FOR.U.M warns against not raising the minimum wage
"The FOR.U.M group of trade unions has expressed concern over reports that employers and some trade unions agree about not raising the minimum wage.
The Times reported yesterday that employers and unions backed a pledge by Labour leader Joseph Muscat not to raise the minimum wage but instead take other measures to address related problems, including up-skilling and increasing employability while reducing utility tariffs.
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.
The Union Ħaddiema Magħqudin said it favoured more measures to make pay last, 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.
Malta Employers' Association director general Joe Farrugia said the association wanted a minimum wage that was enough to sustain people but not drive them out of a job.
"We want any government to invest in improving their skills so they can move on and improve their working conditions and their wage.
But FOR.U.M said this morning it seriously begs to differ on this matter.
It recalled that a Caritas study last March has found 6,316 people could not afford the basic necessities for a decent living and that low income families were struggling to survive.
Caritas had proposed that the minimum wage should go u from €158.11 per week to €180 per week.
"Whereas FOR.U.M. agrees with the general up-skilling of workers, increased employment and a reduction in the Water and Electricity tariffs, this would definitely not solve the inevitable.
"Malta would still have workers on the minimum wage and the present €158 Euros weekly only means a rougher time for these workers. It is also pertinent to point out that in Malta there are skilled or semi- skilled workers paid on the minimum wage," FOR.U.M said.
It agreed with the MEA Director General that workers should at least have a minimum wage that is enough to sustain people but not drive them out of work.
"FOR.U.M. disagrees with those who state that an increase in the minimum wage could result in job losses. We have already and repeatedly heard this same argument being brought forward by these same sources in connection with the Cost of Living Adjustment and every time workers are given an increase in their salaries following a Collective Agreement."
The group called for talks among all social partners and other entities on the matter.
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Alfred Falzon
Sep 24th 2012, 22:32
New Labour's sudden u-turns and muddled thinking embracing all and sundry may fool some naive people into thinking that it is basically different from the PN, but all is pointing to a tower of Babel with an eventual power struggle that will solve little or nothing of Malta's ills.
From the proposal of a "living wage" to a frozen "minimum wage", from "a new upgraded Middle Class" to a forsaken lower class with very little thought spared for those struggling to survive on a minimum wage, from a former "workers' party" to a so-called "movement" now embracing elements of the extreme right, the PL is proving to be a party of opportunists and turncoats who have jumped on the bandwagon in their quest for power!
Those with a voice in the desert, and they are legion, are far from amused!!
Alfred A. Falzon
Victor Laiviera
Sep 23rd 2012, 16:45
As usual, the PN's only weapon is spin. Take a phrase out of contest, twist it and push it for all it's worth, hoping the gulible will swallow it whole.
There will be no freeze. Muscat simply said that, until the economy picks up, there will be no extraordinary increase except for the yearly COLA adjustment which will continue to be paid as usual.
Now find something else to play with.
Ronnie Callus
Sep 23rd 2012, 08:44
Mhux bizzejjed hadtulna l-festi li jaqghu fil-weekends, issa tridu li tiffrizzaw l-Minimum wage ukoll !!!!. Ergu tuhomna lura l-festi li hadtu u forsi nirrangaw xi haga, mhux dejjem tahsbu ghalikom biss !! u l-haddiem dejjem dbellawlu go rasu. Mela hekk sew , il-prodotti jgholew u l-pagi jibqu l-istess. Ara taghkom hsibtu ghaliha billi jibqalkom izjed fil-but kif ukoll maghkom il-Gvern li ta 500 euro fil-gimgha lilu u lil shabu bil-mohbi ghax donnu stahha jghidilna qabel.
Joe Tabone
Sep 22nd 2012, 23:10
What happened to Labour's 'living wage'???
When you have such U-turns from Opposition you can only imagine what will happen when in Government!
John Camillleri
Sep 22nd 2012, 21:56
It only boils down to:Labourites support Joseph Muscat in whatever he says, no matter what it entails. If the proposal came from PN, their cry would be just the opposite. The employers' interest is just to keep wages low, understood thoughnot agreed with. The guarantee for workers is surely neither with Labour nor with Joseph. Past experience shows this very clear.
George Joseph Cauchi
Sep 22nd 2012, 18:49
Are we going to have a Labour Government freezing wages again? Revising the minimum wage upwards ,sensibly, will not affect the economy as is being said. Other labour controls can be put in effect like work permit controls on foreign non-EU workers and ensuring labour force is legally engaged and better skilled. I understood that the Unions were against precarious work so why agree to a wage freeze on minimum wage? Decreasing energy bills will help employers and freezing minimum wage will help the employers' pockets and no one else.
