The Malta Chamber has expressed its surprise after the government imposed new conditions related to tender doocuments in an effort to combat precarious employment situations.

The Chamber said that the OPM circular published last week was unfortunate and ill-timed given that discussion within MCESD on the subject was still ongoing and various constituted bodies were discussing the matter internally and finalising their position papers.

While stating that it appreciated the sense of urgency and timely action, the Malta Chamber said that the OPM should have delayed this circular to allow social partners to conclude their ongoing discussions.

“By acting prematurely and laying down the new regulations in haste, government has clearly undermined the discussions that were and still are taking place at MCESD” said David G. Curmi, president of the Malta Chamber, who concluded that this may be perceived as another instance in which government acted in disregard of the collective opinion of the social partners represented at MCESD.

“From the information made available, the Malta Chamber fears that the revised regulations issued without consultation will create a number of negative effects on the private sector and on SMEs in particular.

“The conditions as published have eliminated the opportunity for certain SMEs to participate in the public tender process because it precludes them from acting as sub-contractors.,” Mr Curmi said.

Mr Curmi continued, “Sub-contracting, in itself, is not to be considered a mal-practice. Rather, it is a means for small and micro enterprises to cluster, consolidate, co-operate and expand their business.”

The Malta Chamber expressed concern that the amended conditions run contrary to its advice recently expressed in the press as well as during the relevant MCESD meeting when it said that any further regulation introduced in relation to precarious work should be directed solely at those sectors which are found to be susceptible to the practice and should not encompass the entire labour market.

The amendments also run counter to the declared spirit of the new administration in favour of SMEs’ better integration in the public procurement system and its declared stance against bureaucracy, Mr Curmi said.

Whilst reiterating its full opposition to any situation that leads to worker exploitation, the Malta Chamber called for an immediate revision of Circular 12 with a view to ascertain flexibility in the labour market and to allow for consolidation, specialisation and integration amongst local SMEs.