The cost-of-living allowance should be limited to workers who earn the minimum wage, according to employers.
Employers expect a commitment from parties to reduce debt by two per cent per year for the coming five years
Moreover, the Malta Employers Association called for a revamp of the way this allowance is calculated, arguing it should be pegged to productivity rather than inflation.
In a document listing its proposals for political parties to consider in the run-up to the general election, the association went beyond addressing issues that affected just its 450 members.
It also called for a revamp of the parliamentary system, so that future governments could consider introducing a number of seats for technocrats in Parliament and having them in ministerial positions.
Giving an overview of the document’s proposals, director general Joe Farrugia said the MEA did not favour raising the minimum wage since this “would not address” the poverty problem. Instead it would have a ripple effect on salaries across all scales, potentially undermining competitiveness and jobs.
He stressed that all political parties had “very little room to manoeuvre” in their electoral promises, adding that a priority of any government should be to reduce the national debt.
The employers expected a commitment from parties to reduce debt by two per cent per year for the coming five years.
On the social policy sector, Mr Farrugia said while the association agreed that whoever needed help should receive it, the Government must work on the make-work-pay concept. This should address the marginal difference between working and relying on social benefits, which he said was often being used as an excuse to refuse a job.
On education, Mr Farrugia said it was good to see the Government investing a substantial part of its budget on this sector.
However, this had to be accompanied by specific targets, with added focus on school dropouts, for example.
The employers also suggested that stipends be tailored to different courses according to national needs.
Referring to the recently signed civil service collective agreement, Mr Farrugia said the MEA was proposing a cut-off date within a legislature for any government to negotiate or conclude collective agreements.
The association believed a deadline of six months before the end of the legislature should be set to avoid electoral pressures on a government that could potentially be “in a position of weakness”.
He said employment in the public sector had to be “curtailed” for it to be sustainable and the Government should learn how to “work with less people but with improved efficiency”. Air Malta was a living example of how this could happen, he said.
Turning to pensions, Mr Farrugia said while this was not a good time to introduce mandatory second-pillar pensions, the Government should continue strengthening the current system, while introducing and incentivising voluntary investment in third-pillar pension schemes.
He said the MEA was also calling for the Malta Council for Economic and Social Development to be radically reformed, particularly the need for more frequent meetings which ran in parallel with parliamentary activity.