J.C. Borg
Sep 22nd 2012, 16:37
Am I to understand that FOR.U.M., while pretending to protect its members, does not care about Malta and the Maltese in general??
It is obvious that if wages are increased at the moment, employers will have to either close shop or send some of their workers to register for work (at our expense).
Denis Pace
Sep 22nd 2012, 19:31
Reason is simple....FORUM represents workers on Government payroll and do notr give a heck about all those workers to strive to make a living directly or indirectly from foreign investments, as in Manufacturing., Tourism etc.
Joseph Brincat
Sep 22nd 2012, 16:33
FOR.U.M warns against minimum wage freeze !!
THE ONLY > FREEZE < THE GOVERNMENT SHOULD DO IS
THE DEFICIT THAT GONZI PN IS CREATING !!
Silvan Said
Sep 22nd 2012, 16:01
If raising the minimum wage is such a big issue and would create such a ripple effect on the economy the what the PL should be looking, should it make it to government, for are solutions to make our industry more competitive and createcan environnent where workers can demand higher wages.
Mr Adrian Zahra
Sep 22nd 2012, 15:50
there is a solution to incentivise better wages and that is tying corporate tax to wages paid.
B. Cachia
Sep 22nd 2012, 17:31
The objective of both political parties, I think, is not to drive as much business as possible away from Malta, but rather to attract it.
Mr Adrian Zahra
Sep 23rd 2012, 04:25
yes of course no one said corp tax should increase. instead corp tax should be deducted special bonuses above the present salary levels. It is a clear way of how goverments get less involved in the running of the ecocomy and increases get tied to increases in efficiency as the clearest of efficiency indicators is profit. I am sure that enterprise is more willing to give money to its employees rather than paying it as tax to the goverment.
Andre Grech
Sep 22nd 2012, 14:23
Joseph Muscat promised you Mintoff's ideas will be reborn in him. So he immediately offered a wage freeze. You see how Dr. Muscat keeps his word. When he will be PM he will go back to bulk buying and ban technology. Labour won't work.
Joe Morana
Sep 22nd 2012, 14:22
"employers and unions backed a pledge by Labour leader Joseph Muscat not to raise the minimum wage but instead take other measures to address related problems, including up-skilling and increasing employability while reducing utility tariffs"
Up skilling and increased employability are very positive and desirable measures which are beneficial for workers and the economy, but they are definately no subsitute to the COLA and niether is the reduction of W & E tariffs.
The Labour Party's pledge supported by the two major Unions does not augure well to low icome workers . Meditate.......
J Cauchi
Sep 22nd 2012, 14:21
The FORUM shyould first of all think about the state of the pensioners. Pensions of all employees do not rise everytime the salaris are increased. On the contrary, pensions remain stastic, apart from those few cents given as an increase for the cost of living. This method is bringing pensioners fil-livell tal-faqar. The FORUM should remember for instance that certain category of employees opt to sell so to speak one third of their pension when they reach the age of retirement for 12 years. But when the 12 years pass, their pension remain the same as it was when they retired. This is unfiar and unjust. FORUM should also remember the Members of Parliament and now the Judiciary are privileged for their pensions increase everytime their salary is increased. I thought that the time of the privileged few was gone. But I think I am wrong. FORUM and other unions pl act and act urgently. And this for the sa,e of fairness and justice.
Ms.D. Galea
Sep 22nd 2012, 14:09
The more the minimum wage goes up , the more will the cost of living...for everyone.
Fact of life.
J Martinelli
Sep 22nd 2012, 14:07
As usual, Joseph opens a can of worms but has no logical solutions.
"Upskilling" is one prime example. Well, glory be, but does he still have no idea of methods already in place enabling anyone to upgrade his or her skills? Full time, part-time courses, ETC and other agencies are open to all.
"Other measures". Yes, Joseph what are they? What does the Labour Party have in mind?
"Increase employability". Good, since Malta does have a very serious unemployment problem! Says who?
