Last week’s unexpected blackout left many gasping for fresh air in one of the hottest nights this summer, but much worse it has left the business community with a hole in their pockets. To make matters worse still, for a couple of minutes the Malta International Airport power generators failed to kick in. This resulted in a number of flights having to be diverted or delayed.
Some days before this total blackout, the Chamber of Commerce published a challenging document entitled “Malta’s Economic Vision 2014-2020”. This was followed by another document published by the Malta Employers’ Association “Proposed Amendments to the Employment and Industrial Relations Act, 2002”. The total blackout issue did not feature in any of the documents. Like the rest of us, they expect uninterrupted service and no black-outs from a multi-million power generation house.
The Chamber of Commerce made 52 recommendations while the Malta Employers’ Associations proposed a good number of amendments to the Employment and Industrial Relations Act. Both documents are intended to influence the national agenda. Knowingly or unknowingly, the documents complement each other.
The timing of the publication of these documents could not have been better as the pre-budget document is expected to be published, hopefully shortly. The pre-Budget is an important document in setting clear targets and objectives while giving historical data, economic performance and other indicators. The document is intended to stimulate discussion between the social partners and other interested groups to avoid surprises in the Budget for next year.
The Chamber’s vision is clear, full of dynamism and ready to lead. The Chamber is eager to put into motion what they believe Malta needs as a top priority to secure a competitive advantage. The Chamber has plotted an economic vision for Malta which is intended to combat cut-throat competition in various sectors of the economy, while proposing new economic areas where Malta can take a leading role. The document referred to a wide range of issues which, in the Chamber’s opinion, should go under the magnifying glass. The public service, the current judicial process, Enemalta Corporation’s inefficiency, the COLA mechanism and the unintended consequences of Malta’s labour law are only a few. However, a statement in the Chamber’s document jarred: “For the first time in Malta’s political history there is a Party in Government with an overwhelming majority of seats in Parliament. This must be used as an opportunity for Government to take timely and decisive policy action which has otherwise not always been possible to date”. I want to believe that this is not what the Chamber of Commerce meant. But if this is what they meant, then The Chamber of Commerce is heading in the wrong direction. I trust that the Chamber is not encouraging Government to take whatever decisions deemed as necessary without proper consultation.
MEA’s candid documents to amend the EIRA included a proposal which states: “employees suffering from a hangover, sunstroke, sports injury or any other ‘self-inflicted’ ailment should not be entitled to paid sick leave” as expected was not greeted with applause.
In my opinion, the MEA went overboard in its attempt to stop sick-leave abuse. I am certain that nobody can deny MEA’s claim that there is an element of abuse in sick leave. However, MEA’s heavy handedness in dealing with this issue has prompted the unions to wear the combat gear. Rightly so, Prime Minister Joseph Muscat came to the rescue and, while he made it amply clear that the solutions proposed by the MEA were not the right ones, he acknowledged there are issues which need to be addressed. He even went a step further and encouraged the social partners to pool their resources and look for just solutions to the problems raised by the MEA. The MEA made other proposals but the sick leave issue killed the rest of the proposals, including that regarding trade union recognition at the place of work.
The PN should take the opportunity to climb down from the fence, engage in public discussion and make known its proposed amendments to the current employment legislation and react to Malta’s Economic Vision 2014-2020 by the Chamber.
The creation of wealth needs to be supported by a forward looking legislative employment structure. Rigid employment legislation, or even worse employment legislation allowing for different interpretations, is not conducive to the promotion and creation of business and new employment opportunities.
Trade unions are well aware that if they push private enterprise too far they will end with the short end of the stick and redundant workers on their hands. Collective bargaining at enterprise level has proved to be beneficial to all. Bottom line driven companies have to watch constantly for new market competition and unions have to acknowledge this and adjust.
Cut throat competition and new market realities are not unfamiliar to the social partners. These are ignored at the peril of all. We have to be prepared for the unexpected; no one owes us anything, let alone a living. Striking the right balance between creating wealth and ensuring socially just measures is no mean feat, but nonetheless is a must.
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