UHM Voice of the Workers criticised the government for not publishing findings of the 2014 Household Budgetary Survey (HBS), which is key for an informed discussion to take place on minimum wage and the state of poverty in Malta.

An HBS refers to a national study which focuses on household consumption and expenditure, indentifying patterns and laying groundwork to implement sound economic policy.

UHM CEO Josef Vella remarked that even if the government had to publish the report today, it would still be too late because we are now in 2016. He called on the government to make the study ongoing, rather than have it take place every five years.

His comments come during a press conference which expressed the Union’s position on minimum wage recommendations on the poverty report penned by Caritas, where he said that even if the minimum wage had to be increased, this is only a short term measure. He added that such a move would leave families at risk of poverty, or in poverty, in the same position three-four years down the line.

With regard to the minimum wage discussion, Mr Vella said “it is not about agreeing or disagreeing, it’s about implementing measures which are effective. Think long-term.”

The last survey published, which was in 2008, found that households with income between €8,000 and €10,000 spent on average €11,109.

Professor Philip Von Brockdorff stressed specific findings from the Caritas report, such as the while the country’s output/productivity per hour has increased, the output per worker has actually decreased.

He attributed this to an injection of women in the workplace, who he said tend to work less hours than their male counterpart.

Mr Vella said the UHM would await the results from the last household budgetary survey before deciding what level the minimum wage should be set at, or whether a living wage should be set.

With the increase of a minimum wage, certain sectors such as the construction industry might seem less competitive, as it was noted how the labour costs in Malta are on the rise. Malta’s current minimum wage, compared with other EU Member States is towards the middle, meaning that an increase might attract migrant workers from EU countries with a lower minimum wage.

It was stressed however that UHM cannot communicate a clear position without timely statistics to back up statements being made.

Mr Vella noted how the Cost of Living Adjustment (COLA) mechanism is ineffective, because it is “clearly” not addressing the discrepancies found in the year-year cost of living increase.

Professor Von Brockdorff spoke of Caritas’ recommendation for a minimum wage commissioner who would closely observe movements and any necessary action which would need to be taken.