Speaking at the general assembly of the European People’s Party Workers Group held in Malta, Laszlo Andor, European Commissioner for Employment, Social Affairs and Inclusion, stated that “member states need to enhance labour market participation, raise the retirement age and decrease early retirement schemes” to sustain growth in the labour market.

In The Times (September 17) prominence was given to raising the retirement age.

Raising the retirement age means that persons have to stay longer in employment, contribute more to the state through tax and social security contributions and finally receive less benefits through pension entitlement. All these factors contribute a lot towards the sustainability of the pension system.

Early retirement schemes must be avoided as much as possible and should be considered as a last resort. In extreme cases, where these schemes have to be put in operation, then the social partners should work together to provide proper training to employees in order to be reintegrated in the labour market as early as possible.

However, in the current economic situation it is of paramount importance to focus more on the possibilities to enhance labour market participation rather than on the two topics indicated above.

According to statistics, Malta ranks at the bottom of the EU list in terms of labour participation and therefore this problem has to be tackled without further delay.

It has to be admitted that certain measures have already been put in place.

In spite of all this effort Malta is still lagging behind in terms of labour participation. In the circumstances there is a need to improve in this particular area and while we should consolidate what has been attained so far it is necessary to move forward and achieve better results.

The following suggestions can be considered to increase labour participation to better our placing in the EU list.

In view of the current demographic change and low birth rates there should be a change in the mentality of employers about the employment of women and older workers.

The government should amend existing legislation and abolish mandatory retirement.

Learning and training should be available on a regular basis at the workplace so that workers continue to learn and improve their skills.

Employers in the private sector should be encouraged to develop more family-friendly measures aimed at the reconciliation of family and work. Flexitime and teleworking on the lines provided by the government should be considered.

More affordable, accessible and adequate quality childcare centres are crucial to encourage women to take up employment.

The regularisation of legal immigrants in our labour market is an important step to increase our productivity and our employment rate.

The concluding remarks are about some reasons why workers, especially women, are keeping away from joining the workforce. It has to be pointed out that irregularities and abuses are taking place by certain employers not only in the conditions of work but also in the insurability of workers as regards the provisions laid down in the social security act.

It is a fact that wages/salaries paid are low and sometimes below the minimum wage.

There is also an increase in the trend where certain employers are engaging workers on condition that although they are “employed” they are requested to pay a social security contribution pertaining to a “self-occupied” person. In terms of law, they should pay a contribution as an employed person.

This irregularity leads to the fact that the victims of these abuses are not entitled to bonuses, vacation and sick leave and paid public holidays. As for social security contributions they have to pay 15 per cent of the net income declared to the Commissioner of Inland Revenue instead of the 10 per cent of the wage/salary earned. On retirement their pension rate may be also affected.

On the other hand, employers who carry out these malpractices are increasing their profits by avoiding payments for periods of vacation leave, public holidays, bonuses as well as the 10 per cent share due as social security contribution for each employed person.

Urgent action to control and if possible stop these irregularities/abuses will encourage more workers to join the workforce.