Seventy-six per cent of respondents in a survey conducted by the Chamber for Small- and Medium-Sized Enterprises - GRTU among 40 major building and civil engineering companies say they intend to reduce their number of full-time employees.
The gloomy international economic climate seems to have had an impact on the local construction industry, with 85 per cent of those questioned saying that they do not feel comfortable with their current level of orders.
Those who participated in the survey were allowed to choose more than one option in response to a question on their employment strategies. Seventy per cent said they would reduce sub-contractors while 60 per cent said they would dismiss some of their part-time employees.
A significant number of those questioned, 22 per cent and 14 per cent, said they intended to replace local workers with migrant workers and employ additional migrant workers. Ten per cent of respondents said they would utilise more part-time workers. A quarter of those interviewed said their employment strategy would stay the same while only five per cent of respondents said they would increase their number of full-time employees. Ten per cent said they would increase the use of sub-contractors.
The largest single problem identified by the respondents was the slowing down of the economy with 85 per cent highlighting this. Again, participants were allowed to choose more than one option and 80 per cent identified the slowing flow of orders and delays by Mepa in approving projects as problems they were facing.
Seventy-five per cent of the respondents cited too much bureaucracy as a problem while 71 per cent and 70 per cent respectively mentioned a falling demand for housing and delayed payments. An increase in costs was highlighted by 65 per cent of participants while 60 per cent mentioned the negative impact of certain government decisions. Adverse banking conditions was a problem for 55 per cent of respondents while 10 per cent mentioned a shortage of skilled labour.
Eighty-seven per cent said they did not consider public policy to be supportive of the construction industry.
According to the latest Economic Survey published by the Ministry of Finance the construction industry's total share of the country's Gross Value Added (GVA) is four per cent and it is responsible for 25 per cent of employment in direct production.
GRTU director-general Vince Farrugia told The Times Business that the picture emerging from the construction industry survey shows that this important sector of the Maltese economy is slowly grinding to a halt at a time when export manufacturing industry, the tourist sector and the services sector will surely suffer downsizing as a result of world adverse economic situations.
"The way ahead is more capital expenditure. Expenditure that will utilise the labour and resources that are becoming rapidly available as a result of the economic downsizing to create those infrastructural and capital investments that will help us compete better once the European economies return to an acceptable level of GDP growth," he said.
Mr Farrugia asked why the Maltese authorities are not taking the message from the EU to put aside the Maastricht criteria for at least two years in order to concentrate on improving economic performance. "The time to act is now. Corrective measures must be taken. February and March will turn out to be very dismal if the government does not act now," he said.
The gloomy international economic climate seems to have had an impact on the local construction industry, with 85 per cent of those questioned saying that they do not feel comfortable with their current level of orders.
Those who participated in the survey were allowed to choose more than one option in response to a question on their employment strategies. Seventy per cent said they would reduce sub-contractors while 60 per cent said they would dismiss some of their part-time employees.
A significant number of those questioned, 22 per cent and 14 per cent, said they intended to replace local workers with migrant workers and employ additional migrant workers. Ten per cent of respondents said they would utilise more part-time workers. A quarter of those interviewed said their employment strategy would stay the same while only five per cent of respondents said they would increase their number of full-time employees. Ten per cent said they would increase the use of sub-contractors.
The largest single problem identified by the respondents was the slowing down of the economy with 85 per cent highlighting this. Again, participants were allowed to choose more than one option and 80 per cent identified the slowing flow of orders and delays by Mepa in approving projects as problems they were facing.
Seventy-five per cent of the respondents cited too much bureaucracy as a problem while 71 per cent and 70 per cent respectively mentioned a falling demand for housing and delayed payments. An increase in costs was highlighted by 65 per cent of participants while 60 per cent mentioned the negative impact of certain government decisions. Adverse banking conditions was a problem for 55 per cent of respondents while 10 per cent mentioned a shortage of skilled labour.
Eighty-seven per cent said they did not consider public policy to be supportive of the construction industry.
According to the latest Economic Survey published by the Ministry of Finance the construction industry's total share of the country's Gross Value Added (GVA) is four per cent and it is responsible for 25 per cent of employment in direct production.
GRTU director-general Vince Farrugia told The Times Business that the picture emerging from the construction industry survey shows that this important sector of the Maltese economy is slowly grinding to a halt at a time when export manufacturing industry, the tourist sector and the services sector will surely suffer downsizing as a result of world adverse economic situations.
"The way ahead is more capital expenditure. Expenditure that will utilise the labour and resources that are becoming rapidly available as a result of the economic downsizing to create those infrastructural and capital investments that will help us compete better once the European economies return to an acceptable level of GDP growth," he said.
Mr Farrugia asked why the Maltese authorities are not taking the message from the EU to put aside the Maastricht criteria for at least two years in order to concentrate on improving economic performance. "The time to act is now. Corrective measures must be taken. February and March will turn out to be very dismal if the government does not act now," he said.