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
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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Joe Morana
Sep 22nd 2012, 09:44
Given that the W & E tariffs are somewhat taken into consideration when the COLA is awarded to all employees,.is the Labour Party suggesting the removal of the COLA?
it is amazing how the LP made a 'right turn' as it succumbed to the employers' represetaitves lobby. Still , more surprising, is how the unions fell for it too.
Perhaps the Labour Party may wish to consider safeguarding low income workers purchasing power via tax-band adjustments (promised but not delivered by the present Government) , and tax rebates e.g on health . This would be more socially just
Victor Vella
Sep 22nd 2012, 08:50
After all this fuss wages reflect the Maltese economy. The Maltese economy is in dire straits where workers are no secure in their jobs and the only thing they can afford to go and eat a pizza or some epitizers and a bottle of beer. Employers are employing people far below the minimum wage. It is a matter either you take it or leave it. There are a lot outside begging for a job. This is the economic situation under a regime of GonziPN that boasts to have created 20,000 jobs only created in the fertile imagination of a corrupted oligarchy of people that want to manipulate the minds of imbeciles including some fat cats that are passing fair by a hearthless regime of bluff.
charles v schembri
Sep 22nd 2012, 08:49
This is the kind of forum such blogs should be for.
There are no definite solutions to the issue. This is not just a Malta problem. Those who follow the subject in a good number of EU countries (and not just due to the economic crises) would appreciate better. Am not all that conversant with the subject but empirically can express some thoughts.
1. Are we agreed that there are individuals who are unemployable (for various reasons as mentioned in some comments), workers who refuse to be "up-skilled" (PL americanism), employers who would wish to increase their skilled labour but have to ascertain the sustainability of the entity, prople who are not learned sufficiently to adapt themselves to particular social environment (spending beyond one's means)etc?
2. I know of workers who refuse to improve their skills (and at all levels), even if encouraged; undergo training reluctantly and their productivity and on job commitment remains low. I know others who try to advance on their own initiative and rightly expect to be rewarded (but the budget would unfortunately not always permit).
3. It is expected that on a minimum wage one perhaps cannot cope. Albeit I know of people who make the best of the situation, supplementing same by honest labour avoiding undue expences or fringe luxuries.
But thus training solve these people's "genuine" problems? Aren't there ready made or ad hoc courses by various public agencies? What is the pencentage of workers that employers send for such training? Were such workers, following training, rewarded accordingly or the company or SME in question has to safeguard the sustainability of the enterprise as a priority.
4. And why limit the sustainability of wages only to those with a minimum wage? Are not workers employed in "professional" jobs also being up to an extent abused of following long years of education and now working long hours with no guaranteed career advancement? Surplus educated/trained labour controls wages.
5. Recently an institution has issued a memornadum on people living on the fringe of poverty. I do not doubt the findings. But do sincery believe that in most cases these are social problems. It is this kind of folk that needs to be assisted and not cases like those described by a certain Mr C attard below.
In conclusion one would need to strike a balance. Controlled and regulated market forces should prevail and social services handouts should be throughly monitored. Curtailing a situation of workers with an uncalled for (abusive) minimum wage or workers empoyed on precarious labour is a double edged measure. It could result in small enterprises closing down or shedding off labour as a result of uncompetitiveness. The situation is most surreal; realism in tackling such extant issues should lead the way forward. Our standard of living is not only dependable on wages, it also involved health, education and social services; that in turn calls to remain sustainable.
It is not a PL or PN issue. It is our society's objective.
Mario Tabone
Sep 22nd 2012, 05:10
>>>>>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.<<<<<<
Hypocrisy at its best !!!!!
Mario Tabone
Sep 22nd 2012, 05:03
''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.''
Aha....so now JM states that he will not increase the minimum wage if elected. I presume he and his cronies will still keep the existing increase in their parliamentary wage packet and probably find some way or excuse to have even more !!!!!
So much for all the talk and hype against the present government. Once a hypocrite always a hypocrite .
