Individuals involved in Playmobil’s home-workers’  ‘cheap-labour’ scheme have been struck off the social benefits scheme, Arnold Cassola has alleged.

The former AD chairperson has also claimed that Playmobil has threatened to move its operations to Tunisia if the company is “not allowed to continue with these slave payment schemes.”

The Malta Independent had also been informed of the possible move through an anonymous letter sent to this newsroom.

Last May, this newsroom reported that 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, less than half the minimum wage, in a clear violation of employment laws by subjecting individuals to precarious conditions of work.

It was also found that the company requires subcontractors to adhere to strict production regulations. Documents indicate that in respect of one product, the sub-contractor will be paid €11.40 for every 1,000 pieces that are produced in three hours, or one piece every ten seconds, meaning that it is practically humanly impossible to produce more units per hour to reach the minimum wage rate.

The former AD leader had told Prime Minister Joseph Muscat specifically about the exploitative scheme on 22 May during the Leaders’ Debate held at the University.

“Instead of taking action against the powerful perpetrators of this scheme, the Maltese government led by Joseph Muscat takes action against the victims of the scheme,” Cassola decried on a social media post.

“Isthi, Joseph. As usual, issa drajnik (we have become used to it), you continue laying a red carpet for the rich and ignore the problems of the ones really in need.”

The newsroom also revealed last Sunday that the company is also employing inmates at Corradino Correctional Facility in a similar fashion, which is allegedly also being facilitated through a subcontractor based in Hal-Ghaxaq.

In reply to questions sent concerning CCF, a spokesperson from The Ministry for European Affairs and Equality said that while DIER is conducting an investigation on the subject, “one cannot rush to conclusions about the existence of precarious conditions in home work which is offered by the company to whoever freely opts to earn extra income. “

“The subsequent investigation [which as of September was still ongoing] was among subcontractors and home workers which naturally involves an exhaustive process.

“While the Department of Industrial & Employment Relations is investigating all matters on the subject, one cannot rush to conclusions about the existence of precarious conditions in home work which is offered by the company to whoever freely opts to earn extra income.

“Depending on the final outcome of investigations, the Department will consider whether to make proposals which clarify the position of this category of workers.”

CCF Director Mariella Camilleri has repeatedly ignored questions asking for the exact amounts being paid to each inmate, instead telling the newsroom that "discussions are ongoing and a report is to be presented to the Minister regarding the way forward."

However, in spite of being asked, Camilleri did not reveal what was being discussed, and what the report will concern.

Home Affairs Minister Michael Farrugia would also not divulge what the discussions and report were concerning.

The spokesperson was later sent questions to seek clarification on the allegations made. The newsroom is awaiting their reply.