Żminijietna - Voice of the Left views the comments given by Josef Bonnici, Governor of Malta Central Bank, during the Central Bank’s annual report as a direct threat towards the present mechanism of COLA.

The idea that the cost of living compensation should be strictly tied to productivity has nothing to do with the basic premise of COLA, which was introduced to compensate for increase in cost of living.

The Governor’s arguments are dangerous as this will revive the same chaotic situation as what had happened in the late 80s to the Phoenicia Hotel workers, when the management refused to give a cost of living increase. COLA was the direct result of and the solution for such situations. Żminijietna believes that productivity can be increased through progressive social policies such as improved working conditions, a rise in the minimum wage, increase in job training and other work incentives, such as more child care facilities and a work-life balance.

The Governor’s neoliberal way of thinking is similiar to the European Neoliberal strategy which is resulting in an increase in the working poor and deregulation of the labour market. Recent elections in France and Greece have shown that this model is being rejected by the masses. COLA should be revised so that the cost of living adjustments are more realistic.

■ Richard Mifsud

PRO

Żminijietna - Voice of the Left.