Jobs of Maltese company employees with Libya-based roles could be at risk if the crisis is drawn out, the Malta Employers Association has confirmed with The Times Business.
MEA director-general Joe Farrugia said the MEA was among the stakeholders calling for an urgent meeting of the Malta Council for Social and Economic Development. Discussions would focus on short-term mitigating measures to alleviate the hardships of firms and their staff.
Local businesses could sustain employees previously engaged in Libya to varying degrees, depending on the type of organisation and the duration of the crisis, Mr Farrugia pointed out.
“Some businesses can transfer employees from the Libyan operation to the domestic outfit,” Mr Farrugia added. “However, in most cases this will not be possible and these employees may well face redundancies. This will also depend on the kind of contractual agreements that were signed between the companies and the employee. There may be cases where the employer may suffer the full cost of the contract, even though the work is suspended.”
Mr Farrugia admitted the manner in which the situation in Libya flared was unexpected and many companies were caught unawares. They were now anxiously trying to gauge the potential duration of the situation while employees were understandably concerned about their livelihood.
Sources confirmed that some employees who have returned to Malta have been told to stay at home until further notice.
However, Mr Farrugia is optimistic about the future prospects in Libya.
“Many multinational companies are already positioned on the starting line in the race to grab the opportunities which will arise once the dust settles,” he stressed. “Libya is a vast country with a low population and practically unlimited economic potential which has been largely untapped due to an inefficient dictatorial regime. Although the short term prospects for Maltese companies are bleak, we should, as a country, start thinking of a strategy to hit the ground running once the crisis is over.”
He stressed the business community with interests in Libya had to look beyond the immediate issues and be proactive in designing a national strategy to benefit from the opportunities which will arise after the crisis.
Mr Farrugia said democracy in Libya – if it happened – could offer a tremendous boost to Malta’s economy.
“Malta can establish itself as a bridge between the European Union and the US on the one hand, and young Arab democracies on the other. The extensive international media exposure has already set the perception that Malta is a physical gateway. If the right conditions prevail, we could become a conceptual bridge as well. To achieve this, we need dialogue, vision and political consensus,” Mr Farrugia said.
Around 240 Maltese have been evacuated from Libya since the crisis began. According to official figures, 300 Maltese work in Libya.