Price hikes: Employers refuse to raise salaries
The Malta Employers’ Association insisted this afternoon that any further raising of the cost of living wage adjustment for this year was 'out of the question'.
It warned that it would instruct its members not to pay out any additional cost of living increases even if they were forced on them by government.
The MEA was reacting to statements by unions that they will call for an energy benefit or increased cost of living adjustment in view of the petrol, gas and milk increases and other increases expected this year.
The cost of living adjustment (COLA) for this year, announced in the Budget, was €1.16 weekly.
The MEA said that companies were also hit hard by the increases in fuel prices, and that, besides COLA, employers are also facing higher social security contributions as part of the pension reform.
"Raising COLA at this stage will only create further inflationary pressures and will contribute towards a wage price spiral that will have a negative effect on the country’s competitiveness," the MEA said.
The association said it also wanted to remind the unions that they were always inflexible whenever employers wanted to discuss a revision of the COLA mechanism.
"In fact, the unions refused to discuss a revision in the COLA increase of €5.82 which was given in 2010, even though this could have resulted in job layoffs during a period of recession. The reason given by the unions at the time is that COLA is an agreement which was reached years ago and that employers are bound to honour that agreement. The unions also contended that COLA has for years contributed to social harmony and stable industrial relations."
The MEA added that agreements were binding to all parties involved and unions could pick and choose the time and terms under which such agreements should be broken. Unions were also represented on the Retail Price Index board, which was the body that measured inflation, so they knew only too well that the computation of €1.16 for 2011 was based on agreed parameters and objective computation, a fact known since September 2010.
The MEA also warned it would instruct its members not to pay out any additional cost of living increases even if it was forced on them by government.
See also:
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Carm Mifsud Bonnici resigns after...
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Bundy does not know whether to...
Updated - Jason Micallef demands...
This WAS the night - Kurt makes it...
'No need for early election if PM's...
In Discussion
Updated - Jason Micallef demands...
Gozo tunnel could take 5-7 years to...
CABS remote controlled aircraft shot...
Carm Mifsud Bonnici resigns after...
Joseph Calleja condemns portrayal of...
Updated: Labour would give...
CABS drone shot down
Second group of migrants arrives
Adrian Vassallo in scathing...
54 Comments
Post comment
Please sign in or create your Account to post comments.
smifsud
Jan 8th 2011, 01:37
the game of "money"must never stop cycling ...an example ...Monopoly we get money by property build houses and hotels and the one who gets all the money wins the game and all other players go broke and are out of the game ...well we cant play the game of LIFE like Monopoly can we ??...we must always find a way to keep money going to ALL Players all the while OR THE GAME IS OVER!!!!
Mario Grungo
Jan 7th 2011, 08:55
I think that lowering the income tax rate to 35% was silly. If you earn more, you pay more. This was done to please the blue eyed boys. Raise it to 40-45% to make sure that those who earn a hell of a lot pay accordingly. On the other hand raise the non taxable income substantially to put more money in peoples' pockets not to spend more but to make sure that they can make both ends meet.
Mario Sultana
Jan 7th 2011, 08:36
The problem is that we get 1euro16 and the government gets 600 euros extra PER WEEK!!!!
mario camilleri
Jan 7th 2011, 07:28
Ghal min jahseb li employers jaqalaw hafna u ghandom il bwiet mimlija ,soluzjoni wahda ghandu li isir employer hu stess u jara kif jintlewlu il bwiet bil kontijiet u bid djun li ikollom jigbru u il hassel u xi lelj lemm u law bla irqad u bhafna hsibijiet, huwa minnu ukoll li tkun hafna ahjar milli bil paga Ghal min ha jiprova il bank jista itik xi loan biex tibda il buisness tieghek u il mepa u lawtorita ituk hafna ghanjnuna biex tiftah in negozju wisq probabli ghanki ihalsulek lispejjes tal permessi u tad dawl u lilma u forsi ituk xi lollypop ukoll ofjament il lollypop trid thallas ghalija.Goodluck
S Degabriele
Jan 7th 2011, 07:19
Dawn l-employers qed jinsew li jekk in-nies ma jkollomx fls fil-but biex jixtru il-business taghhom se jkun qieghed hemm ghalxejn. Jekk il-paga tintnafaq kollha u ma jifdalx tgawdija ta xejn hafna minnhom jistghu jaghlqu u jmorru id-dar.
