PL change of heart on ‘living wage’ proposal
Malta has the 11th-highest minimum wage in the EU.
The Labour Party has declined to elaborate on its change of heart concerning an increase in Malta’s minimum wage.
Last week, Joseph Muscat said it would be “irresponsible” to raise the minimum wage now, given the state of the local and international economy.
The position represents a significant shift from the Labour Party leader’s earlier calls for the introduction of a ‘living wage’ – a calculation of how much money a person needs to live a decent life – that would be significantly higher than the current minimum wage of €158 per week.
Precisely two years ago, at the height of the global economic downturn, Dr Muscat had spoken about the living wage in glowing terms, describing it as an “exciting new concept” that Malta would do well to introduce without delay.
A report by Church organisation Caritas released last March further fuelled calls for Malta’s minimum wage to be raised, with researchers finding the current level was not enough to ensure a decent standard of living.
The Caritas report estimated that breadwinners on the minimum wage needed an extra €1,600 per year to live a decent life, and called for it to be increased to €180 a week to make up for the shortfall.
At the time, Dr Muscat was careful not to tie himself to Caritas’ calls, saying it would be “useless” to raise the minimum wage without first cutting costs.
He has now cemented that position, saying that PL in government would help families on the breadline by reducing energy tariffs instead.
The Sunday Times asked the PL whether its proposals for a living wage had been scrapped, what had prompted the party’s change in position, when would an increase in the minimum wage be justified and how much of the Caritas-calculated €1,600 shortfall the party’s proposed reduction in energy tariffs would recoup.
A party spokesman said the PL’s stated position was “the best policy to ensure that a family’s income sustains its well-being,” given the current “and foreseeable” international economic scenario. Social partners, the spokesman added, agreed with the PL on the issue.
While both the General Workers’ Union and the Union Ħaddiema Magħqudin have backed the PL position, the Forum group of trade unions yesterday insisted Malta’s minimum wage remained inadequate.
Forum’s stand was commended by Alternattiva Demokratika. AD derided Dr Muscat for his recent comments, saying they were a betrayal of the working class.
“We remain shocked that Labour has now allied itself with the PN and big business in opposing such a basic policy for social justice,” AD chairman Michael Briguglio said.
With the Nationalist Party silent in the ongoing debate concerning minimum wage levels, AD’s stance makes it the only party in favour of a wage hike.
Malta has the EU’s 11th-highest minimum wage, which is far ahead of the €231 monthly benefit doled out in Lithuania but also lower than the sums paid in Cyprus and Spain.
Minimum wage levels in more established EU states such as the UK, France and Benelux nations remain a distant hope.
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R. Gauci
Sep 23rd 2012, 15:18
Li tgholli l-minimum wage drastikament mhux facli, dan ikun ifisser piz enormi fuq l-industrija, businesses, hwienet, lukandi etc. Jista jwassal ghal hafna sensji wkoll, il-fatt li l-PL ghamel din l-istqarrija hi sinjal ta` maturita' u li mhux se joghqod iwieghed l-angli jizfen biex jisraq l-elezzjoni bhal ma jaghmel GonziPN. Kullhadd jixtieq li jkollu paga oghla imma anqas ma trid taghmel dan billi tkisser il-pajjiz ghax jekk tgholli l-minimum wage imbaghad trid tgholli l-pagi l-ohra u flus mnejn? Inkomplu niddejnu? Nispiccaw bhal Griegi?
Joe Tabone
Sep 23rd 2012, 16:41
@R Gauci,
If the PL wants to be taken seriously they should come up with serious proposals and not first mention the 'living wage' and now put this proposal aside and come up with a wage freeze.
NO credibility..................Labout won't work!
J Martinelli
Sep 23rd 2012, 14:14
Confusion reigns supreme. Way to go Joseph, dinosaurs and the Party as a whole. Your credibility will be enormously enhanced. Keep it up!
Living wage? Minimum wage freeze? Not now, perhaps later? Cheaper electricity? Safe with students but not with stipends? Lower taxes, but fees for Health care? 'Party' or 'Movement'? Moderate or extremist? Modern while still looking back and embracing its own failed policies of the seventies? Red ties now taking on a blue shade?
