‘Untrue that foreign workers have inferior working conditions’

Employers' association president Arthur Muscat has denounced the rivalry and "outright animosity" between trade unions, complaining that employers are being dragged into inter-union disputes with increasing frequency.

"It's upsetting industrial relations stability," Muscat told the MEA annual general meeting. "One major source of such disputes is union recognition, with more than one union claiming to represent either an overall majority of employees or else a category which is in many cases loosely defined."

Muscat said MEA has made recommendations for a clear method to settle recognition issues, and said that non-unionised employees should not be forced to pay 'representation fees'.

"Penalties in the shape of so-called representation fees to be paid by non-union members and forwarded to a recognised union are absolutely not acceptable. We are determined to defend the fundamental principle of freedom of association, which by definition also includes freedom of disassociation," Muscat said.

The MEA president also said that inter-union conflict was destabilising collective bargaining, saying that agreements were conditioned by the pressures which a rival union may be making on employees to switch membership, with promises of a better deal.

"Such situations are undermining the foundations of industrial relations, are raising employees' aspirations in an unrealistic manner, and leading to expensive settlements which weaken competitiveness."

He also reiterated MEA's opposition to raising the minimum wage, calling it "a recipe for unemployment."

Muscat said MEA had already conducted studies showing Malta had relatively few people employed on the national minimum wage.

"What is required is not a revision of the minimum wage, but a strategy to have as few people working on the national minimum as possible. Organisations that persistently call for an increase in the minimum wage without going into the merits of where the finance is coming from or what negative effects economic repercussions may occur are frankly being amateurish in their stand.

"If there is a concern about particular pockets of poverty then these problems need to be addressed through focused social support initiatives and not by unilateral interventions, without economic logic, on the minimum wage."

Muscat also warned against a rise in youth unemployment, saying that the rise in qualified youths was desirable if this was tagged with productive employment related to their field of specialisation. "To avoid an irrational oversupply of academic graduates better quality career guidance is required, and we also require training and courses which dovetail into real economic needs."

Muscat also said that Malta was offering a considerable number of jobs which were not being taken up by Maltese workers. "There is a misperception that foreign employees have inferior working conditions and are working in the black economy. In reality, the vast majority of them are regulated and taking up jobs which have been turned down by Maltese workers, or Maltese workers were incapable of filling."