M Agius
Sep 22nd 2012, 02:30
Forsi la qeghdin fl-EU, misskhom kollha tipprovaw tmorru tghixu sena barra minn Malta, halli tgerrgru zgur!!! Jekk xbajt... itlaq
tania scopazzi
Sep 21st 2012, 23:05
Food, clothes, appliances utilities etc. are just as expensive as in other European countries, but then the worker's wages are much lower. Clearly, it is a result of Maltese worker's low wages that the economy is still floating so it imperative that the wages remain low. So unfair. And the Unions do not object?!!
Charles Grixti
Sep 22nd 2012, 15:52
The Unions have long ago be co-opted. Why has no one yet noticed?
A.f Ellul
Sep 21st 2012, 21:07
Ahjar inehhu taxxa mil-paga u jhallu VAT.mela nhalsu taxxa dopja,lilna x'hasbuna, xi baqar nehilbu flus!E.F.A kien qal darba li se jdahhal taxxa li thallas skont kemm tonfoq u jbaxxi hafna taxxa tal paga,Mela dahhal il vat u wahlilna taxxa doppja .meta ser tifthu ghajnejkhom ja Maltin.
Joseph Xuereb
Sep 21st 2012, 20:55
kliem mitfuh bl-addocc. Jigifieri l-UE ha thallih jissusidja id-dawl? Ghax ma nahsibx li z-zejt se jtuhulu b'xi discount lilu. Jew forsi ha jgholli il VAT biex taghmel tajjeb u li jkun tak minn naha jehodulek minn ohra. Jew forsi ha jnaqqas il-haddiema tal Enemalta biex jinzlu l-ispejjes ghalkemm dan ma jkunx bizzejjed. U jrid jiddikjara b'kemm ha jnaqqsu id-dawl. U il-pagi se JIFFRIZHOM ghal 5 snin shah??? Jista jkun li tant ilhom ma jkunu fil gvern li ma ghanhomx ideja xi tfisser tmexxi pajjiz f'inkwiet finanzjarju dinji. Jien nahseb li dawn l-istatements ikunu mitfughin minghajr preparazzjoni. Ghandi fiducja li malli noqorbu lejn is-siegha tal verita in-nies ser jindunaw minn imexxi pajjiz f'dan il-maltemp sew u min lanqas jaf minn fejn jibda anki jekk jigi il -bnazzi.
George Cutajar
Sep 21st 2012, 20:36
JM still in opposition and already going back on his promises - he has already forgotten the LIVING WAGE.
That is what happens when one dishes out promises on eveything to everybody.
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.
R Zammit
Sep 21st 2012, 20:21
Ma issirx wahda tajba f'dan il pajjiz.
Jade Schembri
Sep 21st 2012, 20:12
Arguments need to have an economic basis. The minimum wage SHOULD NOT be raised since this leads to market inefficiencies. The market dictates what wage should be paid and not unions. If many people are willing to do the same job, then the salaries associated will go down due to oversupply. At such a crucial time of austerity measures, the country cannot afford to become unproductive by keeping wages superficially high. Should the need arise, wages should even go down, not by the hand of the Government or unions but by that of the market.
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.
Rupert Grech
Sep 21st 2012, 20:02
There will always be those jobs that require minimum skills and people to fill them. They need to be protected by a minimum wage because employers will pay them as little as possible . They deserve a decent wage and this will actually boost the economy through more spending and associated job creation. That is why countries have a minimum wage. It is a government's responsibility to get the balance right. The current minimum is too low in my opinion.
C Attard
Sep 21st 2012, 19:55
I think minimum wage should be increased but the government should bear the difference.This might prevent more thefts from contributions like the below
A. A person separated from his wife, who doesn't work, gets Eur450 a month,plus he works ( illegally ) and gets Eur 240 per week, Gross Total Eur1410 ( ps. he works for someone else not SElf employed, otherwise the Total Gross would be bigger. Not only he doesn't pay tax, nor social security but he receives credit notes for his electricity and water bills. On the other hand his ex-wife, gets children's allowance, and also another Eur450 for being a single mother, plus she can work up till 20hrs a week without paying taxes.
