Competitiveness at risk

The Federation of Industry would like to express its concern regarding the European Parliament Employment Committee's position on possibly removing the opt-out clause from the Working Time Directive.

The opt-out is the possibility for a member state to make provision in its national legislation for the possibility of an employee to work, on average, more than 48 hours a week, provided that certain conditions are complied with. Malta enjoys an opt-out from the Working Time Directive, allowing employees to work as much overtime as they want and businesses to adopt more flexibility.

The FOI believes that the opt-out is essential for companies. Therefore, the federation opposes the eventual removal of the opt-out as proposed by the EP. The FOI firmly believes that all abuse should be curbed. However complete removal of the opt-out will undoubtedly lead to undesirable results. Flexibility in working time and in working arrangements has become crucial for the competitiveness of Maltese companies and timely delivery of a service and, therefore, ultimately, serves the interests of workers too. Indeed, the flexibility afforded by the opt-out is necessary to enable Maltese enterprises to absorb the shock of compliance with the acquis communautaire relating to working time.

In its resolution on the mid-term review of the Lisbon Strategy, the European Parliament stressed that sustainable growth and employment are Europe's most pressing goals. Reducing flexibility in working time is inconsistent with the objectives of enhancing growth and jobs in Europe. The FOI would, in principle, favour a revision of the Working Time Directive provided that this takes sufficient account of the fact that the solutions that benefit both companies and employees are best found at company level. Solutions identified must continue to leave companies enough room for manoeuvre to identify individualised arrangements.

Following its revision, the Working Time Directive should continue to give workers a high level of health and safety protection with regard to working time. However, firms and member states should be given more flexibility in the way they manage working time and the imposition of unreasonable constraints on firms, particularly SMEs, should be avoided.

Greater flexibility of working time in the organisation would meet the need of both employers and employees. For workers, greater flexibility can meet their needs to reconcile work and family responsibilities. For employers, the essential point is ultimately to be able to adapt to fluctuations in demand, whether seasonal or irregular.

Businesseurope, the Confederation of European Federations of Industry (of which the FOI is a member), released a statement not only voicing its concern about the opt-out clause but was also criticising the Employment Committee's decision to count inactive on-call time as working time. The Council provided a sensible solution to problems arising from various cases in the Court of Justice. This decision will have negative budgetary implications across member states in the private but also public sector.

Ernest-Antoine Seilliere, president of Businesseurope, said: "The vote of the Employment Committee of the European Parliament has put in danger the pragmatic solution agreed between members states and the possibility of finally adopting an amended directive. We believe that MEPs should think twice and support the Council's common position at the plenary vote".

Mr Muscat is director general of the Federation of Industry.