New ‘precarity rules’ for tender detrimental to small business, says Chamber

The Malta Chamber of Commerce has complained to the Prime Minister to express surprise at changes to tender conditions in an effort to combat precarious employment situations, and called for an immediate revision of Circular 12.

Dubbing the circular publishing the legal changes "unfortunate and ill-timed", the Chamber said that discussion on precarity in the Maltese labour market was still ongoing in the Malta Council for Economic and Social Development with trade unions, with the constituted bodies still finalising their position papers.

"Whilst it appreciated the sense of urgency and timely action, the OPM should have delayed this circular to allow social partners to conclude their ongoing discussion. By acting prematurely and laying down the new rules in haste, government has clearly undermined discussions that are still taking place at the MCESD," Chamber president David G. Curmi said.

"This may be perceived as another instance in which government acted in disregard of the collective opinion of the social partners represented at MCESD."

The Chamber said it fears that the new rules will create a number of negative effects on the private sector and on SMEs in particular.

"The conditions as published have eliminated the opportunity for certain SMEs to participate in the public tender process because it precludes them from acting as sub-contractors. Sub-cotracting in itself is not to be considered a malpractice. Rather it is a means for SMEs to cluster, consolidate, cooperate and expand their business," Curmi said.

The Chamber expressed concern that the amended conditions run contrary to its advice recently expressed in the press as well as during the relevant MCESD meeting when it said that any further regulation introduced in relation to precarious work should be directed solely at those sectors which are found to be susceptible to the practice and should not encompass the entire labour market.

"The amendments also run counter to the declared spirit of the new administration in favour of SMEs' better integration in the public procurement system and its declared stance against bureaucracy," Curmi said.