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Unions and employers say no to minimum wage raise

Both groups react to pledge by Labour leader Joseph Muscat

Malta Employers’ Association director general Joe Farrugia: “We want a minimum wage that is enough to sustain people but not drive them out of a job.” Photo: Darrin Zammit Lupi

Malta Employers’ Association director general Joe Farrugia: “We want a minimum wage that is enough to sustain people but not drive them out of a job.” Photo: Darrin Zammit Lupi

Its is a given that employers would back a pledge not to increase the minimum wage, but yesterday even unions gave their support to the Labour Party’s commitment should it be elected to govern.

They were reacting to a statement by Labour leader Joseph Muscat, who said his government would not increase the minimum wage but would instead take other measures to address related problems, including up-skilling and increasing employability.

General Workers’ Union general secretary Tony Zarb, whose union proposed a revision of the minimum wage in its pre-budget document, said any measure that improves the standing of those earning the minimum wage was acceptable to the union.

“The GWU agrees with anything which would improve the position of those who earn the minimum wage, such as the promise to reduce the water and electricity bills that are crucifying everyone, especially low-income workers,” he said.

But it was not only the GWU – Labour’s traditional ally – which supported the pledge. The Union Ħaddiema Magħqudin said it favoured more measures to make work pay rather than impose new mechanisms that could distort the labour market.

General secretary Josef Vella said the union would like any salary raises to come from increased productivity rather than by raising salaries artificially.

“Increasing the minimum wage for the sake of increasing it would not achieve anything,” he said, adding that one should also look at why people were earning just the minimum wage.

He said it was either because their employers were abusing of the system or else because they really had no skills.

“We want any government to invest in improving their skills so they can move on and improve their working conditions and their wage.

“This is all about the concept of giving someone a fish every day or else giving him a fishing rod and teaching him how to fish,” he said.

The Malta Employers’ Association said that raising the minimum wage beyond what the labour market can afford could result in job losses or an increase in the black economy.

“We want a minimum wage that is enough to sustain people but not drive people out of a job.

“This is the balance that needs to be struck. We need to shift the focus to driving people out of low-paid jobs into jobs that pay better. Education is key to achieving this,” director general Joe Farrugia said.

The Chamber of Commerce, Enterprise and Industry believes the minimum wage cannot be treated in isolation because it risks blocking the relativity of wages.

“We have always been against increasing the minimum wage because there are other ways to solve the problems faced by minimum wage earners,” director general Kevin Borg said.

He added that the country must ensure the productivity and competitiveness side of the economy is retained so the safety net remains sustainable.

“Education is important, not only in terms of schooling but also teaching people how to use their money judiciously,” he said.

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Charles Grixti

Sep 22nd 2012, 15:52

The Unions have long ago be co-opted. Why has no one yet noticed?

Eddy Privitera

Sep 21st 2012, 21:06

living wage is a different matter. If government induced costs are reduced, sucj as the water & electricity bills, more money would remain in the people's pockets, including those on the minimum wage. This would be better than increasing the minimum wage which would be almost immediatelyabolished thrpugh price increases of goods and services, besides adding more burdens on the private sector. which in turn, could end up either less competitive or else sacking a number of workers.

Robert Agius

Sep 21st 2012, 21:52

In a world of superficial needs and a superficial minds, no other options I'm afraid. However, it's worth noting that the market game is a carrot stick and a rigged game I'm afraid.

Charles Grixti

Sep 21st 2012, 22:44

Jade, then that is why they do not want to stop the illegal immigrants. Just as I suspected, they want to drive the wages down. Ah, the working poor, who will fight for them?

The Market is manipulated by those that stand to benefit. It is not a natural occurance nor a level playing field. We are back to the feudal system of indentured slavery.

Victor Vella

Sep 21st 2012, 21:40

Wiehed kien hawn ta` fibra. U l-poplu ghajjat `salbu`. Illum tal-PN salbu u kissru pajjiz.

Mr Stefan Kottmann-Soler

Sep 21st 2012, 21:03

Mr Morana - what do you thik Mcast is for? And all the opportunities to further your education free of charge? And what is the ETC for - Employment and TRAINING corporation? Upskilling is something the government is already catering for.

D. Xerri

Sep 21st 2012, 18:05

Very Well Said Mr Joe Morana - THIS TIME WITH THE BLESSING OF SOME UNIONS instead of the Those Unions being by their side !

pat muscat

Sep 21st 2012, 18:06

The priority at the moment is the energy bill; it is eating away not only the minimum wage but also the salaries of middle class professionals. With inflation running high-amongst the highest in the EU- a rise in the minimum wage will be counter productive. However, lowering the energy bill, will not only decrease inflation, but will add immediate benefits to those on minimum wage (introduced by Labour) but also to other families in our society.

