The Malta Independent 27 September 2023, Wednesday
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GWU says it will not accept employers’ proposal to change COLA mechanism

Wednesday, 17 August 2022, 16:01 Last update: about 2 years ago

The General Workers’ Union (GWU) will not accept the proposals made by employers to change the Cost of Living Adjustment (COLA) mechanism.

GWU said that a change of mechanism to appeal to the employers’ proposals would be a violation of the law.

It further stated that this agreement was agreed upon by all social partners: employers, trade unions and the government.

"When in the past an employee was given few cents according to the mechanism, it was accepted because it was according to what was agreed, so now that the cost of living adjustment will be high, it cannot be touched either,” it said.

The GWU emphasised that COLA is given to everyone to maintain the same purchasing power.

The GWU emphasised that “no one can break an agreement between all social partners,” even if employees received wage increases in the last 12 months.

It also recalled how Malta recorded the lowest inflation rate in Europe after the government took the necessary measures to maintain competitiveness.

"In a historical context, this mechanism agreed to between the social partners helped to stabilize industrial relations, as the inflation part was countered. If we go back from this it will definitely create industrial unrest," GWU said.

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