P. Borg
Jan 7th 2011, 07:04
Prattikament min qed ibati iridu ihalluh ibati, l-aqwa li huma jibqghu jaghmlu il-profitti ezagerati taghhom. Halluna!. Ibdew minn tal-hwienet tal-hwejjeg per ezempju. L-ewwel dawk il-prezzijiet ezagerati imbaghad gurnata wara il-milied inaqqsuh minn 20 ghal 8 euros u rajthom b'ghajnejja stess. Ohra zarbun minn 45 euros nizzlitu 15. Anke b'dan ir-rohs kollu ukoll ma jkunux qed jaghmlu telf ahseb u ara jekk jghollu ftit il-pagi tal-haddiem. Mela l-ewwel hadtulhom u naqqastulhom il-leave u issa ma tridux l-anqas ittuh xi haga zejda il-haddiem biex forsi jghix u mhux jezisti.
Fuq it-Titanic kien hemm tlett klassijiet socjali u skond liema klassi kienu in-nies gie deciz min se jereq jew le. L-istess qed jigri f'Malta tridu toholqu gaps kbar bejn klassi u ohra halli tibqghu tgawdu intom biss. L-istess bhat-titanic se taghmel Malta, se tereq u tispicca. Grazzi ghal gvern bla hila u nies egoisti bhalkom.
Ganni Sciberras
Jan 7th 2011, 06:03
misssu jisthi gej izidna 1.16 bissss!!!!!!!!!!
A. Agius
Jan 6th 2011, 22:25
Clearly the Mintoffian communistic influences and ideas of the 70's need much more than a generation to disappear...
Joseph Cassar
Jan 6th 2011, 21:45
employers beware.... if the government orders a raise in salaries, you have to play ball, otherwise your workers will take over your factories and businesses,.No one is above the law. and the law stipulates that the wages paid to workers are sacred. And if you dont pay the increase (if ever the government allows it) then the workers have a sacred right to take over your belongings. That's the law.
MBorg
Jan 6th 2011, 21:38
We are living in difficult times. It is not only the workers and pensioners , but also the employers who are feeling the pinch. That is why the scandalous pay rise of €600 wwekly stands out like a sore thumb.We have workers and pensioners who are trying to make a living on much less than €600 monthly
.
How is it that all in Malta are sinking under higher bills which somehow have to be paid, while our MPs are swimming very nicely with their high salary increases, perks and uncapped pension. Are we living in the same country?
robert micallef
Jan 6th 2011, 20:36
my employees will get much much more than that. however they are paid the difference on the last day of the year. if the company makes a good profit they get a very generous bonus. if we do not reach our fair targets they get nothing. People should stop paying employees by the hour or the "week". pay should be based on your performance. this way i do not need to tell them to come early or to treat customers with respect. if you want the best people to work for you then you should be generous with them. Make them partners.
A. Mifsud
Jan 6th 2011, 20:31
I really fail to understand why all this outrage against employers, by some bloggers. I can assure anyone that at times of economic distress, employers tend to go to extremes in order to keep their businesses up and running. A time where much more than anyone could imagine is at stake! The majority of entrepreneurs are bona fide individuals who respect and have their employees (which are their greatest asset) truly at heart. Redundancies are usually measures of last resort. Price hikes hit the businesses heavily, and probably worse than individuals / households. It's easy to point fingers - but no so easy when you're risking your own money, trying to run a business and guarantee the livelihood of your employees and their families!
