PN Leader Simon Busuttil yesterday said that, as a matter of principle, an investigation should be launched immediately into reports concerning Playmobil Malta’s cheap payments to subcontractors, which is leading to the precarious employment of Maltese workers.

The Malta Independent this week revealed how the German company engages subcontractors who then employ Maltese people to assemble toys, paying them between €1.90 and €2.00 per hour to work from home, in a clear violation of employment laws by subjecting individuals to precarious conditions of work.

Describing the practice as “cheap labour”, Dr Busuttil said: “In our country we have laws and standards that need be respected, even regarding the pay of the worker.  We have a national minimum wage, and you cannot pay lower than that. Everyone has to take responsibility for their actions, if there are these reports, they need to be investigated.”

The PN Leader maintained that he could not comment in detail, as he was not privy to finer details of the allegations and could not ascertain the absolute validity of the claims.

“You mentioned a company that has a strong reputation and has done a lot of good work for the country. This has to be addressed immediately if it is true.”

The well informed and trusted sources also told this newspaper that Playmobil Malta issues invoices to the subcontractors according to the total units produced. This, the sources claim, is a method to disguise the true cost of the wage per hour should the authorities challenge this practice, something which did not happen as yet.

The Maltese company’s current CEO, Matthias Frauser  has refused to answer questions sent by The Malta Independent a week ago, with company’s receptionist informing the newsroom that “Playmobil Malta does not respond to the media,” despite previous assurances.

Contacted by the newsroom, Playmobil’s corporate offices in Germany did not confirm or deny the reports, but refrained from commenting further.