Essentially, precarious work is a non-standard contract of employment that guarantees little in the way of continuous employment and the expected benefits of full time engagement. Benefits such as pensions, standard working conditions and expected medical and social cover are more often sidestepped if not completely denied.
Unfortunately, these arrangements give rise not only to underpaid conditions but create a sense of insecurity in the employed, which in turn foster a sense of frustration and a lack of self-esteem and esprit de corps for the firms that employ them. The pressures of local and international competition, economic realities on the ground and the need of ever increasing flexibility have made precarious work a reality in today’s labour market. This situation that has plagued western economies for quite some time is now also becoming a Maltese reality.
The phenomenon of precarious work in Malta has been highlighted for quite some time by trade unions and other non-governmental organisations. Indeed, even this Administration recognises this new reality. In the penultimate PN General Council, Lawrence Gonzi recognised this controversial situation and has pledged to keep precarious work at the top of the political agenda.
It is very hard to categorise the standard model that neatly describes precarious work. At the heart of the model is a situation where an employee is considered essentially expendable according to the needs and requirements of a firm at the time. Of course there are genuine cases that constrain firms to hire and fire according to the demand they face especially when contracted on definite jobs with limited time horizons. The condition of precarious work becomes intolerable and indeed illegal when it is clear employers are exploiting workers, bypassing certain rights and conditions the employee is entitled to clearly for reasons of cost cutting.
As in all arguments, there are two distinct opposing views to the reality of precarious work. On the one hand the Employers Association (MEA) insists that precarious working conditions are a limited and restricted practice and believe that trade unions are making a meal of a very limited practice. Clearly, the association is unwilling to face further regulation that would hinder its members’ flexibility when it comes to hiring and firing as well as dictating work conditions for their employees.
On the other hand, trade unions such as the General Workers Union and Unjoni Haddiema Maqghudin sing from a completely different hymn sheet. While the GWU has made its ‘disgust’ at the situation clear, the latter union has described the situation of precarious work practices as a rising and tangible reality that is affecting the labour market in our country. The unions insist that it is primarily fear that restricts workers from voicing their grievances − fear that speaking out would result in immediate expulsion from their jobs (often their only tangible lifeline).
Reality paints a much more complicated picture. Whether we like it or not, flexibility has become a necessity in various sectors of the labour market. Without this flexibility, competitivity would be seriously undermined. The reasons could be manifold especially in terms of seasonality, term of contract or a sudden surge in demand that is not expected to last. Clearly, these situations can only be remedied through the employment of individuals on a temporary basis. The situation becomes intolerable when employers use this strategy as a form of cost saving in a clear attempt to avoid their onerous obligations to their workers. A blatant form of this exploitation has been identified in certain sectors where workers are forced to register as self-employed, hence renouncing practically most basic benefits expected for a full time employee. In other cases, pay cheques are reduced for a series of esoteric reasons that clearly confirm that the minimum wage is not being respected. These cases are blatantly illegal and unacceptable.
In this light, the government has made a number of legal changes and reforms that should help alleviate the realities of precarious work. Firstly, it has published a legal notice that clarifies the conditions and description of what constitutes a self employed individual. This should serve as a basic protection against any abuse in this sense hence making it more difficult for employers to pass off employees as self-employed staff. In this legislature no less than 35 legal notices were aimed at improving working conditions for all Maltese employees.
Other measures include the lowering of income tax rates for a whole class of workers. Throughout these last four years 55,000 parents have benefited from these tax cuts. Furthermore in the same period the average salary has increased by no less than 2,000 euros.
Even where enforcement is concerned, the government has made continuous improvements. Between 2008 and 2011, some 5,486 inspections were carried out in workplaces that employed over 115,000 workers. 3,136 contraventions were issued to regularise illegalities or irregularities, many times having to do with unpaid overtime, untimely payments of salaries and bonuses and the forfeit of basic leave days. In 36 of these cases, court action was instituted.
Clearly, no one is under any false impression that precarious work will ever be stamped out. What is sorely needed is a more statistical data that would clarify the scale of the real problem. There is a feeling that precarious work is offered more to women than men especially in particular services. This after all is an international phenomenon witnessed across Europe and the US. This ‘feminisation’ of work is often explained by the needs of women to be more flexible and hence accept any conditions on offer.
It would be foolish not to embrace the conditions of what we could term a ‘new economy’. Despite its advantages and disadvantages, it remains a government’s obligation to foster a climate of fairness in the labour market. Anything less would lead to a slippery spiral of worker exploitation that is clearly illegal and unacceptable.
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