Two major trade unions said they are open to discussions on a review of the Cost of Living Adjustment (COLA) mechanism, but only after the 2023 Budget is presented.

As a result of a high inflation, the COLA for 2023 is expected to be between €8 and €10 per week, a situation that could have repercussions on businesses. The Malta Chamber of Commerce has proposed that employers should not be obliged to pay the full COLA to workers who were already given a raise this year, but only pay the difference between the COLA and any increases already given.

The secretary general of the General Workers Union (GWU) Josef Bugeja and the CEO of UHM – Voice of the Workers Josef Vella, both came out against the proposal when speaking to The Malta Independent on Sunday, arguing that the COLA is owed to the workers for what they already lost due to inflation.

Government has already said that it will not be touching the COLA mechanism this year. However Finance Minister Clyde Caruana left a small opening. He said that when he reads the COLA rate in the budget speech, it must be given in full to employees, but added: “If the employers want to achieve some changes, they have to discuss those changes even at perhaps shop-floor level with the unions, but otherwise, as the minister of Finance, the COLA I will read in the Budget speech has to be given in full.”

But both Bugeja and Vella are adamant that there will not be any changes to the COLA this time round. However, they said that they are open for discussions to be held about the mechanism for future years.

See interview with Josef Bugeja here

See interview with Josef Vella here