The General Workers’ Union (GWU) has withdrawn its court injunction against NetEnt after it negotiated an improved severance offer for employees of gaming company NetEnt who were declared redundant.
At the start of this month, NetEnt began mass redundancies after they were acquired by Evolution Gaming, with hundreds of employees losing their jobs as a result.
The GWU had complained that NetEnt had failed to notify and consult it in terms of European and local law protecting employment in a collective redundancy scenario. It also charged the company and its new owner Evolution Gaming with a wholesale breach of EU transfer of undertakings rules.
The Union representing the majority of NetEnt employees in Malta, had filed an application before Malta’s Superior Courts, requesting an injunction to prevent the company from implementing any form of redundancy or from terminating any employment. The First Hall, Civil Court had later issued an injunction against gaming company NetEnt, at the request of the General Workers’ Union, preventing it from implementing mass redundancies.
In a statement on Thursday, the GWU said that following consultations with the GWU, Evolution Gaming Group has now accepted to offer alternative employment to at least 40 employees within the coming weeks. Another 60 employees are expected to be absorbed by gaming and financial services operators in Malta.
“Thanks to the new agreement reached, the GWU has secured an improvement to the severance offer previously negotiated with an employee representative, and each affected employee will receive an additional payment of €750.”
Other benefits include better safeguards for employees currently on maternity leave and the availability of the company’s health benefit package to affected employees.
The revised severing offer was overwhelmingly approved by those GWU members who were affected.
Negotiations for the GWU were conducted by Josef Bugeja (Secretary General), Kevin Camilleri (Deputy Secretary General), Riccarda Darmanin (Section Secretary), with the legal support of Aron Mifsud Bonnici.
GWU Secretary General Josef Bugeja stated that “we negotiated intensely and with determination. We saved jobs to the extent that this was possible. We ensured that all those who are being let go are suitably compensated.”
He thanked Evolution CEO Martin Carlsund, and company legal advisor Paul Gonzi for their collaboration in reaching a satisfactory agreement.
The GWU today withdrew the court injunction, with the legal and industrial dispute being thus resolved.