Business and industry are feeling the pinch of a collection of factors working against their interests.
The first is the high cost of energy that is making their operations increasingly uncompetitive. There is then the flak they have received from trade unions over a set of proposals by employers that include measures aimed at checking sick leave abuse. Most of the criticism was unjustified. Next came the power cut that must have cost business and industry substantial amounts in lost production or, in the case of retail outlets, sales to consumers.
The straw that broke the camel’s back, as it were, was the announcement of a rise in cargo handling tariffs announced by the operators of the Valletta Gateway terminals and which is planned to come into effect on Monday.
Each of these factors add costs at a time when the two sectors can least afford them, a matter that ought to be of direct concern to a government that is so quick to take credit for any improvement made in any of the key economic indicators.
Over the years trade unions pitted workers against employers, a trait that has not died out completely yet.
There may very well be employers who exploit their workforce just as there are workers who abuse their sick leave entitlement. However, it is shortsighted and, also, a self-defeating exercise to make sweeping generalisations.
The controversy over employers’ proposals ought to be refocused on matters that should be tackled responsibly by the two sides in the interests of industry and those it employs.
As for the energy costs, a request to the government to make the tariff cut now rather than next year has been flatly turned down. The government has also turned down a call made by business and industry for compensation for financial damage caused by the recent nationwide power cut.
Their argument is that businesses should be the first to be compensated for the losses incurred. The hardest-hit households are to get €25 compensation; it will be taken off their energy bill.
The president of the Chamber of Small and Medium Enterprises – GRTU, Paul Abela, said members have suffered millions in losses. The employers went a step further, requesting compensation for “wages due to the power cut”. On the other hand, hoteliers appear to have made a case for reliability in power supply rather than for financial tokens.
Reliability in power supply is obviously what the whole country insists on having but business and industry are also insisting on compensation (not financial tokens) too.
Adding greater substance to their plight over ever-increasing operating costs and the serious threat this is now posing to their competitiveness is the planned rise in cargo handling charges. These are seen as exorbitant. Contrary to what some may have believed, Transport Malta did not approve the rise. In fact, it has objected to Valletta Gateway Terminal’s “unilateral decision”.
Transport Malta said it had always maintained its stand against any increase in charges, which, it added, it was still maintaining notwithstanding the publication of the public notice about the rise. It insists that any rise should be accompanied by a business case and study analysing the impact. This makes a great deal of sense but will the company now be allowed to go ahead with raising the charges?
Business and industry badly need a breather. If Malta becomes less competitive, it is not just the owners of manufacturing firms and businesses that will suffer but employees too.