Chamber says union proposals on public contracts ‘dubious and discriminatory’

The Chamber of Commerce has joined a chorus of disapproval from Malta's employers, who are taking issue with a pre-electoral demand from the General Workers Union to restrict eligibility for government contracts to only those companies whose workers are covered by a collective agreement.

In a statement, the Chamber said it supported efforts to eliminate abuse in the area of service providers with employees on minimum wages or precarious employment contracts, saying this had led to unfair competition and illegal conditions of employment.

"However, this latest proposal cannot stand as it is both discriminatory and it interferes with the workers' fundamental right for freedom of association. There are certainly other acceptable ways, particularly through proper monitoring and enforcement of current legislation and practices," the Chamber said.

The Chamber added that it was "shocked" by the GWU's opposition to the practice of government awarding service contracts to the private sector. "History has proven, time and time again, that work allocated to the private sector has given better results, providing more efficiency and value for the private taxpayer's money."

The Malta Employers' Association last week also said it disagreed with the proposal put forward by the GWU calling on government to award contracts only to companies covered by a collective agreement.

"Employees should have a free choice whether to join a union or not, and one cannot generalise that non-unionised companies have inferior conditions of employment when compared to unionised ones," the MEA said.

However, the MEA agreed that conditions of employment should be safeguarded, and that government contracts should not be awarded to companies that offer substandard or illegal conditions of employment.

"We have voiced our concern on this issue many times and appeals for a level playing field between employers, as there are recurring occasions in public procurement where companies who offer decent working conditions lose out to others who may be resorting to illegal working practices.

"The Association insists on a level playing field among all companies, including between those who are unionised and those who are not, as long as labour laws are respected," MEA director-general Joe Farrugia said.

The MEA has recommended the setting up of a services charter to cover the security, cleaning and care working sectors, to ensure that any companies who are committed to comply with minimum conditions - including those who may be unionised - will be given preference if they are signatories of the Charter.

"We regret that although the Prime Minister and two ministers have publicly proclaimed their support for this initiative, the MEA is still awaiting a feedback from the government so that the Charter can be finalised and implemented. We hope action is taken in the coming weeks in the interest of employees and law abiding companies," Farrugia said.