GWU bonus proposal would cost almost €20m

The General Workers' Union yesterday proposed the payment of a one-time bonus of €58.23 for every person aged 16 and over in order to mitigate the surcharge cost on utilities, a proposal that could cost up to €20 million.

According to GWU general secretary Tony Zarb, the bonus, which would be paid in December, is essential because of the increasing costs faced by families.

Calculations made by The Times using the latest census figures suggest the bonus would cost nearly €20 million.

The union's proposal was drawn up before the government issued its own plan to do away with the surcharge and raise utility tariffs, which would push bills even higher. The union has complained that the proposals were not in the pre-budget document but insisted on forging ahead with the publication of its own recommendations, which were decided upon before the government "surprised" social partners with the new proposals for utility bills.

Mr Zarb said the union was caught by surprise but felt it should still make its proposals once they were decided upon. "If anything, we are insisting that the system should stay as it is, certainly for the time being," he added when asked whether the union's proposals have been superseded by events.

Outlining the GWU's 2009 budget proposals, Mr Zarb said that, over the last year, food prices increased by eight per cent, the price of clothes by seven per cent and that of transport by three per cent. This, along with a 31 per cent increase in the price of energy, was making it difficult for families to make ends meet and the proposed one-time bonus would alleviate this burden.

Moreover, he said, the surcharge should be paid according to one's consumption and the band of people exempt from paying it should be widened.

The union also proposed a revision of the tax bands to secure a better standard of living and credits for those who do not pay tax.

The GWU also wants to see an increase in the minimum wage and minimum pension.

The union called for the reduction of red tape for small and medium sized enterprises and measures to curb illegal employment and the exploitation of such workers.

Mr Zarb said the union is in favour of introducing effective family-friendly policies such as flexi hours, reduced hours, job sharing and teleworking in order to increase female participation in the labour market.

Another proposal is to give fiscal incentives for people to use alternative sources of energy as well as better compensation for those who supply energy to the national grid.

The union is calling for a revision of students' stipends in line with the Cost of Living Adjustment (COLA). He stressed that COLA needs to be calculated according to the latest household budgetary survey in order to better reflect what families are experiencing.

The government should reduce excise tax on fuel to the minimum permissible according to EU regulations.

In other proposals, the union calls for more funding for local councils, more advertising to be made by the Malta Tourism Authority and for the government to restore public holidays that fall on a weekend.

Referring to the health sector, Mr Zarb said the government should pay greater attention to primary and preventive care. It should also ensure that the potential of Mater Dei Hospital is maximised and that health services continue to be provided free of charge.