On the other hand I got a professional honest office job where I earn Eur1500 a month, have a housewife who takes care of my 3kids. I only get Eur100 children's allowance A YEAR. PAY TAXES, PAY SOCIAL SECURITY, and my wife being a housewife doesn't take anything from the government, even though she spent years paying taxes and social security. I don't even get any credit notes for electricity bills.. Really and truly I am thinking of officially separate myself from my wife and do the same as the person mentioned before. AND ALL THIS IS BEING DONE WITH THE BLESSING OF OUR PARLIAMENT.... DEAR PRIME MINISTER AND ALL OF YOU WHO ARE SUPPOSED TO REPRESENT THE HONEST PEOPLE IN PARLIAMENT...TAKE NOTE..THAT THE HONEST PEOPLE ARE FED UP !!! What all of you are doing is being done only for the sake of VOTES .
Joe Fenech
Sep 21st 2012, 19:51
USELESS UNIONS !!
Victor Vella
Sep 21st 2012, 21:40
Wiehed kien hawn ta` fibra. U l-poplu ghajjat `salbu`. Illum tal-PN salbu u kissru pajjiz.
Joseph Mifsud
Sep 21st 2012, 19:49
As we saw in the pay-wage freeze of the 1980's time will come when wages have to increase because it is impossible to keep prices down, and with EU regulations this is much more impossible.
Lawrence Fenech
Sep 21st 2012, 19:22
There are other ways and means to put more money in the consumer's pockets.
j brincat
Sep 21st 2012, 19:21
@J Martinelli
"And what if Joseph had recommended that minimum wage be increased? Would the GWU, for one, have argued with him?
Typical Labour posture - Heads we win, tails you lose?"
AND which union leader requested a weekly increase of Lm10 (at least NOT €500) in Dr Sant's time.
And on which political party ticket is this person now running?
(jb)
james zammit
Sep 21st 2012, 18:45
Sur Vassallo jekk tahseb li dak li ghidt mhux veru mur fejn semmejtlek u saqsi ghall-verita. Iva jahdmu bla ma jithallsu forsi ghalik xokkanti imma din verita, Min jaf kieku ghandek xi hadd jahdem u ma jithallasx ma titkellimx biex ma turtax . Darba wiehed tradunjonista saqsini-min hu l-ghadu tal-haddiem? Taf x'kienet r-risposta? Il-haddiem stess.
N Zahra
Sep 21st 2012, 18:26
It's frightening how most people don't have even a basic grasp of economics - nor an inkling of the reality about the world we live in. On the other hand it's reassuring that our leaders (both parties) do have a clue and are responsible enough not give in to the fatal popularism that lead Greece into the abyss.
Mr Ludwig Flask
Sep 21st 2012, 18:15
And why not increase minimum wage?
What a shame to PL, the Unions and the Employers Association! Good idea about up skilling though, something introduced by PN years ago, wow! PL thinking on the same lines as PN – something is wrong here I think – Attention PL, the working class is hoping for a change, fresh thinking and new down to earth ideas to run the wheel.
But up skilling costs money so how will the small to medium enterprises cope with training if they can understand the benefits at all? Who will finance up skilling? By TAX incentives, yet another PN implementation! And when skilled, does this means an increase in wage? Opportunities, OK might be, but we need money to live!
How can the minimum wage be increased? This is a big question that no government, nor PL, nor the unions, and nor the associations have an idea how - we need solutions!
Why not tackle the issue that the local economy is stale? Why not tackle the issue about many people making money without declaring the correct income – from plasterers to lawyers, accountants, consultants and so on? Why not tackle the issue that there is no cash flow? Why not question the many foreigners working with lower than average pay?
So help me understand PL, what’s in for the ‘working class’ if Malta gives you a chance?
Increasing the minimum wage might be a good idea after all, lessoning abuse and would provide a means to live a little better!
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.
Joe Morana
Sep 21st 2012, 17:59
Apparently low income workers are in for a rougher time, this time with the blessing of the unions.
