Trade union membership continued to increase last year, with 2,176 more people joining the 29 unions reporting to the Registrar of Trade Unions – but membership of employers’ associations fell.

Over the past 10 years, trade union membership rose by 16 per cent while that of employers’ associations also rose – but by six per cent.

Four new unions were registered in the July 1, 2015 to June 30, 2016, period: the Malta Association for the Counselling Profession, the Malta Police Association, the Association of Airline Operators Controllers and the Police Officers Union.

Why has the number of employers’ associations been dropping? Joe Farrugia, the head of the Malta Employers’ Association said there could have been dormant organisations which were no longer on the register, or mergers such as that of the Chamber of Commerce and the Federation of Industry in 2009.

He found the decline anomalous as the MEA’s membership has been increasing steadily year on year: by more than 50 per cent over the past eight years in terms of number of companies that are members of MEA.

“In terms of coverage, our members today account for more than 35 per cent of all jobs in Malta and Gozo,” he said.

Is there still a role for employers’ associations given the evolution of industrial relations away from the militant “us and them” approach of the past to a more collaborative negotiation?

The Chamber’s role is wider than merely industrial relations. Its principal mission is to actively represent companies from all economic sectors

“The increase in MEA membership is clear proof in itself that employers’ associations are needed more than ever. Social dialogue is becoming more complex and important, both at national level and especially at enterprise level on industrial relations matters – both in a unionised and non-unionised environment. Employers do feel the need for more professional support to help them practise their rights and simultaneously fulfil their obligations as employers. As long as employer associations respond to these needs they will remain relevant to the business community.”

The Chamber is recognised by the Commercial Code of Malta and is not obliged to register with the Registrar of Trade Unions. Having said that, the Chamber director general Kevin Borg confirmed that its membership count is also following a general upward trend, with a net increase of around six per cent in 2016.

Companies that are members of the Chamber now represent around 70 per cent of total employment in the private sector (excluding hotels, restaurants, retail, construction, parastatal and entities owned by the Church). Its members also represent in excess of 87 per cent of all Maltese exports.

“The Chamber’s role is wider than merely industrial relations. Its principal mission is to actively represent companies from all economic sectors and ensure that entrepreneurs enjoy the best competitive environment and regulatory conditions possible for the conduct of business. Through its active internal structures with dedicated sector and policy-specific committees, the Chamber enables effective communication across all stakeholders as well as ensuring a series of value-added services to business not least in the field of internationalisation.”