GRTU director general Vince Farrugia: “Precarious working conditions should not have even reached the MCESD.” Photo: Jason BorgA clause banning subcontracting in public tenders was replaced with conditions which, according to the organisation representing owner-managed enterprises, still amounts to extra restrictions “persecuting” small businesses.
The new clause requires those who tender for work to provide full details of their subcontractors as well as theirs with their bid.
A circular on tenders had banned subcontracting altogether but a spokesman for the Ministry for Social Dialogue said the requirements were changed following a decision by the Malta Council for Economic and Social Development.
Vince Farrugia, director general of the Chamber of Small and Medium Enterprises – GRTU, had expressed outrage at the ban describing it as an “anti-SME” clause.
However, the ministry spokesman said Mr Farrugia had not been informed of the latest changes because he was not present at the MCESD meeting on precarious employment where the matter was discussed and changes made.
This sector is already strangled by too much red tape
Contacted yesterday, Mr Farrugia confirmed that neither he nor any GRTU official was present at the MCESD meetings on precarious employment because it had decided to boycott “the orchestrated attack on small businesses”.
He said the campaign on precarious working conditions was all orchestrated and had begun with personal attacks on him, particularly by the General Workers’ Union, which claimed he had described workers as rats.
The issue eventually ended up in court with libel proceedings being filed by GWU general secretary, Tony Zarb, after Mr Farrugia claimed that he (Mr Zarb) had manipulated the MCESD minutes. The case is still pending.
“The issue (of precarious work) got to the MCESD as a fait accompli. We refused to participate in anything that undermines SMEs and the self-employed.
“Precarious working conditions should not have even reached the MCESD but should have instead been discussed at the Employment Relations Board, which had addressed this issue in recent years,” Mr Farrugia said.
He said that even the latest version of the circular on tenders amounted to extra restrictions on SMEs and the self-employed.
“SMEs and the self-employed are being persecuted by these new restrictions. It just doesn’t make sense. We need the Government to wake up. It spent a whole electoral campaign talking about businesses then introduces such restrictions,” he said.
“Imposing more red tape on contractors with regard to subcontracting and making life harder for small enterprises to subcontract, when the trend in the rest of the EU is to further facilitate the access of public procurement, smacks of short-sightedness, wrong facts and prejudice against small businesses.
“This is an imposed agenda in which we did not want to partake. Micro and small enterprises represent 98 per cent of all enterprises. This sector is already strangled by too much red tape. This Government was elected on a platform to cut red tape not introduce more,” Mr Farrugia said.