"Reduce utility rates". Labour's favourite gripe. Well Joseph go ahead (if you become PM, that is) and reduce utility rates. Will your own bill go down as well? Only fair, you say? Then your proposal favours also the people who can well afford to pay the present rates (already partially subsidized), marginally helping the low income earners, while increasing the cost to the Treasury, leaving no alternative but to increase taxes which will affect the middle class taxpayers whose buying power will decrease putting more pressure on government revenue because of lower VAT contributions! Typical Labour cockeyed 'solutions'.
The government never threatened to 'freeze' minimum wage, but prudently, it will attend to the matter at the right time. For obvious reasons, this is not the right time. The Labour Party, on the other hand is well versed in the 'freezing' processes.
With regard to Caritas, it seems that this agency has done extensive research to a point of identifying those who 'cannot afford basic necessities', down to a definite number - 6316! Excellent, so it knows who they are and therefore it begs the questions - why are they in this predicament? Are they already receiving government help in various forms? Do they include 'single mothers, fathers unknown'? Does this number include those who are simply not willing to go out there and join the workforce? Does this number include the 'unemployable' through no fault of their own due to some kind of disability? Do these people not already receive government assistance?
No matter which government is in power, no matter in which country, it would be foolish to assume that the 'poor', the 'underemployed', the 'minimum wage earners' can be made to disappear. There will always and everywhere be 'the poor', as they always have been since biblical times. "God helps those who help themselves". Good to remember that, Caritas et al. Increasing minimum wages will not help the ones who do not want to work. Increasing minimum wages risking loss of jobs and making Malta less competitive is even worse. Increase in productivity enabling employers to pay more than minimum wage makes far more sense.
B. Cachia
Sep 22nd 2012, 17:34
Upskilling does not appear to be working very well at the moment, otherwise productivity would be growing pretty quickly, which it isn't.
Alfred J. McEwen
Sep 22nd 2012, 13:43
Alfred J. McEwen
Can anyone tell me how to ``upskill`` the security guards, construction workers, Pizza and Burger servers and couriers, and many people working on unskilled or semiskilled lines of work? These people need to pay their bills, rents and loans like everyone else, so while the cost of living across the board continues to soar, they would be stuck with a fixed minimum wage and seeing their already precarious standard of living go down even further. A sure fire way to create an ``under class`` in our society is to effect such a ridiculous measure. The COLA to date has given the general public the princely sum of I.i6 Euro per day while the ``fat-cat`` politicians the likes of GonziPN help themselves to a 500 Euro per week pay rise. Where the fairness and ``values`` exist in that stunt alone, beats the hell out of me. FOR.UM should take measures to see that minimum wage stagnation is never allowed to happen while the cost of living continues to go through the roof and effect the quality of these people`s lives.
G Schembri
Sep 22nd 2012, 14:12
And where will their employers get the money to pay them from? The will surely have to increase the price of their service which will automatically increase the price of other things, raising wages is not necessarily the solution. If we can find a way to decrease the cost of living it would work out much better for everyone. People who earn a lot can contribute more in taxes and still enjoy a good standard of living if the cost of living is decreased.
Alfred J. McEwen
Sep 22nd 2012, 18:21
Alfred J. McEwen
@ G Schembri
Decreasing the cost of living would be a very good idea, however you and I know that deep down it will never work, mainly due to external market pressures. The only way to bring down the cost of living is for businesses and government to stop capitalising on goods and services that are effected. As an example, the increase in fuel jumps up in price by not one or two cents, but an increase of 6 cents or more per litre, whereas a 2 cent increase would have sufficed, the extra 4 cents go into consolidated revenue,..same goes with gas where the consumer is slugged with between a 10% to 20% increase in price not justified by the market value of these two products. One can quote another example of `profiteering` with vehicle registrations of non-commercial vehicles with a cubic capacity of over two litres went up from 350 Euro to a whopping 504 Euro in one hit. One also can mention the cost of an average size family car sold here between two and eight thousand Euro more than one purchased in mainland Europe or the U.K, due mainly by government taxes seconded by the profits of vehicle distributors who are not to blame to some extent as there must be some profit made. So the list goes on with regard to price hikes across a broad spectrum of our existing economy. Therefore, given that we live in an inflationary environment, it stands to reason that people living on the minimum wage have to bear with an ever increasing cost of living, hence wage stagnation in this case is out of the question. The onus is on the government to reduce taxes on goods and services to a reasonable level, but unfortunately will find that very difficult while government spends public moneys on unnecessary projects and substantial pay rises to itself and with the deficit going through the roof at the same time.