Steven Brockwell
Jan 6th 2011, 20:25
dont worry about it ( money no problem)
thats what we where made to belive
micky mouse econemy. no brians what a joke of a island. we state a budget then everythings goes up afterwards hahaha
N. Bonello
Jan 6th 2011, 19:58
This is an interesting argument that MEA makes.
And we as the employers of MP should refuse to raise their salaries.
Nice one MEA.
N. Bonello
Jan 6th 2011, 19:55
Employers need not worry about cost of living. When ever something goes up eg. Gas, Petrol, Rent or other expenses they just put up their prices. Look what happens when say Flour goes up by X per sack. The price rises by 4cents when if you multiply 4cents by loaves produced per sack (note loaves are already sold under-weight) you end up with quite a nice rise in profits.
Also, have you noticed that when something like Wheat or Oil has a steep price rise (World Crisis) the price quickly rises (as outlined above).
But what happens when the World Crisis is over the retail price remains the same - again a nice extra rise in profits.
In the meantime employees remain at the same level after numerous price rises and end up getting 1.16/week increase - Wow.
The only problem with this trick that has been working well for centuries is that we have reached a saturation point of spending power were employees are not able to subsidise others life style.
darren cassar
Jan 6th 2011, 19:29
@ M Piscopo
Unfortunately we are not far from living in a third world country especially where good sense is concerned.
Jacqui Gatt
Jan 6th 2011, 19:28
Today my friend received this from his work:
Please note that for 2011 the National Insurance increased by €2.36/week and the Cost of Living adjustment is €0.75 (net after tax) making a net decrease in salary of €1.61/week.
Charles Micallef
Jan 6th 2011, 18:43
Employers refuse to raise salaries! ...................
Excessive raise in salaries lead by the prime
example of the Ministers and Parliamentarians!
God bless them!
John Grima
Jan 6th 2011, 18:27
@Patrick Zammit
IN the UK there is no compulsory wage increases every year and an employer will give a pay rise when he can afford it. The only compulsory pay rise is when the minimum pay is increased.
If an employer wants to keep his employees then where possible they will give a payrise, as a skilled workforce is probably the best asset that a business has. I have worked for the same employer for 25 years have always given a payrise, usually at the rate of inflation or higher where possible. Unfortunately for the last 3 years things have not been going so well so we have had to forgo any pay increases from 2007 to 2009 and in 2010 we were given an increase in our pay.
Just to clarify things the company I work for has a workforce of 26,000 and what I said above al;so applies to companiies like Sainsbury and Tesco who employ around 120,000 each.
S.Micallef
Jan 6th 2011, 18:32
Wise words which explain why you managed to keep a stable job for 25 years.
These days people that reason like you are harder to come by. Unfortunately Malta has seen an increase in presumptious unskilled workers who want to be paid for doing nothing.
Jesmond Chetcuti
Jan 6th 2011, 19:33
I am with you John on this, I have been working in the UK for the last 5 and a half years,and my company didnt gave any payrises for the last 2 years...and no one complains, but we thank God that we still have a job...and by the way even here the cost of living have spiriled,fuel,gas electricity to name a few...people in Malta need to see the bigger picture,the western world is in a mess...
Ernest Vella
Jan 6th 2011, 22:49
Mhux il-MEA trid taghti z-zieda imma iz-zieda tal-parlamentari ma tinghatax jew tinghata daqs kemm jiehu l-poplu. M'hijiex gustizzja li l-ghani jistana u l-fqir jikripa. Anzi il-Gvern, li suppost huwa demokristjan suppost ghandu l-gharfien bizzejjed tal-Gustizzja Socjali. Min imexxi jrid jaghti l-ezempju u mhux jahseb ghal butu.
John Boyce
Jan 6th 2011, 18:24
You know what they can't do with the measly 1€ 16 don't you, you poor guys in Malta, although saying this ours isn't much different. its tough days ahead folks what with the extra vat hype and all that, my holidays in your fantastic country are over for this year, sorry to say, unless some rich Maltese out there and there are plenty especially in Gozo, is good enough to subsidise the tourist industry and lets us POOR Britains all fly cheap. Oh! Not Ryan Air please prefer AirMaltra.
