The Malta Employers' Association (MEA) believes that the time has come to alter Malta's economic course, moving away from being dependent on "critical mass and a size of labour force which we are unable to sustain" to "quality and new technologies that will enable Malta to climb up the value chain".

In an interview with The Malta Independent on Sunday, the association's new director general Kevin J. Borg said companies need to be supported to adapt to a "dynamic, quality-driven business environment with new technologies at their core".

This is the latest call for the government to shift gear and change an economic model which is largely based on imported labour, one which is causing undue pressure on the country's infrastructure as well as creating overcrowding issues.

A few days ago, the MEA presented detailed proposals as the final preparations are made before the budget for 2025 is presented next month.

In its 2025 Budget Proposals document, the MEA called for the judicious use of public funds to avoid repercussions on much-needed strategic investment in infrastructure but also in other areas such as healthcare, social benefits, education and the environment, Borg said.

At the same time, it commented on Malta's current trajectory of maximising numbers which, coupled with an inadequate planning process, is leading to a general deterioration in the quality of life on citizens, a dampening of workers' motivation, and is exacerbating talent shortages as people are resorting to leave the country, he said.

Consequently, the MEA called for a reconfiguration of priorities in this budget, in favour of quality, innovation and upskilling as opposed to sheer quantity, while calling for serious and responsible discussion among social partners about the future.

"It is now time for our political leaders to initiate an urgent process of creating a long-term vision that balances out future economic and social objectives for the country. The MEA believes that the social partners ought to actively contribute towards this process and support the articulation of a plan to achieve this vision. Clearly, the new paradigm and plan would transcend a single legislature and would therefore need to be owned and supported by all political sides to facilitate its implementation," Borg said.

Asked about the government's initiative related to curbing the employment of foreign workers as cab drivers and delivery couriers, Borg stated that a number of cab operators reported repercussions over the past weeks "because the measure has had implications on a wider sector of business, especially in logistics and transport".

"The MEA continues to insist for longer-term planning to minimise shortages, pains and costs. These sectors and the businesses they serve have already experienced complications because of productive time lost in traffic, which often necessitated short-term compensatory solutions involving more vehicles and drivers," he said.

Borg also mentioned that the MEA is maintaining close contact with Identità following the setting up of a magisterial inquiry to investigate allegations regarding the issuing of false identity cards. Borg said that the regular check-ins with the agency are being made to ensure that their control measures are effective and well-communicated.

Having taken on the directorship of the MEA just last June, Borg said his priorities for the association are to build on its strong reputation with the business community, social partners and policymakers. He also aims to introduce new and innovative ways of engaging with stakeholders by leveraging modern channels and technologies.

Borg said that Malta's industrial relations landscape is presently characterised by two major factors. The first relates to legislation mainly coming from the EU that places strong focus on employee welfare such as the Working Time Directive, the right to disconnect and others. The second factor is the increasingly mixed workforce in most companies.

"In fact, due to labour shortages across various levels of employment, it has become quite typical for companies to employ a variety of different nationalities. This has brought an injection of talent and positive work ethic in some aspects but it has also created a number of challenges," he said.

On this, Borg suggests that the situation can evolve with a consolidation in numbers and a focus on higher-talented people to hopefully fit the "higher value-added business activity we are aspiring for".

Borg said that the approach taken by the MEA to balance the needs of employers with the rights and well-being of employees is to always aim for a win-win situation.

"Employers and employees cannot function or exist without one another. Furthering the interests of one side cannot be achieved to the detriment of the other because this will not work in the long-term and opportunities are lost for all."

He said that the MEA always advises its members to treat its employees in a fair and ethical manner. On the other hand, it expects workers' demands to be in line with the long-term competitive realities facing the employer.

He expects the MEA's role to evolve significantly in serving as facilitators of digital transformation, helping businesses navigate technological advancements such as AI, automation and cybersecurity.

To this end, last year the MEA already handled an ambitious project and published a Business Change Management manual for which, this year, it won first prize in the National Business Support awards.

"Through this manual and other means, we will continue to offer guidance on successfully integrating technology in our business models with the least pains possible."

Moreover, the MEA also aspires to continue playing a crucial role in shaping policies related to remote work and employee well-being. These will be aimed to assist employers to adopt flexible work arrangements, to offer training on managing remote teams and fostering a healthy virtual workplace culture.

The MEA is also already actively engaged in promoting awareness and adoption of ESG - particularly in the areas of the sustainable goals which are more closely related to Malta's remit.

"We see our role in strengthening ESG awareness among our members and promoting responsible entrepreneurship as key because if properly applied, ESG enhances the reputation of the company and makes it stand out among others who do not embrace it. It is akin to a Quality mark which communicates to the outside world that the company denounces the "anything goes attitude" so common in our country.