There are at least three ways of looking at the economy. The first is to look at it solely as a tool for companies to make profits quickly. The second is to look at it as a way to ensure the majority have their pockets lined with money in the short term. While the third is to look at it as a tool which would help all, including the most vulnerable in society, to live a decent life and to ensure a dignified life for all in the long term.
The first is a temptation for the rich; the second is a temptation for politicians while the third is the only way which would lead to real social justice. In this short article I intend to discuss the phenomenon of the working poor in Malta from the point of view of justice and a social conscience.
The working poor are those who are employed and whose disposable income puts them at risk of poverty. The latest figures for in-work poverty in Malta speak of 9,269 persons or six per cent of the population. Behind these statistics are men, women and children who are suffering and whose dignity is at stake.
The more vulnerable the position of the workers the less likely that they know their rights
Pope Francis’s words are food for thought: “A society that ‘does not pay a just wage’, that ‘does not give work’ to people and that ‘only looks to its balance books, that only seeks profit’ is unjust and goes against God.”
Various factors contribute to in-work poverty. These include low pay, poor skills and precarious work.
When calculating how high the minimum wage should be in light of a social conscience, a balance must be found between the individuals, their needs and the social dimension of work. Catholic Social Teaching puts forward four criteria for consideration.
First, wages should be sufficient for workers and their family to live a dignified life. Secondly, the condition of the firms needs to be taken into consideration.
Thirdly, the economic situation of the national and international community and the common good needs to be taken into consideration.
Lastly, on the one hand one must make sure that the minimum wage is not too low and so cause poverty and on the other hand the wage must not be too high since this would cause unemployment.
In today’s world having low skills is a recipe for poverty – not only of the present generation. We must ask: Why is it that a sizable percentage of students leave school without basic skills? Clearly this is a complex issue.
Among different contributing factors to this state of affairs I would list: poverty itself; an exaggerated competitive mentality which still exists in society and which ties children’s worth with success in exams; the mentality of some who have become dependent on social benefits and are demotivated to develop their skills and to find a job; the lack of dialogue between the schools and the families of their students, and the lack of adequate support services such as social workers and psychologists in schools.
Subcontracting is one of the common practices leading to precarious work.
This leads to lower wages, longer working hours and lower pay per hour; no allowances; no leave or sick leave; no bonuses and other similar practices. Some of these practices may be legal and others illegal. Stricter laws and law enforcement to curb such abuses are needed.
Another factor which leads to precarious work is the vulnerability of workers especially construction workers, cleaners and workers in the tourism industry.
Exploitation of workers takes place whether they are Maltese or foreign. The more vulnerable the position of the workers the less likely they know their rights and thus the less likely that they stand up for their rights.
Without having a social conscience at the workplace the GDP of a country could possibly grow in the short term. However, in the long term, the gap between the rich and poor would surely increase and the whole of that society suffers.
Fr Edgar Busuttil is a member of the Jesuit Centre for Faith and Justice.