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 !
Keith Davis
Sep 21st 2012, 17:58
How about the employers for a couple of months a year reduce their high wages to the minimum wage to be coherent with their declarations?
It is easy to say not to increase wages when we are directing such statements to everyone other then us.
How can a family of four be raised by one wage of around 650 euro or 280 of the old lira? Who are we kidding? For me that is nationalized poverty as the authorities and now to my dismay even the unions support that a family should cope on misery for the employer's sake, indirectly pushing criminality!
Joseph Muscat made that declaration as he does not want to upset the waters not to lose votes, but I am sure inside himself he believes in a raise to the bar.
Oh well lets subsidise the utility bills and pay for who waste. Progressive thinking? yeah right!
D. Xerri
Sep 21st 2012, 17:50
Greed is the name of the game - They just want to Squeeze every employee like a lemon making sure they dont waste a single drop of juice ! In the Meantime EVERY SINGLE Necessity costs more by the month if not by the week and Dont You Dare ask for an increase - Thats NOT POSSIBLE - As if its not enough Stealing Away from Every Employee all those leave days that happen to come on a weekend when before they used to be added to the employees annual entitlement leave ! Now those are Gone with the Wind under GonziPN !
Ahna Qalbna mal-Haddiema :~) - someone said if you remember !
Mario Borg
Sep 21st 2012, 17:46
What happened to the Living Wage promise? Where are the MuscatPL apologists?
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!
Paul Caruana
Sep 21st 2012, 17:28
I have to say that this consensus about not raising the minimum wage is surprisingly mature. We definitely need to improve the employ ability of unskilled workers so that they can go for better paid jobs.
On the other hand, the last thing we need is to drive such unskilled individuals out of their minimum wage job into unemployment, forcing them to become dependent on state handouts..... there are enough categories of able bodied, under 60 Maltese already living on social security!
Angelo Vassallo
Sep 21st 2012, 17:19
@ james zammit
“Illum l-gvern stess qed johloq cheap labour u ser naghti ezempju. Ghandi tfajla tahdem l-ministeru tal-affarijiet barranin f'Malta u dawn jahdmu sieghat wara l-hin u qatt ma jithallsu”
Jekk, u verament jekk din l-istorja tieghek hija l-verita`, nahseb jaqbillek tkellem kemm jista` jkun malajr lil toni zarb tal-gwu ghax xi haga bhal din jiekolha flok il-hobza ta' kuljum u zgur li jsolvilhek din il-problema l-lejla qabel ghada
Joseph E Briffa
Sep 21st 2012, 17:12
Labour keeps repeating itself about the burden of utility bills for families on the minimum wage or slightly above. Excuse me, but aren't these families already benefiting from rebates on their bills? I believe that as a result of these rebates, from which one in five families in Malta benefits, these families aren't paying more than Eur500 p.a., that's about 5% of their income. This is not an unreasonable amount; of course, everyone wants to pay less on services and taxes but the reality of life dictates otherwise.. Therefore what is the whole point of reducing utility rates? It's all well and good if this comes about when the price of crude goes down substantially; but to do this even when the price of crude oil remains the same and even when it goes up doesn't make economic sense, particularly when one considers the substantial debts of Enemalta. Automatic reduction of tariffs would result in further loss of revenue to Enemalta and therefore pushes up its debt to even higher levels. Enemalta must at least cover its production costs, loan repayments, interests on the loans, as well as their amortisation. Surely, there are some ways of reducing production costs, more efficient plants like the Delimara extension is one of the answers. But surely one cannot contemplate the shedding of excess labour at Enemalta in an effort to reduce labour costs. Reduction of manpower will take years, as it can only result from natural wastage i.e. when labourers reach retirement age. So, some reduction in tariffs should be on the cards when the Delimara extension comes on stream, provided the price of crude doesn't shoot up. But to promise reduction in utility bills without giving due consideration to these facts and furthermore to promise that this measure would be implemented without resulting in other burdens on the taxpayer is only a cheap vote-catching exercise unless one has in mind insignificant reductions and/or not immediate ones.