S. Vella

Sep 21st 2012, 20:34

And who is going to pay for the decrease in energy bill? Which taxes will be raised?

Mario Borg

Sep 21st 2012, 20:37

@.pat muscat, that was not what was promised. Joseph Muscat is promising everything to everybody. In a nation that imports everything inflation is hard to avoid. Or are we going back to price control? How would importers like that?

Peter Simpson

Sep 21st 2012, 22:00

@Mario Borg. What is holding GonziPN from increasing the minimum wage now? Have you ever asked this question Mr Borg? Y0u can also ask Mr Gejtu Pace-an other PN candidate-he also knows something about the timing of large wage increases!

Alfred Vassallo

Sep 21st 2012, 17:20

Daqs kemm qall il pn biex in-nies joqghodu id-dar u jibaghtilom il paga! x'kull wahda ukoll!! Ghax ma tighdx li taht il pn mhuxiex bizzejjed li jahdem il ragel u il mara ukoll ghal 8 sijat imma ikollhom jaghmlu part time ukoll!

A Trapani

Sep 21st 2012, 18:27

Mela Alfred... Kieku kif qed tghid int... M'hawnx qaghad f'Malta ghax kulhadd qed jahdem

A.f Ellul

Sep 21st 2012, 21:13

Il-politici dejjem iweghdu is-sabih jew il-genna ta l-art ,wara li jkunu fil gvern ,inkomplu dak li halla ta qablu,qed nghid ghal kull partit politiku,

Rocco Camilleri

Sep 21st 2012, 16:54

Hoping that this is not being given as an example - my friend. In the 70's a lot was done and told to investors (Maltese and foreigners) not to involve themselves in investing. One could not blame Mintoff when he created the corps ( called military by his adversaries) .

Glen Micallef

Sep 21st 2012, 17:52

Mr. Buhagiar, where did you read this claim?

D. Xerri

Sep 21st 2012, 17:41

Very Well Said - These are the SAME SELFISH People who under the excuse of being competitive, urged the GonziPN Government to withdraw the addition to vacation leave entitlement for those public holidays which occured on a weekend - And If Im not wrong that was meant to be for 4 years ONLY, But it kept on going Forever to the Expense of Families being stolen 3 or sometimes 4 days in a year from being United with their Families - Basta Niftahru ta GonziPN kemm hi ghal Qalbna l-Familja u Sraqna lill kull Familja 3 xi drabi 4 t`ijiem leave minn halq il-familji kollha Maltin !

ALBERT FENECH

Sep 21st 2012, 17:22

It's hardly a farce when the Malta Employers' and the GWU actually agree on something - and even less of a farce when the UHM also agrees with the GWU. I call that breaking ground and a big step forward. Starkly enough, Richard Caruana mentioned a wage-freeze but omitted to mention that this would ONLY happen IF electricity bills are cut and other financial impositions are eased in order to give money more value. Increasing wages whilst enabling spiralling costs means speedily increasing inflation and will just as speedily continue to further cripple industry, tourism and commerce in general. There is a general wage-freeze throughout the EU at the moment and in countries like Britain, France, Italy, Spain and others, Government politicians have DECREASED their salaries - not INCREASED them by 500 euros weekly - as our Government Ministers did!

ALBERT FENECH

Horace Schembri

Sep 21st 2012, 16:02

But it was not only the GWU – Labour’s traditional ally – which supported the pledge. The Union Ħaddiema Magħqudin said it favoured more measures to make work pay rather than impose new mechanisms that could distort the labour market.

Anthony Grech

Sep 21st 2012, 16:18

You and GonziPN always ask the LP what are his intentions when in government, well this is one which is good. But as usual since it is good you and GonziPN do not like it.

J Martinelli

Sep 21st 2012, 17:29

@ Anthony Grech
What gives you the idea that (as you put it) GonziPN "does not like it"? Does the word "competitiveness" even enter into your (and LP's) mind? Minimum wages do not affect Parties, it affects employers, employees and Malta's ability to compete in world markets. One has to think beyond Malta's shores!
My question was that due to the decades long Labour-GWU courtship, would the GWU have agreed with Joseph had he proposed an increase in minimum wage?
The headlines mentioned 'Unions', in plural but the GWU always stands out due to its unquestioned compliance with whatever the Labour Party policies happen to be at any given point. If UHM is a Union, then it is included also, but we all know the difference between one Union and another, do we not?

carlos ellul

Sep 21st 2012, 16:15

Everyone can ameliorate himself whether in academic ways or arts etc. I know painters who can barely write in English. However their paintings are masterpieces. Its all about having initiative and finding the right niche and resources to develop them (the government should step in on that).