Kenneth Briffa
Jan 6th 2011, 18:56
I see what i can do Mr.Boyce, and true alot of people in europe think that we are poor and backwards, but boy how wrong can they be, well.......come over i say and see for yourselves we are full of RICH heritage and our weather is a plus in the right direction.
Recession in Malta whats that............................................................Caio Ciao
Mark Piscopo
Jan 6th 2011, 17:34
@MEA
We are not living in a third World Country where the workers are treated like slaves. With these comments and by instructing the employers not to pay out additional cost of living increases to the workers is a major blow to all workers.
S.Micallef
Jan 6th 2011, 18:03
And why should the employer foot the bill?
The cost of living has increased for the employer as much as it has increased for the worker. Many small businesses which make up most of Maltese employers struggle to make ends meet.
We should be thankful that in this current economic climate there are still people willing to take risks, increase their responsibility and employ others.
I invite all workers who, once they get home leave their work troubles behind, to put themselves in the employer's shoes.
N Xuereb
Jan 6th 2011, 18:14
Companies have been hit hard. A small company which uses vehicles has already an extra 20 Euros of fuel per week for a small van, let alone those using heavy vehicles. It was already a huge problem during the last 2 years. To add to the recession, cash flow is zero because everyone is paying up very late. If a company decides to call it a day, its the workers who are effected worst. The governement is not taking this into consideration.
S.Micallef
Jan 6th 2011, 18:25
@N. Xuereb - Well said.
Plus employers take certain risks which employees do not. At the end of the day if a business does badly the most an employee can lose is his job. Employers on the other hand can face bigger problems.
G.Debono
Jan 6th 2011, 19:50
Hekk sewwa issa Sur Micallef. You expect the employees to share the risks of the employers?
If you don't like the risk, don't be in business, but at least stop moaning. Are you one of those mavericks that gives pittance to employees, moans about the recession and then goes and buys new luxurious cars?
I don't care about whether employees get extra cost of living or not, but to have a businessmen come here claiming that losing one's job is nothing compared to what a businessman can lose..you really know nothing about what being w/o a salary (and possibly loosing the house etc..because you cannot keep payments etc..)
Upshot is...if you, the business man can't heck the risk, then employ yourself, but don't take it out on employees. With that kind of reasoning, I pity people employed by you.
Joe Borg
Jan 6th 2011, 20:03
Mr micallef, the way you put your arguments portrays your "i am the boss you are the slave". you must be reminded that without your good slaves you are nothing, so you better try and invest in their wellbeing.
N.aquilina
Jan 6th 2011, 22:34
@s.micallef
Looks like it all boils down to the governments squandering money where he shouldn't (city gate theatre, 600€ a week to his ministers) and the employers and employees conditions getting worse and worse by the hour!
Ganni Ellul
Jan 6th 2011, 17:34
What amazes me is that with such increases and added costs the Maltese still found money to give away to the political parties, Istrina and Dar Tal providenza, go to the most expensive bars and restaurants each weekend and you find them full of maltese people, How Come? Where did they find nearly 5 million Euros to give away? and don't tell me it was contractors cause they are haveing a hard time
Mark Piscopo
Jan 6th 2011, 18:12
Do you agree that the employers are refusing to raise their salaries according to the cost of living, re above related article?
All the Maltese people who donated the money to the charity because we as a nation are sensitive to each other and can be an investment because only God knows when you are hurt by an illness. I am very sorry with your comments because you justify all these increase in taxes imposed by the government with the money that we donated to Charity!! Hope that you excuse yourself
S.Micallef
Jan 6th 2011, 18:14
Fully agree..then they expect employers to pay for people getting their priorities all wrong.
S Bonnici
Jan 6th 2011, 18:34
Ghall-partiti ma tajtx imma ghan-nies fil-bzonn, iva, tajt, minn qalbi avolja b'sagrificcju kbir. Ma jfissirx li ghax tajt donazzjoni lill-Istrina jew lid-Dar tal-Providenza qed infur bil-flus. ANZI.... i'm struggling to make ends meet at the end of each month.
