Employers agree with the Prime Minister when he says the cost-of-living-adjustment mechanism should not be tampered with.
The Malta Employers’ Association yesterday welcomed Joseph Muscat’s declaration that he was going to respect the mechanism that established a weekly wage increase of 58c for next year.
There has been widespread discontent at the small increase, which comes on the back of a year that has seen inflation at record lows. The COLA mechanism establishes compensation based on the inflation of the previous year.
Dr Muscat has acknowledged that 58c is not enough but insisted that the government would not alter the mechanism, which enjoys the consensus of both unions and employers.
He said the Budget would target vulnerable groups through a top-up without impacting the mechanism.
The MEA said it had no objection to this.