The government would not give in to pressure and raise the minimum wage, Finance Minister Edward Scicluna said yesterday.
The minimum wage stands at €718 a month, or €166 a week.
Speaking on a raft of economic issues during a business breakfast organised by The Malta Business Weekly, Prof. Scicluna said that despite increasing pressure to increase the minimum wage, particularly from Caritas and the trade unions, the government had no intention of doing so.
If the NSO data is right, I would expect to hear about layoffs on a daily basis
Prof. Scicluna said that in Malta only 3.6 per cent of the workforce was on the minimum wage and the government wanted to preserve competitiveness.
He said the minimum wage in Malta compared well with the EU average and the situation should not change.
He said that a report by the World Bank on pension reform had just been finalised and sent to the European Commission. Without delving into its contents, Prof. Scicluna said the situation over the long-term (2060) did not appear as bad as one had thought it would a few years ago. However, adjustments still had to be made and the government intended to have talks with all social partners in the coming weeks.
Prof. Scicluna again said that certain figures released by the National Statistics Office and Eurostat were giving a perverse picture. Referring particularly to data showing economic activity in the manufacturing and retail sectors slowing down, he said this did not tally with reality. Insisting that both sectors had increased employment over the past year, he said: “If the NSO data is right, I would expect to hear about layoffs on a daily basis.”
He pointed out he was not criticising NSO officials but the methodology used.
On public sector employment, Prof. Scicluna admitted that, over the past year, more than 2,000 workers had been recruited, quickly adding that more than 600 consisted of former Arriva employees who would return to the private sector once the new operator took over the running of public transport.
He noted that the island had to shoulder an extra burden due to prevailing circumstances.
“In Gozo, we have a teacher for every three students when in Europe the average is a teacher for every 10 to 15 students,” he said.