FOI discussions with MLP...

"We have been receiving reports from FOI members that they are drastically reducing their profits in an effort to compete, but at the same time expenses are on a continual increase."

The preoccupying situation of the competitiveness of Malta-based industry was made very clear when Malta placed 42nd with countries like Tunisia, Jordan and Slovakia in a competitiveness report conducted by the World Economic Forum.

FOI president Anton Borg was speaking when he led an FOI delegation at a meeting last Monday with the leader of the Malta Labour Party Alfred Sant, MLP deputy leader Charles Mangion, MLP spokesmen on industry John Attard Montalto and Chris Agius, and MLP secretary general Jason Micallef.

The federation had requested this meeting with the MLP to discuss the present competitive situation of industry, the economy and the labour market in Malta; and to find ways how the situation could improve in the months ahead.

Mr Borg, who was accompanied by deputy president Adrian Bajada, vice-presidents Ian Mizzi and Anthony Tabone, and director general Edwin Calleja, harshly criticised the increases in taxes introduced by the government to cut the public deficit, which brought about pressures from employees demanding wage increases that companies cannot always afford to grant.

"Although we agree that the national debt and deficit must be reduced, this cannot be attained through increased taxes. We have reached the situation where taxes are at such a high level - over 41% of GDP - that potential investors are not attracted to invest and people could even start thinking of opting out of the labour market and relying on social benefits," Mr Borg said.

He went on to discuss, among other issues of concern, the lack of industrial infrastructure and the excess employment in the public sector.

"The time has come when we cannot just worry about problems, just protest, and just blame each other. Making progress or not is our collective responsibility. We must do our utmost to enable our economy to recover and restart generating wealth.

"But for this to be achieved, we must come up with technical and practical reasons and solutions. There is a need to reach a compromise through calm discussion. The pain has long been felt by employers and is now being felt by employees.

"Decisions need to be taken - with the participation of political parties - because these decisions are going to have an effect over a long period."

...and UHM

FOI president Anton Borg led an FOI delegation at a meeting on Wednesday with the president of the Union Haddiema Maghqudin (UHM), Gejtu Tanti, UHM vice-president Joseph S. Vella and UHM secretary general Gejtu Vella.

The federation requested this meeting with the UHM to discuss possibilities of reducing hourly operating costs currently being borne by industry in Malta.

Following the opening statement by the FOI president, who was accompanied by deputy president Adrian Bajada, vice president Joe Pace and director-general Edwin Calleja, the meeting continued to discuss industry's competitiveness; the importance of staff training in industry; and a proposed economic and social agreement.

During the meeting, UHM proposed bringing the Government Auditor's report to the discussion of the Malta Council for Economic and Social Development (MCESD). The FOI and UHM officials also agreed that the two organisations would collaborate further at MCESD council and committee levels.