Clive Gerada
Sep 21st 2012, 16:57
And who is going to do the low paid jobs?
fredu debono
Sep 21st 2012, 16:49
issa naraw x'gej kieku. nahseb se jghidilna oqghodu d-dar u nibghatilkom il-paga. daqs kemm ilu jwieghed affarijiet. tal-labour qedin iweghdu l-genna fl-art, basta jahtfu l-poter.
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,
james zammit
Sep 21st 2012, 16:40
Illum l-gvern stess qed johloq cheap labour u ser naghti ezempju. Ghandi tfajla tahdem l-ministeru tal-affarijiet barranin f'Malta u dawn jahdmu sieghat wara l-hin u qatt ma jithallsu u hadd ma jitkellem. Sittin sena ilu hekk konna -ahdem u ma tithallasx. Gonzi jiftahar bix-xoghol u gradwati u universita u mbaghad l-gvern ihaddem dawn l-gradwati b'elf euro fix-xahar u ghidli x'kuragg ikollok tahdem. Dawn ghandhom jitkellm l-unions kollha kemm hawn cheap labour u mhux meta nkunu mal-awtoritajiet nidhru helwin u wara niltaqghu mal-oppzizzjoni nilmentaw. Hon. Tonio hu nota nkella kollha ser jitilqulek.
Ray Buhagiar
Sep 21st 2012, 16:36
We will use Overtime to make up for deficiency in minimum wage. The result is that most workers would sleep during the day in order to create overtime.
It seems that PL solutions are typical for the 70s. I am really surprised that this new movement with so many management experts in their fold could not come with a better proposal.
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?
Ronnie Callus
Sep 21st 2012, 16:33
Whether it is an increase in the minimum wage or decrease in the cost of living what matters is that the people outside feel that they are left with more money in their pockets. I remember in the sixties under the PN government when the rise in salary was given on a percentage basis which favoured more the higher ranks. This is like the same case which we recently faced when the PN took a raise of 500 euro per week and us 1.16 euro per week. Probably the cost of living rise given to us was already taken by the Parliamentarians as well to be more human.
Mario Micallef
Sep 21st 2012, 16:32
these are the same selfish people who under the excuse of being competitive, urged the current government to withdraw the addition to vacation leave entitlement for those public holidays which occured on a weekend. There is only one truth...the more I have the more I wanna hoard!! but when things go wrong the middle class are always the ones who need to make good for tax revenue shortfalls etc etc...you have NO SHAME!
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 !
Jurgen Farrugia
Sep 21st 2012, 16:28
So Joseph has made another u-turn and contradicted himself yet again when until a few months ago, almost in every post budget speech he used to mock the Government of, and I quote "giving the people a few cents increase" while the ministers took 500 euros increase a week and now, the minimum wage should not be increased. Like Tonio Fenech and the Prime Minister used to say, the minimum wage increase should reflect the increase in inflation and there are other ways to tackle the problem of low income workers, like providing training and Malta attracting certain Value Added industries like the Aviation industry, Pharmaceuticals factories and Financial services firms to Malta, instead of the MLP's "fabbriki tat-tessuti".
One has to remember that low income workers saw an increase in children's allowance, vouchers for water and electricity bills and new tax ban for parents among others. These all help tackle this problem. If a family used to live off of the husband low-income wage a few years ago, now the Government made it more attractive and easy for the wife to return to work, which in return helps raise the family's standard of living. Also that women is paying NI contribution and sometimes tax, which is going to Malta's coffers. The Government's way is the most sustainable way to tackle this problem, which now is Joseph Muscat's and GWU way as well.
Mary Borg
Sep 21st 2012, 16:20
May I remind you that the salaries' collective agreement for state employees expired in 2010 and no new agreement has been created or renewd yet.
Richard Caruana
Sep 21st 2012, 16:12
And remember that the GWU had agreed on a wage freeze with the MLP Government of the late 70s and early 80s, for years on end.
So would it be history repeating itself?
