlo Gavazzi CEO Jean-Marc Théolier said the priority had always been to treat workers with respect during the transition. GWU representative David Darmanin added that the deal provides a “dignified and substantial” cushion for employees as they move on to new opportunities.

Established locally in the late 1980s, Carlo Gavazzi has been a fixture of Malta’s manufacturing sector, producing components for industrial and building automation. With the closure now imminent, both unions and the company have thanked employees for their professionalism and contribution to the business over the years.