Unions who spoke to The Malta Independent on Sunday said that the social partners have as yet to start discussions on a possible revision of the Cost of Living Adjustment mechanism.

We are fast approaching the time when the government will be presenting its budget for 2024, and we are sure that once again the subject will be brought up, particularly by employers, given that as things stand now the COLA for next year will break the record that was established for 2023.

It was announced in the budget for 2023 that the COLA was to be €9.90 per week, an unprecedented jump which was caused by the high inflation. Employers had suggested a system whereby the COLA should be capped for a period of five years, and any additions or reductions would have been calculated at the end of this period. They argued that a hefty COLA caused disruption and that there should be more stability.

For their part, unions had said that there had been times when the COLA given out was less than €1 per week, and that they were prepared to discuss any changes so long as the €9.90 were given out in full. They are now seeking that any wage increases are not taxed.

We were told that there would have been discussions on this matter during the course of 2023 so that, when the budget for 2024 is presented, we would not be in the same position as we were last October.

But months have passed and it has been confirmed that no progress has been made in this regard. We have been told that the government and the social partners, who form what is known as the Malta Council for Economic and Social Development, have not touched on the subject. There is therefore a risk that the next budget, for 2024, will arrive without there have been a discussion, much less an agreement, on the way forward.

So the question that we are asking is: what are we waiting for?

We understand that the MCESD has other matters on its agenda, but we believe that something as important as the COLA should be given priority. Wage adjustments affect both workers and employers, and they should be given the importance they deserve.

This is particularly so at a time when inflation is hitting hard and it is already known that current statistics show that COLA – were it to be decided today – would be around €13.40 per week. This would be yet another shock to the system, with many employers finding themselves in more difficulty than they already are to keep up.

The government, which forms part of the MCESD, has a duty to see that any possible changes that will stabilise the COLA system (as the employers are arguing) while at the same time giving workers what is their due (as unions are arguing) are discussed sooner rather than later.

So the question we ask, again, is: what is the government waiting for?