The Confederation of Malta Trade Unions (CMTU) is calling for a collective effort to reach an agreement on the Cost Of Living Adjustment (COLA).

Last Sunday, TMIS reported that the International Monetary Fund had, for the second year running, urged the government to scrap the COLA granted to workers through yearly budgetary provisions. In its place, the IMF has recommended the institution of “productivity-linked wage increases at enterprise level”.

The recommendation came just as the unions and employers’ bodies started going head to head, as per the annual pre-budget custom, over the level of the controversial wage increment to be granted, or not granted, in Budget 2010.

When contacted by The Malta Independent yesterday, CMTU president William Portelli said that scrapping the COLA concept is not ideal but an arrangement that reflects the businesses’ requirements to maintain growth and to protect the workers’ standard of living needs to be reached.

The employers need to be flexible towards reaching such an agreement while improving their businesses and employees’ wages remain in line with cost of living increases, he went on.

An all round understanding must be developed to reach such an agreement, he added.

Something realistic has to be done to maintain growth momentum because that is most important during such difficult economic times, he continued.

A fine line lies between striking the balance and having a lopsided situation, he said.

The needs of the workers cannot be put aside as while capital investment in a company is of utmost importance, one must also invest in human resources, Mr Portelli added.

Long-term intelligent goals need to be developed in a way that both employers and employees can enjoy the benefits towards the national interest, he said.