Some 850 workers have received notice of their termination of employment as Denim Services Ltd has decided to close down its operations in Malta to move elsewhere in January. Other workers, particularly those employed in the manufacturing industry, are also worried that it will soon be their turn.

The reduction in the number of unemployed people that Malta has experienced over the past year or so will all be “lost” at one go, as many of the workers employed in the company are still without an alternative employment.

The situation at Denim had a great impact on public perception and was often the topic of discussion among politicians because of the sizeable amount of people who will become unemployed at the same time when the factory calls it a day.

But, in such instances, it is not the numbers that count. These “numbers” are individuals who have their own families to support, their own loans to pay and their own needs. Just like other individuals who have been listed on the unemployment register for months because they cannot find a job.

It is good that the government, the opposition, the unions, the Employment and Training Corporation and employers are doing their utmost to help these workers find alternative employment. It is good that the banks have been involved to temporarily suspend loan repayments. The question is: Will the same happen if smaller factories or companies close down?

Secondly, the issue of the closing down of this particular factory has unfortunately been given a political tinge, as is often the case in Malta.

On the one hand, the government blames globalisation as being the main reason, while the opposition puts the blame squarely on the government for failing to create enough job opportunities to make up for others lost.

The truth, again as is often the case, lies in between.

Generally speaking, globalisation has a lot to do with the fact that companies stationed in Malta are moving elsewhere. This is largely because job conditions in Malta have improved considerably over the years, including the wages.

In emerging countries, particularly Asia, Africa and eastern countries, the pay packet is certainly lower than that in Malta. Companies obviously look at the cost of their operations, and if they can produce their items there at a fraction of the cost they would incur in Malta, then it is clear that they would

prefer to spend less to have, ultimately, the same product.

This situation, of course, has its positive element because, on the whole, it is evidence that Maltese workers enjoy better working conditions.

But it has its negative side too because it also means that there needs to be a change in the local industry, and changes are not always easy. There must be a shift towards an industry that is more compatible with this country’s circumstances. It is in this area that not enough has been done and that a stronger effort is needed.

It was known that there needed to be a transition from one type of industry to another, but the work that has been carried out in this regard to prepare Malta for such an eventuality – which is now at the door – was not sufficient. In this regard, the government and the authorities responsible for attracting new investment and to retrain workers must pull their socks up.

What happened to the Denim workers will happen to others in the near future. These workers, along with others who have also lost their job and others whose employment is threatened, deserve all the support and solidarity they can get in such a difficult situation.

But Malta must work harder to be better prepared to face the challenges that it is facing.