Malta`s competitiveness hangs by a thread

While I am an avid reader and, to a certain extent, admire I.M. Beck`s penchant for verbal caricature, I am of the opinion that his remarks about the employers` stand on the proposed changes in labour legislation distort the efforts being made by the constituted bodies to ensure that the legislation promotes the interests of all social partners.

Regarding the constituted bodies` stand on sympathy strikes, I.M. Beck conveniently omits mentioning the proposal by employers that, if sympathy strikes are to remain legal, they should be subject to the following conditions: a cooling off period of three working days, a secret ballot to be held among employees asked to participate in the secondary action, and before any action is taken, all avenues of conciliation and arbitration have to be exhausted.

The employers` recommendations were based on an understanding of the principle of `distinguishing between acts of solidarity with acts of vengeance`, to quote from a previous article which I had written on this issue.

This stand is very much in line with the prime minister`s stated position on the matter, and it is disappointing to note that the employers` recommendations on sympathy action have been disregarded in the Bill.

I am of the opinion that if the employers` proposals on this matter were accepted, it would have led to a satisfactory compromise between all social partners. I fail to see where the alleged `change back` occurred. Rather, employers have been consistent, responsible, and provided a reasonable way out which so far the government has regrettably ignored.

I.M. Beck paradoxically describes the employers` proposals to the changes in labour legislation as too harsh, and then proceeds to compare their resilience to `a wet paper bag`. I wonder which of the proposals submitted by the employers I.M. Beck finds `ludicrous`. Apparently he is not aware that leave entitlement in Malta is higher than that existing in many EU countries.

It is definitely more generous than those countries that are competing to attract

foreign investment to their shores. The employers` recommendation in this respect is to stop the practice of adding public holidays falling on a weekend to the annual leave entitlement. Is this so `ludicrous` and `incomprehensible` to I.M. Beck?

The employers are emphasising that while it is necessary to harmonise our labour legislation with EU directives, where possible this should not come at an increased cost to the running of a business operation. It is possible to introduce urgency leave without increasing overall absence from work by having such entitlement taken from the annual vacation leave, and not added on to it.

If the issue of adding 10 hours of paid absence from work seems trivial to I.M. Beck, then he must surely not be aware that Malta`s competitiveness in all sectors of our economy is hanging by a thread. Even the unions are aware of this fact. Any marginal increases in labour costs can have significant repercussions on our industry.

This has also to be seen within the context of other measures that may also raise the costs of employment in the near future. Among these one finds measures related to occupational health and safety. Employers do embrace the need to introduce adequate health and safety measures in the work place where they are lacking, bearing in mind that any increased costs resulting from the introduction of such measures, although certainly not capricious, have to be taken into account just the same.

Then there is the mother of all hot potatoes, spoken about in fearful whispers, namely social welfare reform. It would be comforting if the government were to provide an assurance to employers that any reforms in this area will not increase costs of employment further.

Whether the economy is in a recession or not is debatable, but I think that the current situation may be compared to a patient running a mild temperature. This is no cause to be complacent.

If instead of attempting to reduce this temperature to healthy levels, we introduce measures that, however marginal they may appear, raise it further, the life of the patient may be jeopardised.

The employer`s power as one of the social partners is to make constructive recommendations that will hopefully make the decision maker - i.e. government - distinguish between a short-term pre-electoral agenda and the long-term economic interests of the country.