S. Micallef, tidher li m'ghandekx nies li huma fil bzonn ta' dawn l-ghaqdiet! Ghax kieku taghmel minn kollox biex imqar taghti l-izghar u l-icken donazzjoni. Imma ovvjament... inti employer ... u tidher li mintiex mghakkes bhalma huma l-maggoranza tal-Maltin, inkluza l-familja tieghi!
Kulhadd jgholli kemm jiflah u l-pagi bic-cejca!
Ganni Ellul
Jan 6th 2011, 21:37
~Mark Piscopo
I am not saying that we should not give to charity , I am niether condoning th eprice hikes , as like you I live in this country and have a family of four plus a dog to feed. but why should we give to the political parties when one of them is in power and can help in these hard times and th eother is doing nothing except makeing political milage out of our plight.But can you explain how the restaurants are nearly all packed*well the real ones that is( in weekends and the bars and coffee shops full all day long all week.Explain that to me.As for an apology since when does one need to apologies for speakinmg his mind without insulting anyone?Is this New PL perhaps?
J Brincat
Jan 6th 2011, 17:27
MEA is always hesitant to increase the workers' wages. It is clear that the cost of living mechanism is not working as it should be. How else could the figure of the miserly €1.16 weekly rise been worked out. On the other the Unions are divided between them and this undermines their strength to the detriment of the workers.
With all these price hikes many are finding difficult to cope You have to be insensitive in such a difficult time to grant yourself a scandalous weekly € 600 pay rise. Sort of reminds us of Marie Antoinette when she said 'Let them eat cake'.
Michael Ellul
Jan 6th 2011, 17:16
Government should increase tax ceiling to guarantee at least €6 per week for each worker. Stop telling us we are in a recession and we cannot afford it., Government should control his expenditures. Malta right now requires that workers and family have a decent living if necessary postpone the city gate project first we live then we spend that is the basis of any family and a country is nothing more than a big family.
The facts today is our country father is richer every week he is spending and taking loans and us as his kids are working suffering hunger for his greediness. Dosen't seem we have a good daddy don't we? Should we introduce divorce and change him with Joe Muscat?
a. zahra
Jan 6th 2011, 19:13
Change him with whoever you want. The fact is that things cannot change and if JM insists on change then he will have to impose more taxes to pay a larger unemployment benefit. Push up wages and unemployment.
patrick zammit
Jan 6th 2011, 17:11
How do employers survive in other countries where salaries are much higher and prices are the same like here or even lower?
S.Micallef
Jan 6th 2011, 17:31
They obviously make more money.
ssammut
Jan 6th 2011, 17:09
Minn hu mejjet ghall qatra u minn hu mejjet fis sakra ! The gap between the rich and the poor is increasing unfortunately. Middle class decreasing .........
C. Farrugia
Jan 6th 2011, 17:43
It is exactly what's happening. And I believe, it is NOT by accident.
James Fenech
Jan 6th 2011, 16:56
Can someone give me a hint if the 600euros salary increase are going to be given to our HEROES. Why the Employers Association tackle this matter with the HEROES and not stating that the peanuts COLA given this year is 'Out of the question'.
a caruana
Jan 6th 2011, 16:56
now thats good the mra dont want a pay rise for the workers but they want the workers to pay more to live and got work
it was not the worker hue wanted the fuel.gas,milk and so on to go up so where are they going to find the diffrent from other than the place of work
wops sorry i for got money grows on tree
the best thing the worker can do is just not got work its getting to a point they will have to pay to goto work not get payed and as long as the gov and the MEA are talking just the rich will service and the pore and so called working class dont mater any more this pleace is a joke and getting worse the eu no better all they care about is there pockets and so called eu for every body they only get involved when it suits them
L.Desira
Jan 6th 2011, 18:46
are you serious?