Richard Caruana
Sep 21st 2012, 16:11
What would the GWU say if the PN Government decides that there's not going to be any cost of living increase in the next budget?
All hell would be let loose! What a farce.
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
Alfred Cassar
Sep 21st 2012, 16:11
That's it!, Back to the Mintoffian Economy, A tad taste of Leninism!, Once again we will see the re-marriage of the GWU and the MLP, this time, with the MEA on the side.
J Martinelli
Sep 21st 2012, 15:56
And what if Joseph had recommended that minimum wage be increased? Would the GWU, for one, have argued with him?
Typical Labour posture - Heads we win, tails you lose?
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?
Charles Grixti
Sep 21st 2012, 15:37
The problem that I see is that employers form their own lobby group to exert pressure on politicians and governments, whilst the largest and strongest group - the working men and women are floundering without any reprsentation at the higherst levels. This is the problem as I see it and not only in Malta but in large countries everywhere - business and corporate interests always have the ears of Governemnt whom they persuade to impliment policies in their group's interests - making a mockery of democracy since it starts to represent only the interest of business and leaves working families and pensioners out of the loop. Effectively, democracy has been usurped and what we have is classical fascism, that is the rule of big business and goverment working in tandem for their mutual benefit against the interests of the working classes.
Mark. Galea
Sep 21st 2012, 15:29
HofraPL = wage freeze ... back to the golden 70's
Angelo Polidano
Sep 21st 2012, 15:29
To Carlos Ellul. Agree with your comment but let's not forget those people that for one reason or another they can't better themeselves. We do not have the rule of the jungle here: Survival of the Fittist.
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.
Alex Falzon
Sep 21st 2012, 15:27
Minimum Wage should be increased cautiously but employers should their part to give a decent pay for both skilled and unskilled workers.
A clear example is the hospitality industry... this is Malta's main economical pillar and most of employees are skilled, trained and experienced.. and yet their income is low... a simple receptionist in a 5 star hotel gets 900euro per month imagine a cleaner??
Not to forget as well that employers whilst at an interview they have the arrogance to ask how much one pretends for the position being offered... most probably if an individual raises more than expected he will not be given a chance to prove himself...
Nazzareno Cortis
Sep 21st 2012, 15:24
Same old words and statements whenever a budget is approaching-------So it is ok for the wealthy to get wealthier (remember 500 ewros increse )while the workers carry the burden!!!! You impress nobody mister!!!
GL Calleja
Sep 21st 2012, 15:19
Sometimes elections make for strange bedfellows and they also bring the best and worst in people.
Albert Critien
Sep 21st 2012, 14:19
It appears that unions and opposition are either forgetting or ignoring the pensioners who only get a measly few extra cents when there is a cost of living adjustment, does the opposition mean that if they are returned to power those people who managed to survive will be on the way to starvation
Mario Busuttil
Sep 21st 2012, 13:43
Addio il paroli li kien isir qabel...., mela dawk is suggerimenti li ghamlu il Caritas ,u Dun Victor Grech ,issa mhux ser jigi appogjati minn ghand hadd? ..sewwa jighdu mill kliem ghal fatti hemm bahar x'jikkumbatti. VIVA l- Employers.....u ma ninsewx ukoll li hawn minnhom min ihaddem il barranin b'inqas minn minimum wage ukoll !!!! Dejjem il kbir fil vantagg halli jhaxxen il bwiet tieghu,pero haga tajba li hija zgur ..hija li hadd ma huwa ser jiehu xejn wara mewtu......
carlos ellul
Sep 21st 2012, 14:26
If a person wants to be paid more then minimum wage then he should better himself.
Alex Falzon
Sep 21st 2012, 13:14
What are they proposing? The article says nothing concrete...
Phil Bell
Sep 21st 2012, 12:32
Please excuse the ignorance, but what is the minimum wage and what is the maximum amount you can earn before you start paying tax?
The UK is £6.08 (€7.72) I believe, and the amount earned before paying tax is appx £8800.
The powers that be suggest that the minimum wage is justified as other members of the EU who come to work here think it is ok and do the jobs that the locals do not want to do.