David Scicluna
Sep 22nd 2012, 13:30
Dr.Muscat never mentioned a wage freeze. . He said it is not wise to increase the minimum wage unless it is sustainable to do so due to the ripple effect. This does not mean it will not be increased by the usual COLA agreement. This makes a lot of comments below insignificant.
Joe Vella
Sep 22nd 2012, 15:34
David, it is your argument that is insignificant. Increasing the minimum wage and COLA are two different things. COLA, everyone gets it, regarding f your wage/salary. Increasing the minimum wage get it only does that are earning exactly what the phrase means- the minimum wage. Stop making pathetic excuses for Dr. Muscat.
David Scicluna
Sep 22nd 2012, 23:47
Joe, it is you who are making pathetic arguments. Since COLA and the minimum wage are two different issues, not increasing the minimum wage DOES NOT ammount to a wage freeze. Now, what exactly is your argument?
George Calleja
Sep 22nd 2012, 12:17
Sorpriza kbira li l-FORUM hareg kontra l-labour, l-GWU u UHM dwar il-paga minima ghax is-soltu jaghmlu kollox bhall-ohrajn!!! Diga beda jberraq li specjalment l-GWU se toqghod siekta ghal kull ma jghid il-labour....bhal fi snin imghoddija!!!
P. Zammit
Sep 22nd 2012, 13:46
@G.Calleja ... and you are surprised ? the GWU has been the PL's lackey since day one.
Robert Callus
Sep 22nd 2012, 12:11
The PN has always been for the business and contractor class. But the PL, by moving closer to the PN than ever before, has shamefully betrayed the same working classes it used to support.
They're trying to fool people by the pie in the sky of lowering their electricity bills. They have discovered that they may use alternative energy, exactly what AD has been saying all along.
Alternative energy will reduce the costs (apart from the health and environmental benefits). But not overnight like the PL are trying to give the impression.
And in the meantime, people can't make ends meet.
Patrick Zammit
Sep 22nd 2012, 12:35
Alternative energy costs much higher than energy from conventional means. It can only be sustained by heavy subsidies from the tax payer.
John L Galea
Sep 22nd 2012, 11:59
First check your facts before starting shooting words from your behind. Jut a little part of what he said was that it is not economically viable to raise the minimum wage as it will end up in a vicious circle and cost of living would go higher and employers would be constrained to fire people as they become less competitive. Therefore he said that it makes more sense to create more economic activity which permits the government to lower the cost of living such as the pledge of reducing the energy tariffs. He said also that he won't make promises which are usustainable and which he couldn't keep.
Joe Vella
Sep 22nd 2012, 15:42
"it is not economically viable to raise the minimum wage as it will end up in a vicious circle and cost of living would go higher and employers would be constrained to fire people as they become less competitive."
Is this something new that Joseph Muscat, the PL and the GWU discovered lately. Comments like yours only show how pathetic the self professed defenders of the little guy are. City only confirms that Joseph Muscat and the PL cannot be trusted.
C Mercieca
Sep 22nd 2012, 11:59
Dak li jinagħad fuq il-paga minima hu kollu korrett u importanti li nħarsu l-industrija l-aktar dik tal-manifattura. Irridu ngħidu iżda li hawn ħafna ħaddiema li qegħdin fuq il-paga minima li għandhom kwalifiki u kapaċitajiet li jistħoqilhom paga aħjar, iżda l-kumpanija li jaħdmu magħha tipprofitta minnhom. Ma ridux ninsew lanqas li l-paga minima ma telgħetx pari passu mal-inflazjzjoni reali. Lanqas ma hi l-paga minima 60% tal-pagi kollha li jieħdu l-ħaddiema. L-kumpaniji jridu jkunu kompetittivi mhux billi li lill-ħaddiem ma ta' tihx dak li jistħoqlu iżda billi tagħmel investiment, tagħti taħriġ u tikkontrolla ħela b'mismanangement li jkollha. Irrid ngħid li ma naqbel xejn mal-mod ta' għaġġla li l-GWU ħarġet taqbel, għaliex turi li jew kellha studju ħażin meta talbet fil-proposti li għamlet lill-partiti jew inkella ma tafx x'inhi tgħid u sempliċiment tagħmel it-talba biex tkun bħal ħaddieħor.
