Chamber of Commerce supports government opposition to quotas

The Malta Chamber of Commerce has called for measures that can encourage "a natural raise" in the number of women at the decision-making level in listed companies, instead of having an EU-mandated quota for 40% of all company boards to be composed of wome

The Chamber is supporting the Maltese government's decision to join a diplomatic push spearheaded by the United Kingdom to oppose the quotas, which are being sponsored by EU justice commissioner Viviane Reding.

Chamber president Tancred Tabone said measures that encourage women to retain their employment and strike a balance between work and family commitments, should be prized above quotas.

"The Malta Chamber believes that merit, experience and achievement should be the most important qualifications for any post, and most definitely not gender," Chamber President Tancred Tabone said.

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Tabone had already told Reding back in June that although it was important that more women are incorporated into the labour force, quotas were not adequately addressing the need to improve gender balance on board seats. "Measures to impose a standard and uniform scenario on Europe as a whole may not apply to Malta. This is due to cultural issues as well as the availability of support structures for professional mothers."

Tabone also said that with quotas taking precedence over skills and competences, women may be given jobs on the basis of gender rather than academic qualifications and merit. "The Malta Chamber believes this may in turn hinder women's long-term career progression. From a business perspective, setting mandatory quotas will force entrepreneurs to get sidetracked from making decisions in the interest of their companies."

Women's lobby groups such as the National Council of Women and the Malta Confederation of Women's Organisations have expressed outrage at a decision by the Maltese government not to support the EU push for the 40% quota.

The Labour Party (PL) has declared itself in favour of mandatory quotas for female participation at executive level on all government boards and public listed companies - in line with the directive proposed by EU Commission Vice-President Viviane Reding.

According to the European Commission's database gender quotas, Malta's 19 largest quoted companies trading on the Malta Stock Exchange are all chaired by men with the company boards having just three women, while the remaining 97 members are men - a participation rate of just 3%.

The law is seeking to have a female participation on boards of directors of companies listed on the stock exchange of 40% by the end of 2020 or face tough sanctions, a move that will hit companies such as BOV, HSBC Malta, GO plc, International Hotel Investments, Fimbank, Lombard Bank, Farsons, Middlesea Insurance, Island Groups and Maltapost.