E. Azzopardi
Sep 21st 2012, 12:14
We can't keep increases wages, whatever type of wage, if one does not work for it.
Increasing the minimum alone, is no incentive. Can we please move forward, open our minds and shut off from the blessed past? We are behind many others, who were behind us some years ago!!!!
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.
joseph saliba
Sep 21st 2012, 11:50
Still on time to inform Tonio for the next budget. Has it been discussed in the MCESD?
paul camilleri
Sep 21st 2012, 11:48
well it was the labour party that introduced the minimum wage as well as the wage freeze maybe this is what we should expect if LP (LP = long play??) to do should they be elected into goverment?
joseph saliba
Sep 21st 2012, 11:27
Did they ever inform Tonio of it? Still in time for the next budget.
Victor Vella
Sep 21st 2012, 11:12
But it was not only the GWU – Labour’s traditional ally – ... Now it could be more appropriate and more pertinent to say: But it was not only the UHM- Nationalist`s traditional ally.......As regards the minimum wage when it was introduced in the UK and in Malta through Mintoff the PN said that now unemployment will increase and many firms will close their doors. Nothing of that happened. When the bonus was introduced, again by Mintoff, the PN came out harping the same notes of doom and gloom. When EFA came to power he did not even kept the minimum wage, kept the bonuses, but increased twice the bonuses given by MLP. Nobody in the employers` regime came out wailing and nobody closed its doors. This is the hypocrisy of both the PN and employers.
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.
Anthony Falzon
Sep 21st 2012, 10:57
tajba wkoll, partit suppost tal haddiema irid jzomm il pagi minima baxxa.
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!
A M Bonello
Sep 21st 2012, 10:52
By keeping the minimum wage low means minimum wagers cant save any money to travel to the EU and broaden their horizons,or even plan a future by that criteria.
By keeping the minimum wage low means people will be envious of our EU counterparts.
By keeping the minimum wage low means more minimum wagers will have to work more,more part time jobs,less time at home that creates a minimal quality of life,family problems,stress and a feeling of hopelessness.
Since we rely on imports then we need to keep up with the EU cost of living since we rely on imports.
We must keep up with EU wages after all we also form part of a competitive European market.
Increasing productivity is obviously a way forward,however productivity of what?Soft Drinks?Beer?
How about the Unions fight the food cartels,the food importers whom are charging any price they want(way more then European prices!),shops whom decide to charge more then any where else in Europe.Medicine importers too!
(No wonder people buy on line thanks to the EU)
I can guarantee that these are the culprits ,apart from the government's harsh utility bills,whom are hurting our pockets.
Super market food chains are the only solution in this country for at least we know that we are paying European prices,the same prices everyone else is paying in Europe.
More generic medicines are needed to help the underprivileged (the pensioners,the minimum wage earners).
We pay more in MALTA.
WHO'S GOING TO SAVE US LAWRENCE "OLIVER TWIST" GONZI or JOSEPH "ROBIN HOOD" MUSCAT?
Not a solution in sight.
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!
Robert Agius
Sep 21st 2012, 10:33
“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.
Yes? How? Increasing benefits that will be paid for by the tax payer, mainly middle class salary workers?
“Education is important, not only in terms of schooling but also teaching people how to use their money judiciously,” he said.
Hmmm, how does that work exactly? If one where to do to so then most of the businesses would close I'm afraid. Employment would fall. Of course, some need to work harder, for less, just to keep others (self-serving lot) happy, Eduction an easy card to play but one must ask who are the ones who generally don't have a tertiary degree? Vast part would be - those whose parents are on minimum wage. A vicious circle that is very convenient for some. Minimum wage should cover the costs of basic needs and the current one clearly does not. Of course, there are many with a tertiary degree who think that the certificate is not worth the paper it is written on but that's a completely different story.
Robert Agius
Sep 21st 2012, 10:15
Surprise! Surprise!
M. Bezzina
Sep 21st 2012, 09:36
He he hekk sew.......ara kif tista timxi aw
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