I am an early riser. My early home duties vary at the whims of the lady of the house but making tea and searching for the television remote control have long been set as my duties. Once tea is ready I position myself well in my favourite armchair and prepare to speed around the world. At the press of a button I am in London, New York,the heart of Europe, the Middle East, Africa and many other countries around the world. This very much depends from where the latest breaking news is coming.

Let me digress for a second.  In the classic adventure “Around the World in 80 days” the English wealthy Phileas Fogg accepted a wager for £20,000 from a fellow club member, if he manages to travel in 80 days around the world.  Well,in 1873 the television remote control as we have it today was not as yet remotely designed. The television setwas available in limited numbers in the beginning of the 1920’s. Today in less than 80 seconds one can follow what goes around the world in real time.

In any case going back to my subject zapping from one international news agency to another in search for the latest world-wide news updatesis part of my daily activities.It is no secret, tiny Malta may experience adverse economic outcomes because our trading partners may be suffering from economic downturns or vice-versa. Reliable news in this regard comes in handy.

Of course, I followthe local early newsalso.Last Wednesday TVAM viewers werepresented with a challenging but objective viewpoint“Nobody owns us a living.We have to generate our own capacity to earn a living”were the parting commentsof the Central Bank of Malta Governor Prof Josef Bonnici. Food for thought! The day before Governor Prof Bonnici, flanked by his Deputies presented the Central Bank’s Annual Report.

The report made an analysis of the economic and financial developments in Malta and abroad.In his statement Governor Bonnici notes that in order to address economic imbalances and to implement structural reforms, various euro area countries have seen lower nominal wages. Unit labour costs in these countries have decelerated and have now moved closer to those in the better performing countries.

The improving competitiveness of stressed economies may pose a challenge for the Maltese economy.The Governor stressed that it is essential for higher wages to be sustained by gains in productivity. Malta needs to remain flexible in carving out new niche markets. The quality of human capital needs to meet the changing requirements of domestic and export markets, implying that the education system has to provide the required skills. The authorities also need to extend programmes that attract foreign investment to Malta and improve the business environment.

During 2013, employment in Malta was on average 3.1% higher than a year earlier. However, since the labour supply rose at a faster pace, the unemployment rate increased marginally. In seasonally-adjusted terms, the unemployment rate averaged 6.5% in 2013, slightly higher than that recorded in 2012.

The soft spoken Governor did not mince words.  Whether his sound counsel would be taken on-board by the three social partners is a completely different argument. 

In contrast with the Governor’s statements during the same week the Minister for Energy and Health announced that around 40 workers will each receive a daily wage increase of €16.00.Let’s face it a €80.00 weekly wage increase is not bad at all.  He even promisedthat within the next six months these workers will be allowed to apply to fill vacancies at ARMS Ltd. Undeniably this was good newsfor the workers.

Rightly sothousands ofworkers in similar situations working in different Government Departments, Authorities, Agencies and Public Entities would be waiting for their respective Minister to show at their place of work and make similar announcement.What's sauce for the goose is sauce for the gander unless the Hillies and Billies approach is adopted in which case unions wouldstart getting hot under the collar.

However, in the light of these two conflicting statements questions need to be answered.Is the announced wage increase consonant with the statements of the Governor?  Would all workers in similar situations, as those at ARMS Ltd in different grades, securities, janitors, carers, clerical staff and others working in Government Departments, Public Entities and Authorities receive a similar wage increase? Would all these workers, thousands in all,end-up on the pay roll ofthe Public Sector? 

Employmentfigures clearly show that the new employment strategyis directing workers towards public coffers pay roll.Notwithstanding this signal I continue to believe that well experienced people working in the Ministry of Finance hold tight to basic economic principles and put brakes on this part of the new employment strategy before this balloon into a too large public sector. The effects of which are known to all.

If anything Government should strive to create sustainable employment opportunities with attractive conditions of work and good salary packages in the private sector for workers. The creation of the appropriate business environment for local and foreign entrepreneurs is essential in achieving national economic success.

I take this opportunity to wish the Directors, staff, all readers and their loved ones a Happy Easter.

 

GejtuVella

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