The Malta Independent 21 May 2024, Tuesday
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Worse Than unemployed

Malta Independent Sunday, 27 November 2005, 00:00 Last update: about 19 years ago

Ever since the news broke that almost one thousand employees would lose their job in the largest remaining textile industry in Malta, I have listened to countless expressions about the fate of these people from several quarters; ranging from the odious “Haqqhom!” (Serves them right!), to the pitiful “Imsieken!” (The poor lads/lasses!).

It is impossible to feel the pain suffered by these people unless one has been through such an experience himself. The overwhelming sense of personal disappointment coupled with the obvious worry about their uncertain financial situation must be horrible. Remember, that unlike those who were shown the door at places like PBS and Malta Drydocks, these fellows are not each leaving with an Lm18,000 cheque.

Unfortunately, it is only when such large-scale layoffs occur that the rest of us contend with the threat of unemployment; when smaller business outfits close shop and sack a dozen or so people, nobody ever bothers, the media don’t deem it worth their while.

The political response from both Blues and Reds to this event alternated between shameful and opportunistic. While Sant, Cuschieri & Co. used every subtlety in their little-red-book-of-political-tricks to insinuate that Malta’s membership of the European Union is the cause, Gonzi, Gatt & Co. insist that had we not joined the EU this company would have shut down years ago, conveniently ignoring that (like-it-or-not) their party’s ex-leader did write individually to these 850 souls suggesting that membership within the EU would afford some special guarantee for their employment.

What was indeed horrid was the artificial sense of pity showered on these people by Sant and Gonzi, (with the very able assistance of Super 1 and NET) after the decision to shut down the factory was made public.

Alfred Sant chose to visit these employees outside their place of work; butt-to-the-wall, arms folded he asked them the dumbest of questions – whether they had any training – sure, in the stone-washing of jeans!

Premier Gonzi on the other hand behaved as if he were the CEO of the Employment and Training Corporation assuring them that he would do everything in his power to help them. What is really cheeky is that apart from this well-rehearsed political pantomime, neither Gonzi nor Sant have ever taken much time off to cry with the other 7,000 who are currently unemployed; a question of political critical mass, I guess!

The Greens will not cry with these people because we are frank enough to admit that their situation may actually get worse with the passing of a few weeks. There exists the risk that several of them (and many others) will experience a condition that is worse than being unemployed; the condition of un-employ-

ability.

This is a sad but realistic situation that many of these people may possibly face, unless of course the government and Opposition continue fighting so that they can all quickly move from a modest Lm70 per week job ironing jeans at Denim, to a breadline Lm55 a week job flipping greasy burgers in some restaurant chain.

The mounting pressure of loan commitments and the need to fill hungry bellies may force many of them to take whatever is on offer. I suspect that in a few months’ time many of them will be doing one and a half jobs for two-thirds of a wage. As long as they are off the unemployment register, the Reds and Blues will not give these folks a second thought. Any-job-is-better-than-no-job is a creed shared locally by both socialists and conservatives, but not by Greens.

Let us face the truth – it is not abnormal for Malta to have four to five per cent unemployment. In fact if this were the truth, we would actually be doing jolly well! A churn in the labour market is inevitable and in some ways necessary.

There exists a condition in economics known as NAIRU (non-accelerating inflation rate of unemployment) that states that a level of unemployment is necessary to prevent an explosion in the cost of living. It is indeed sad listening to Premier Gonzi (in KMB-mode) pathetically declaring in his budget speech that “as long as there is still one person employed, we will not cease working”. This is the same brand of cheap demagogy, targeted to the economically illiterate, of which Mintoff was the master; Gonzi should aim a little bit higher. A rate of four to five per cent unemployment is not a tragedy. What is tragic is if these four to five per cent remain the same four to five per cent; what is catastrophic is when droves of them are permanently de-classified as disabled.

The Greens believe that rushing these people into whatever-job just to keep the unemployment numbers down, so that Super One will have less to moan about, is the worst strategy the government can pursue for those recently made redundant. We had a similar experience in the eighties with the creation of the workers corps; a philosophy built on the blind vision of “xoghol ghal kulhadd bil-minimum wage” (a job for everyone at minimum wage); a strategy that populated the army of the unemployable and led to the shifting of thousands off the unemployment register on to the disability register, to the extent that this register today numbers some 10,000.

The Greens believe that unemployment must not be vilified or disgraced, but taken as an opportunity for retraining. In our outdated and enticing nanny-state culture it is hard for the folks at Denim (and in other distressed companies) to believe that with the right policies and social assistance in place, a period in unemployment could improve their chances in life. This is the time in which many of these people need to catch up on the gaps and canyons in their education. It is sad reading that many of them do not possess one ‘O’ Level; some dumb-ass must have convinced them that certificates were just to hang up!

Basic courses in, for example, introductory IT skills and customer service, ably provided by ETC, are a must for all of them. The problem is that re-skilling takes time, and time requires money. The unemployed have much of the former but little of the latter.

Therefore in order to give these 850 (and many thousands of others) not only a chance but a better chance, we have to provide more generous social assistance that should be conditional on the level of attendance and extent of success at ETC courses. This measure should be supported by the taxpayer.

If we have accepted the payment of millions of liri in handouts to State employees of bankrupt public corporations, why shouldn’t we sanction more generous assistance that will enable the (genuinely) unemployed made redundant in the private sector to continue

enjoying a good standard of living during their period of retraining.

If we can support close to 10,000 adults in tertiary education and as many “disabled beneficiaries”, why not the unemployed – why are they always earmarked for public disdain? I am not advocating the underwriting of their vehicle HP dues, but apart from the freezing of home loans (for more than six months if necessary), we should ensure that the families of the people can afford good food, adequate clothing and the occasional treat. Their children should be protected from undue hardship – Lm29 liri a week in unemployment benefit is charity not social assistance!

The remaining problem is identifying where the government is to get the money for this. The answer is simple; the political effort though is Herculean. Eliminate all the benefit abusers, a good number of whom have the cheek to pick up their cheque just before driving off in their fancy cars to their black-economy jobs. Anybody prepared to bell these fat cats?

Edward Fenech is spokes-

person on finance, the economy and tourism of Alternattiva Demokratika – The Green

Party

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