MEA backs calls for COLA, pensions reform
The Malta Employers Association this morning backed calls made to Malta by the European Commission for further reform to the pensions system and the COLA (cost of living adjustment).
The MEA said the recommendations reflected a number of concerns which it had been voicing for years with regard to competitiveness and sustainability of public finances.
The MEA said it agrees with the recommended measure to index (link) retirement age to mortality age.
"This is being adopted by other countries and is a realistic way to ensure that the retirement age reflects changing demographics," it said.
COLA ADJUSTMENT
As for reform to COLA, the MEA said it has, for years, been arguing that the COLA mechanism is outdated and could result in a loss in competitiveness.
"This is also being discussed at MCESD but it is evident that government and unions will resist – for political reasons – the removal of automatic cost of living increases, in spite of advice to the opposite by the IMF, the Governor of the Central Bank, and now the Commission."
EARLY SCHOOL LEAVERS
The MEA said EU calls for Malta to further reduce the number of early school leavers were 'very sobering'.
"It should be a national priority that, with so much investment in education taking place, the number of school leavers has to be cut down even further than the 33% projected for 2014 from the current 36.8%. However one needs to compare the measuring instruments to ensure that the comparative figures are based on the same basis."
With regard to fiscal consolidation targets, the MEA said the although Malta does not have an alarming situation, it is imperative to reach the fiscal targets by keeping the deficit below the 3% threshold and reducing the size of the public debt.
"The government should not give in to pressures to increase expenditure unless it is matched by revenues generated through economic growth. Another tough nut to crack is our dependence on fossil fuels, as moving from an over reliance on fossil fuels entails substantial investment."
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Charles Massa
Jun 9th 2011, 17:58
Iddahqunix tal MEA. Ghax ma tarawx kemm membri taghkom ma ihalsux taxxa u jiehdu l beneficji mil gvern
Mr carlos ellul
Jun 9th 2011, 14:22
I wonder if illegal immigration does well to our economy and yet, the EU pretend us to save and keep all immigrants in Malta. If the EU is so keen to show solidarity towards these 'poor people' then there is nothing wrong in showing solidarity to the workers especially since the latter are the ones who are actually sustaining the former.
Robert Caruana
Jun 9th 2011, 14:14
Linking retirement age with mortality (or to be more accurat with life expectancy) may not be realistic. With today's medical advances people tend to live longer because many conditions can be controlled, but a 75 year old will still remain a 75 year old irrespective of how much average life expectancy increases.
While some 70 year olds may indeed be blessed with good health and lots of energy and can actually wish to keep on working, many other 70 year olds simply would be unable to keep on working, irrespective of changes in life expectancy.
E. Azzopardi
Jun 9th 2011, 14:06
What happens to pensioners?
Mr Tony Camilleri
Jun 10th 2011, 17:08
They don;t get an increase in pensions.
That is what the crap eu wants to do to workers and pensioners.
Do you still want to remain members of this crap dictatorial disorganization?
Tarcisio Bonello
Jun 9th 2011, 13:23
Giving that we have the lowest average pay packets in the European Union and giving that the pay packet is one of the problems that married couples are facing in their relationship which will now lead them to separation and ultimately Divorce (the new Maltese buzz word). Giving also that the gap between rich and poor in Malta is always growing and giving that around 14 to 15% of the population is classified as POOR, why oh why - I ask - should we keep on resorting to the outdated COLA mechanism?!
I would say that it's about time that Malta sets its benchmark on the minimum wage to that of the next EU country above us which if I'm not mistaken is that of Cyprus and which wages are around 80% higher than ours.
Therfore an average worker who now earns around Euro 1000, should from the 1st Jan 2012 get Euro 1800.
Will we then remain competitive - Well, giving that there are around another 30 odd countries in the EU with wages higher than ours then my guess would be that we have no worries.... unless we want to go the other way and get Chinese pays.
E Gatt
Jun 9th 2011, 15:25
Malta does not have the lowest pay package in Europe. I also doubt that the average pay in Cyprus is 80% higher than in Malta.
Increasing wages by 80% would be nice, and increasing wages by 180% would be even nicer. Obviously we don’t need to worry about competitiveness, deficits and other annoying EU requirements.
I’m sure the shadow minister of finance does not share such views – problem is many of his supporters do, and they’ll add pressure to implement mad economic measures.
Tarcisio Bonello
Jun 9th 2011, 17:10
Hi,
My comment on wage increases was meant to be Sarcastic - Obviously nobody in his right mind will increase wages by 80%... but on the other hand why do we always have to economise from the wage packet only... aren't there other things that the employers can economise on - luxury cars, excessive travel, yachts, their own pay packet and drawings, Profits etc etc etc..?
My first paragraph also mentions 3 real conditions that the Social Partners are NOT tackling... where are we heading? are we to leave everything to the wind? Don't you think we need to address Poverty, Low Pay and the ever widening Gap between the Rich and the Poor? Do the Rich need to be so Rich ?... Do the Poor (inc the Middle Class) need to be so Poor (Or struggle to make it from one month to the other) ? Do we need to have 15% poor people (1 in 7)
and p.s. I am not a Laborite (There is much to say about the Old and New Labour which I do not support.. Divorce is one issue.) - on the contrary I support Nationalist and Conservative views including a Free Market Economy.... but NOT Greed!!
Mr J Xerri
Jun 9th 2011, 13:13
Sometimes I wonder if the EU is more interested in the economic and financial side of things rather than the standard of living of the man in the street!
Ms Rose Cilia
Jun 9th 2011, 16:44
You wonder , I'm sure.
E Gatt
Jun 9th 2011, 18:28
“The standard of living of the man in the street” is dependent on “the economic and financial side of things”.
Mr Tony Camilleri
Jun 9th 2011, 12:41
What else would you expect from the employers?
Have they ever given anything to the workers unless forced to by law?
Mr Mario Micallef
Jun 9th 2011, 14:12
More and more...who is to make up for their tax evasion? the employee as usual...to make things worse employees are abused of their rights to make employers richer...everybody talks about conscience...i guess for their own reasons!!
Mr David Buttigieg
Jun 9th 2011, 14:19
"Have they ever given anything to the workers unless forced to by law?"
No Nothing at all ... except jobs, wages, paying a higher tax, keeping the economy afloat - how dare they!
You probably believe the government should be the only employer right?
E Gatt
Jun 9th 2011, 15:01
Here we go again with more socialist anti business comments.
Since when have you paid the grocer more than the asking price for a loaf of bread?
Business is business. Communism is dead.
Mr Tony Camilleri
Jun 9th 2011, 18:00
Mr David Buttigieg All because they were FORCED by LAW.
E Gatt your comments are irrelevant
Mr David Buttigieg
Jun 9th 2011, 19:30
Tony Camilleri
Jahasra, how's that chip on that shoulder?
Taf xi jfisser lanzit?
Mr Tony Camilleri
Jun 9th 2011, 21:46
Mr David Buttigieg taf xi jfisser li ma tagħtix lill-ħaddiem dak li ħaqqu jekk ma tkunx sfurzat li tagħmel hemm bil-liġi?
Mr David Buttigieg
Jun 10th 2011, 11:01
Tony Camilleri,
No I don't, you see, unlike some, I am not burdened with an enormous chip on my shoulder mad up of envy, laziness and a desire to bring others down to my level rather then raise myself up to theirs!
Mr Tony Camilleri
Jun 10th 2011, 14:08
Mr David Buttigieg żgur li ma tafx għax inti xi employer għax bħalhom tirraġuna.