Charlene Bonnici
Jan 6th 2011, 16:48
Joking ux???????
S.Micallef
Jan 6th 2011, 17:39
Jekk trid Charlene impjega in-nies int u oqod hu r-responsabilta int biex tara kif se thallashom kull xahar...malajr ikollok aptit ticcajta imbad.
employers struggle to make ends meet these days and what's worse is struggle to find skilled employees willing to work.
stop putting pressure on employers; if it werent for small enterprises 3/4 of Malta would be out of a job. stop pressurising employers.
Charlene Bonnici
Jan 6th 2011, 18:02
@ Micallef
If we wont have money in our pockets to spend the employers will be faced to close down!!!! We are being paid with peanuts while the employers have full pockets. That's the truth!!!!
S.Micallef
Jan 6th 2011, 18:10
You obviously have no idea what you're talking about.
Employers do not have full pockets as you say. The current economic climate plus the lack of a good workforce (because people are becoming lazier in general), is causing many businesses to close down.
You know what an increase will mean? Cutting down on workforce to be able to keep the business alove. So either everyone suffers together or some lose their job.
Charlene Bonnici
Jan 6th 2011, 19:42
As you dont know what you're talking about when living on a minimum wage
P. Borg
Jan 7th 2011, 07:17
@S. Micallef
Skuzani habib ta imma nixtieq naghmillek mistoqsija:
Mela min ghandu il-vilel u il-karozzi lussuzi? Xi haddiem tal-gvern jew xi impjegati b'xi paga minima???? Hafna bdew b'hanut f'kantuniera u imbaghad irxuxtaw xi erbgha ohra mieghu. Nista nsemmi bizibilju minnhom dawn in-nies imma kieku dan il-kumment ibqa cert li ma johrogx ghal pubbliku.
L-affarijiet ghal kull hadd gholew anke ghal min ghandu business imma ruhi min ghandu 100 euro u min ghandu 50 biex jiggieled kontra dan l-gholi. L-employers l-unika haga li dejjem ghamlu sfruttaw il-haddiem. Kieku jistghu qas ghal weekend ma jhalluh imur id-dar u naf x'qed nghid. Naqqastulu sahansitra il-leave.
L-impjegat ikollu jiddikjara kull centezmu li jaqla imma min ghandu il-business jiddikjara dak li jidirlu hu. Biss biss nghidlek li din il-gimgha mort nixtri minn hafna hwienet. Tlett kwarti minnhom li ma tlabthomx l-ircevuta tal-VAT qas kienu se jaghmluha plus li tnejn minnhom gergru. Wiehed qalli - "x'tambiha?" u l-iehor beda jonfoh melli tlabtilu. Sewwejt ghand panel beater u infaqt 1,600 euro. Qas biss rajtha b'nemes l-ircevuta. U BTW irrapurtajt ukoll imma kienu torox. Halluna, tridu tadduna biz-zmien ghandu jkun. Il-flus li iddahhlu minn taht qadd ma issemuhom ara l-impjegat ma jistax jaghmel mod iehor.
Carmel Garcia
Jan 7th 2011, 08:34
S. Micallef: Trid ticcajta. Kieku l-employers m'ghandomx l-elef ta' qliegh, kieku jaghlqu u jzarmaw. Hu minn bhal daz-zmien ta sales. Oggett normalment tixtrieh per ezempju €100 u bis-sale jinbiegh nofs prezz u anke inqas u xorta jibqa l-qliegh minn fuqu. Ahna wkoll konna bil-buziness u naf x'jien nghid. L-employer iridu biss gib l'hawn u tiehux l'hemm.
K. Camilleri
Jan 7th 2011, 09:29
@ Micallef - If you're not filling your pockets I don't find a rational reason why you still run a business. Why go through the hassle if you're not making any profit. Just close down and find a "responsibility free" job. The truth is that yes you do make profits and it's far beyond our wages. But this will backfire eventually because as Ms. Bonnici said, if we don't have money we wont be able to keep your businesses running.