Hawduni ha nifhem.
Charles Grixti
Sep 23rd 2012, 14:05
What more proof do people need that political parties are now 'oppo-same'? That is they are taking direction from one source only and are there only to give the electorate the illusion of choice when in actual fact we only have one system in operation throughout the world, the neo-conservative model that is there to safetguard and implement the fiscal and social policies that benefit only the top 1%.
Do not forget that Italy and Greece have 'technocrats' Prime Ministers, unelected and imposed directly from Goldman Sachs and even the head of the European Central Bank is from the same Bank, and that former British PM Tony Blair of the 'Labour Party' was a Right-wing elitists who supported the Right-wing Republican President George W. Bush' policies 100%. That the Labour party has abandoned its power base and gone Right-wing is not just a Malta phenomenon so please look outside our shores to see the disturbing trends.
Joseph Camilleri
Sep 23rd 2012, 11:58
ahhhh sigh our dear joseph is finally realising that he is trying to wear the shoes which do not fit.
sorry joseph but you are too young to be prime minister. I think you should apply for the job at least when you are in your mid 40's you need to ask for some coaching. There is not one person within the lejber camp who is a winner in running the state. kmb 1984-87
alfred sant 1996-98
I do not think with all these whims you get every new day with different ideas all contradicting the one you had yesterday. I think industry and jobs need a bit more stability for that.
sorry joseph but you are miserably unqualified.
Mr leo attard
Sep 23rd 2012, 13:15
mr camilleri, you cannot judge the horse before you put him on the track. I do know that the present horse has not achieved what he proposed --- has the deficit decreased? No? Why did we let Malta accrue a 5.000,000,000 euro debt? these are facts! and let me tell you another thing -- a 1.16 euro a week increase is practically no increase at all! Doesn't even pay for a small cappuccino at Mc Cafe!
J.C. Borg
Sep 23rd 2012, 17:23
@ Mr Attard - "you cannot judge the horse before you put him on the track" - even if you see a lame horse??
Charles Vella
Sep 23rd 2012, 11:35
If the wage is raised, then everything will go up... that's how it works, according to the GDP! If wages go up, and products or the VAT remain at the same price or rate, then hevean help us... we will be only begging for a bail out! Finally Labour has realized that this cannot be done!
Sorry Labour, you have much to learn on how to govern, and how about getting rid of the old Mintoff guard which is circuling like a snake in the party?? Maybe, in 5 years time, you will earn my vote! But not this time, for sure.
G Caruana
Sep 23rd 2012, 11:27
PL seems to think water/electricity bills are the only bills in existence....so one can't use a wage increase to pay his loan or other commitment of his choice, xieraq jorhos bxi 10 cents issa...u dawk icapcpulu
Pat Hobson
Sep 23rd 2012, 15:05
@G. Caruana. If the water & electricity bills are decreased, do you know what would be the ripple effect? More money in the workers' pockets, products depending on energy will have their prices decreased and much more! Even the local industry can employ more workers, because of the decrease of pressure on them because of the tariffs.
S. Vella
Sep 23rd 2012, 17:10
@Pat Hobson
Citizens should pay what they consume. The current situation where some households are already heavily subsidised while running multiple air conditioners is untenable.
G Caruana
Sep 23rd 2012, 17:40
well I won't need to be careful anymore with consumption I'll leave my lights on as JM will subsidize my waste, then I can use more resources till he puts up the price again.
Joe Tabone
Sep 23rd 2012, 11:08
Another classic example of politics of populisim gone wrong by LABOUR.
Labour won't work!
Joe Scerri
Sep 23rd 2012, 10:35
Maybe PL are finally seeing some light.
B. Cachia
Sep 23rd 2012, 10:21
The way for everyone to have a 'living wage' is for productivity to grow. I think Labour are recognising that, which is no mean feat for a party coming from a social democratic tradition. I hope they go a bit further and recognise that our income tax rates are no longer competitive and that the present government has made a serious mistake in breaking its word and leaving them at their current high levels. Our partners in Eastern Europe and the Baltics aren't making the same mistake and their economies are surging forward. Our economy, by contrast, has been stagnant for about a decade.
Please choose the reason of your report below: