Minimum wage increase essential for social development - AD

An increase in the minimum wage is essential for social development and a healthy economy, AD chairman Michael Briguglio said.

Addressing a news conference, he said that the economics of cheap labour were regressive and outdated.

“It is appalling that Labour has betrayed workers and joined the bandwagon of those who pessimistically predict that only low wages can enhance competitiveness. They fail to have confidence in workers’ contribution to the economy, both in terms of production and consumption.

 “Competitiveness is more likely to be influenced by a myriad of economic, political, social and ecological factors at national, regional and global levels,” he said.

Dr Briguglio said that an increase in the minimum wage would help improve the quality of life of the workers and increase spending power.  Such an increase would also encourage more people to enter the formal labour market, making work pay, and enhancing productivity. This would curb inflationary pressures. 

 “Well-paid workers, optimal use of natural resources such as sun and wind, and embracing technological change such as the IT revolution is what Malta’s economic vision should be all about, rather than cheap-labour economics of a bygone age.”

Angele Deguara, social policy spokeswoman said that a minimum wage increase was essential to avoid increasing poverty.

AD, she said, was proposing a realistic assessment of the cost of living adjustment so that the yearly compensation would truly reflect the rise in inflation.