Employers' Association proposes economic measures
The labour market is suffering because of high wages for lower skilled workers, which are making companies uncompetitive - and low wages for high-skilled workers, which are resulting in a brain drain, the Malta Employers Association said.In its...
The labour market is suffering because of high wages for lower skilled workers, which are making companies uncompetitive - and low wages for high-skilled workers, which are resulting in a brain drain, the Malta Employers Association said.
In its economic analysis forming part of its proposals for the 2008 Budget, it said that in spite of recent redundancies as VF and Bortex, unemployment still stood at 4.9 per cent, its lowest level in seven years. It noted that this was accompanied by a fall in public sector employment, showing that the private sector was generating sufficient new jobs to keep unemployment in check.
Its list of 14 specific proposals is led by one for employers to be able to opt to pay pro-rata social security benefits for their part-time employees, a measure recently introduced for the employees themselves - as long as the part-time work is their main employment.
"This would reduce the gap between the cost of employing a part-timer whose job is his or her principal employment and one whose job is his or her secondary employment," it explained.
On the subject of the cost-of-living allowance (COLA), the association appealed for the principle to be applied that wage increases should be the result of increases in productivity.
"However, one can appreciate the need to protect those on low incomes from inflationary pressures. It is therefore being proposed to award COLA only to persons earning less than Lm70 per week," it said.
It also called for another reduction in income tax rates saying that this would increase disposable income, which had been eroded by higher interest rates, as this would stimulate private expenditure.
The MEA also called for a level playing field to be ensured: "Although it is acknowledged that parallel trading is not illegal per se, it is unacceptable to have such operators evading VAT and eco-taxes.
Some parallel traders are being given an unfair advantage and placing many jobs in jeopardy in other companies," it said.
"Government should also enforce that contractors who are awarded government contracts comply with the legal conditions of employing persons. There are reports of companies losing business to unprofessional operators who manage to win tenders through cheap prices because they offer conditions of employment inferior to minimum standards."
With regards to the unemployed, the MEA proposed compulsory vocational training, particularly for those aged 25 or under. It also proposed that those receiving unemployment benefits should be seconded to companies.
"Since benefits are being paid anyway, it would increase the likelihood of unemployed persons being retained in employment," it said.
With regards to surplus personnel in the public sector, it said these should be seconded to the private sector or redeployed through the setting up of public/private partnerships.
In its economic analysis forming part of its proposals for the 2008 Budget, it said that in spite of recent redundancies as VF and Bortex, unemployment still stood at 4.9 per cent, its lowest level in seven years. It noted that this was accompanied by a fall in public sector employment, showing that the private sector was generating sufficient new jobs to keep unemployment in check.
Its list of 14 specific proposals is led by one for employers to be able to opt to pay pro-rata social security benefits for their part-time employees, a measure recently introduced for the employees themselves - as long as the part-time work is their main employment.
"This would reduce the gap between the cost of employing a part-timer whose job is his or her principal employment and one whose job is his or her secondary employment," it explained.
On the subject of the cost-of-living allowance (COLA), the association appealed for the principle to be applied that wage increases should be the result of increases in productivity.
"However, one can appreciate the need to protect those on low incomes from inflationary pressures. It is therefore being proposed to award COLA only to persons earning less than Lm70 per week," it said.
It also called for another reduction in income tax rates saying that this would increase disposable income, which had been eroded by higher interest rates, as this would stimulate private expenditure.
The MEA also called for a level playing field to be ensured: "Although it is acknowledged that parallel trading is not illegal per se, it is unacceptable to have such operators evading VAT and eco-taxes.
Some parallel traders are being given an unfair advantage and placing many jobs in jeopardy in other companies," it said.
"Government should also enforce that contractors who are awarded government contracts comply with the legal conditions of employing persons. There are reports of companies losing business to unprofessional operators who manage to win tenders through cheap prices because they offer conditions of employment inferior to minimum standards."
With regards to the unemployed, the MEA proposed compulsory vocational training, particularly for those aged 25 or under. It also proposed that those receiving unemployment benefits should be seconded to companies.
"Since benefits are being paid anyway, it would increase the likelihood of unemployed persons being retained in employment," it said.
With regards to surplus personnel in the public sector, it said these should be seconded to the private sector or redeployed through the setting up of public/private partnerships.