HSBC workers have suspended their strike action, with union MUBE warning that industrial directives will resume if no “reasonable” compensation offer is made.

The pause comes after talks at the Department of Industrial and Employment Relations (DIER) on Tuesday, which brought both sides to the table. According to the newspaper, another meeting with a representative of the HSBC Group is scheduled for later today, and the union said it would await the outcome before deciding on its next steps.

“Regrettably, to date the bank is yet to make a concrete proposal to unblock the impasse and initiate discussions,” the union told its members.

MUBE launched industrial action on Monday, instructing employees to log off their systems and stage a sit-in strike. The move followed weeks of deadlock, with the union pressing for compensation as HSBC prepares to transfer its majority stake in Malta to Greek lender CrediaBank.

At the centre of the dispute is a clause in the collective agreement, which the union argues entitles workers to terminal benefits in cases of mergers, takeovers, or transfers of business. This would give employees one month’s salary for each year of service, capped at three years.

The bank has so far resisted this interpretation, arguing that no jobs are being terminated and that all 900-plus employees will remain in post under the same conditions once the change in ownership goes through. CrediaBank has already committed to retaining staff for at least two years.

While HSBC has signalled it may be open to a goodwill gesture after the sale closes, no formal offer has yet been made. Union leaders have warned that without clear progress, industrial action will return.