Cheap labor will always be paid cheaply and if you increase the salary then many companies will either move somewhere else or offshore or outsource. We've seen that happen with the textures factories.

The american dream can happen. I started as a waiter on minimum wage and precarious work. I'm now a professional living abroad on a good salary and all the courses i did i paid them out of my pockets. Ghin ruhek biex alla jghinek.

carlos ellul

Sep 21st 2012, 14:26

If a person wants to be paid more then minimum wage then he should better himself.

M. Bezzina

Sep 21st 2012, 13:38

Sorry ta...but for me if there is an increase in the cost of living my wage should be equivalent to meet once needs!!

Robert Agius

Sep 21st 2012, 14:43

....if one does not work for it? You think they employ people for nothing? Wages WILL always go up as long as inflation goes up. The worrying bit is that inflation is growing at a much faster rate. You can't blame the minimum wage earners for that, can you?

C Cassar

Sep 21st 2012, 15:50

Why should wages/salaries go up automatically each year? What if the company you are working for made less money than the previous year? Surely your pay should then go down?

Expecting a rise each year is totally unsustainable. Wages/salaries should go down as well as up based on factors such as the health of the company you work for and if in the public sector, the health of the economy.

Carmel Serracino-inglott

Sep 21st 2012, 17:01

I remember that the employers did comment please do not make statements like that.

What is of importance is that those who are receiving a minimum wage ( on the verge of poverty?) will not progress under a Labour government because there are always a large group of workers who are unable to better themselves and the LP comes to tell us that he will introduce skills what! A 45 year old worker with the building industry (say) many a time they are illiterate and make end meet by working overtime. Is this new LP in favour of workers I doubt it . If the minimum wage has to be increased then let it be-- remember that in a capitalist world new industries come in the market and others leave. That is good economics and not introducing a wage freeze back to old mintoffianeconomics. Beware we are having signs now and LP is spelling them out in small dozes that they will return to the good old mintoff times. You see the GWU agrees and UHM at least defined some conditions.

L Mizzi

Sep 21st 2012, 15:21

Il-partit tal-haddiema qed jghid inzommu l-pagi kif inhuma u nnaqsu l-kontijiet. Jigifieri jibqalek iktar flus fil-but, ghax jekk tgholli l-paga hemm cans li minn ihadmek ma jaffordjax ihalsek u allura jkollu jitfak il-barra u tispicca tirregistra!

C Cassar

Sep 21st 2012, 15:47

There is no inheritance tax in Malta.
There is no local tax in Malta.
There is no need to spend €1000s per year on train/bus season tickets.
There is no need to drive 100skm ech week just to get to work.
Income tax at 35% maximum band is one of the lwest in Europe.
There is no need for huge heating bills compared to much of Europe due to mild winters.

Malta is a very low cost place to live if you have experienced many other parts of Europe. Please don't use the excuse of salaries/wages difference since this is more than made up for by the above which the Maltese don't have to experience.

A M Bonello

Sep 22nd 2012, 11:22

There is no inheritance tax in Malta.........we live longer
There is no local tax in Malta..........too small for that
There is no need to spend €1000s per year on train/bus season tickets....really who said?
There is no need to drive 100skm ech week just to get to work.........really I didnt know Malta was that BIG!
Income tax at 35% maximum band is one of the lwest in Europe.......Its still to high in any case for the size of our tiny nation!
There is no need for huge heating bills compared to much of Europe due to mild winters.....What country are you living in?Cant be Malta......It gets hot here and we need airconditioning

These are really ridiculous statements MR C Cassar.What on earth are you going on about?This is the struggle to buy food,the struggle to save money.We pay more then anyone else for consumables,we pay more then anyone else for wearables,we pay more then anyone else for automobiles and the list goes on.How about we get on the right track and start protecting the consumer who needs more money in his pocket due to the ever price increases coming from the food cartels who invent prices as they wish and the ever increasing prices of flour,dairy products oil and the rest of the commodity markets.
So basically what you are saying is lets keep the minimum wage as low as possible to please the rich/industrialists because we are 17 by 9 miles wide!?
Do we live on a continent?Or do we live on a small Island?
After all size doesn't matter,its the motion in the ocean that matters.
Its not size that matters, its what you can do with it!
oh and by the way you are obviously making a good income to write such Jargon!

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