Pat Hobson
Sep 22nd 2012, 11:49
First of all Joseph Muscat didn't say that the minimum shouldn't be raised. He said first let's increase productivity, and the well-being of the country, strengthen the economy, take measures that will lower the cost of living, such as the water and electricity tariffs, and then think about raising the minimum wage. He said first that the burden of the lower classes should be eased through lower prices and other measures. He didn't say that he ruled out an increase in the minimum wage. Don't forget that if the minimum wage is increased, all the other salaries will have to be raised accordingly, or else diminish the "concertina effect".
Eugene Sapiano
Sep 22nd 2012, 11:34
But THE COLA should be retained!
John Zammit
Sep 22nd 2012, 12:52
No one mentioned the COLA just the minimum wage
G Caruana
Sep 22nd 2012, 11:19
"a pledge by Labour leader Joseph Muscat not to raise the minimum wage"
...ooppps! kmieni bdejna
anthony sultana
Sep 22nd 2012, 11:18
The only party that is calling for a raise on the minumum wage is the green party.AD that we must support to show the government and the LP party what we realy realy realy want.This is how one have to live on the misery minimum wage,pasta with with just tomato sause and chicken wings on sundays and holidays only.Shoping prices goes up every month and the minimum wage is frozen already.Wow what a progresive movement..People wait and see, I talk you later.
B. Cachia
Sep 22nd 2012, 13:45
The problem with a high minimum wage is that it shuts many people out of employment. In continental Europe, where they have high minimum wages, they pay the price through very high unemployment rates. At least, with the Maltese approach, people work and we don't have people depending on society or resorting to crime.
G Schembri
Sep 22nd 2012, 14:21
AD can say what they like since they know that they will not be on the government side. They can even pledge to give all workers 500 euro pay raise a week.
A vote for AD is a wasted vote, in last election they had more than enough to elect one candidate, and all those votes went down the drain, they weren't even capable of protesting (like the PN did in 1982-1987) that the will of the people was not being respected. The majority of the Maltese don't even know that AD had more votes than the difference between PN and MLP that gave the PN the extra seat.
I have lost all faith in AD, they are like a bunch of kids playing at politics.
Joe Morana
Sep 22nd 2012, 10:53
The FOR.U.M group of trade unions is correct to express its concern over reports that employers and some trade unions agree about not raising the minimum wage.
It is common knowledge that the emploiyers have forlong been lobbying to remove the COLA.
Apparently the Labour Party succumbed to the employers' lobby and has made an acute 'right' turn.
Regrettablly and more surprinsingly, the two major trade unions fell for it too, leaving low income workers to face more uncertaintly and facing a rougher future. Are the Labour Party and the GWU and the UHM suggesting to do away with the COLA???
Essentially the Water and Electricity tariffs are included in the COLA awards as the COLA is suppose to compensate the workers against the ever rising cost of a number essentail goods and services.
I beleive that it would be more socially equitable to safeguard workers purcahsing power at source by adjusting the tax-bands ( promised by the current Government but not yet delivered) and via tax rebates on essential services eg. health and further adult education .
Joseph E Briffa
Sep 22nd 2012, 14:19
@Joe Morana..people on the minimum wage do not pay income tax. The government has given tax cuts for four years running and women going back to work have also been given a tax-free year or two, parents with children going to private schools have also been given tax relief. It's only the reduction of the top IT rate to 25% that has not been adopted. And the only beneficiaries from this measure would be high income earners in the EUR20 000 - EUR35 000 bracket
B. Cachia
Sep 22nd 2012, 19:23
@ Joseph E Briffa: The Government has not "given tax cuts for four years running". Nor has it kept its promise to reduce the top rate of income tax. And if your Nationalist Party expects to win any elections while trampling on its natural supporters, the middle class and upper middle class, and treating them like dirt, then it will be sorely disappointed.
E. Mifsud
Sep 22nd 2012, 10:34
Addio l-living wage ta' Muscat; u dan ghadhom mhux fil-gvern, ahseb u ara kemm se jzommu dawk il-weghdiet kollha!
Wally Vella-Zarb
Sep 22nd 2012, 14:20
Tidher li għadek ma fhimtx id-differenza bejn ‘minimum wage’ u ‘living wage’.
B. Cachia
Sep 22nd 2012, 17:41
Il-'living wage' tista' tintlahaq biss bit-tkabbir fil-produttivita u huwa dak li qed jghid il-PL. Hadd ma jista' jiddeciedi 'isma, minn ghada l-pagi se jirduppjaw' ghax kieku kull ma jigri jkun li jaghlqu l-kumpaniji kollha li hawn f'Malta.
Please choose the reason of your report below: