Raising the minimum wage could have a spiral effect on wages across the board with serious consequences on competitiveness, the employers have warned.
They said the country's efforts should be targeted specifically at eradicating poverty while safeguarding competitiveness and long-term economic growth.
The concern was raised through the private sector organisations represented on the Malta Council for Economic and Social Development - the Malta Employers Assocation, the Malta Chamber and the Chamber for Small Enterprise, the GRTU.
The issue of employers is not in fact with raising the minimum wage, but rather on the effect this will trigger on wages across the board, they said.
The statement came after a new coalition of social justice organisations said the minimum wage should be raised by more than 10 per cent over three years to allow low income families to meet their basic needs.
Employer bodies appeal to all stakeholders to refrain from political games that risk the livelihood of employees and the country’s long-term economic and social development
A professional report commissioned by the MCESD recently presented to social partners sheds doubt as to whether raising the minimum wage is the ideal measure to solve. Instead, the report suggests it would be more meaningful to use more direct and targeted action, the employers said.
Besides, Malta has an extremely positive track record of wage-bargaining at enterprise level, which is a rarity in the context of the EU. Through this system, wages are determined fairly on the basis of social considerations but also on the basis of productive and competitive constraints. This established and recognised structure explains why only a small percentage of the workforce in Malta earns a minimum wage.
Private business is the motor of our economy and it is the private sector which finances the country’s social security system.
"Lip service by both the political parties on raising the minimum wage without consultation with employer representatives and pre-empting the discussion process seriously prejudices the situation and does not bode well for discussions.
"Such tactics are short-sighted, irresponsible and unacceptable. Employer bodies appeal to all stakeholders to refrain from political games that risk the livelihood of employees and the country’s long-term economic and social development."
"In the current economic scenario, the employer bodies believe it is unacceptable to find certain cohorts of the population that are still beset by poverty and deprivation. They believe that it is the joint responsibly of government, politicians, social partners, employers, employees and civil society to ensure dignity for the entire population."