Increase the minimum wage

The prophets of profit will tell us a rise in minimum wage will be a disaster, but how do countries with higher wages than Malta’s still attract investment?

In the coming weeks we can expect a lot of statements and discussions on the budget.

The Nationalist Party will probably say that in spite of the turbulent global economic situation, the Government has managed to attract investment and create jobs. Labour will probably say the opposite, adding that people are being taxed for corrupt practices (of course, like the PN, PL will not oppose the financing of political parties by big business and both parties will keep Malta’s system of political money laundering in place)

Employers associations' will speak up against the statutory increases in cost of living compensation, and workers’ unions – blue or red – will try to defend this right and others won during the years. The GRTU will use its strategic political position to get the best deal possible for its members. Of course there are many other protagonists, but usually it is these 5 voices which seem to be the loudest come budget time.

In the coming weeks Alternattiva Demokratika, the Green Party will be presenting various proposals covering various areas of society. But to set the ball rolling, I would like to re-present a proposal which we have been putting forward for some years now, and which the PN-PL duopoly has been consistently opposing – an increase in the minimum wage. 

It is more than evident that Malta’s minimum wage does not suffice to meet the cost of living. Besides, more and more workers are being involved in precarious low-paid and unsecure employment especially in contractual and part-time jobs. Many have to work more than one job to make ends meet, and the work-life balance is heavily tilted towards the former.

To make matters worse, the PN-PL duopoly is opposing the European Commission proposal for a working time directive, which would stop employers forcing their workers to work very long hours. In short, the two parties in parliament want workers to make more money by working extra long hours and having less time for their family and for leisure. PN-PL will not dare propose increase in wages!

An increase in the minimum wage, including that for part-timers and contractual workers on a pro-rata basis would hopefully improve the situation of the most vulnerable workers. It would also encourage more people to enter the formal labour market, making work pay. Of course, such an increase would have to be sufficient to cater for the realities of today, and this should not exclude a realistic assessment of social benefits, as some are abysmally low or even inexistent – given that certain vulnerable groups are being excluded from them.

The prophets of profit will tell us that an increase in the minimum wage will be a disaster for the Maltese economy. Yet I ask: how do countries with higher wages than Malta’s still attract investment? Of course, wages are just one (important) factor amongst others in the attraction of investment – other factors including, for example, productivity, bureaucracy, infrastructure, environmental considerations, fiscal incentives and so forth.

In this regard, Green economic policy believes that rather than putting more tax on ‘goods’ such as labour and sustainable practices, the burden should be put on ‘bads’ such as practices which are harmful to the environment.

In short: It’s about time to increase Malta’s minimum wage. What are we waiting for?

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Alfred Galea
Falke, you're right in saying that, but you're not gonna get that in Malta, not when everybody expects the government to look after them from cradle to grave, like the two socialist parties are doing here. Not when you have idiots running entities coz of who they know and not on what they know and not when most of the island is content with mediocrity with hardly any competition allowed for high paying jobs.
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Alfred Galea
Spit, qed taqa ghan nejk....kulhadd qed jidhaq bik....qed jahsbuk l-ispettur Clouseau.....ara tippruvax taqbad lil min ha l-4 miljuni minghand BWSC minflok.
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John Mifsud
The keys to attract investment are (a) productivity, (b) a skilled and educated workforce. That is why countries like Finland and Denmark with very high labour and social provision costs consistantly score at the top as destinations for investment. Running a 'race to the bottom' will get us nowhere. If lowering workers' renumeration and cutting social provision in themselves attract investment, then places like Chad or Burkino Faso would be topping the world leagues for investment and not the Nordic countries.
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Alfred Galea
James how about telling us those nationalities' "take home" pay as a percentage of their wages?? Telling us what their taxes/fees/premiums as a percentage of their wages are will help too. Then we can compare like with like.
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Peter Cassar
On this issue the numbers speak for themselves. Malta’s monthly minimum wage for adults is set at €601.90. The monthly minimum wage in Luxembourg is €1,570.28, in Ireland it is €1,499.33 and in the UK €1,398.80.
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Alfred Galea
Another socialist party, as if two of them ain't enough. And this from "tomorrow's leaders"......
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Paul Sammut
....but how do countries with higher wages than Malta’s still attract investment? Well some would tell us 'It's the economy, stupid!' But no. Cannot be. Not in in Malta where we as they frequently tell us we have the best of all possible economies. Perhaps it's because 'It's the people, stupid'.' Or let's rephrase 'It's the stupid people!'
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well to all our questions ? or we cannot answer? maybe we don't get an answer? or maybe what our hon. prime minister says is Holy:) eh here we have treasures in Malta , according to hour Hon.Prime minister ;-)
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Georgette Bezzina
"I would like to re-present a proposal which we have been putting forward for some years now, and which the PN-PL duopoly has been consistently opposing – an increase in the minimum wage" Michael Brigugilo kindly quote verse and line were PL has ever objected to an increase in the minimum wage.
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eleonoray86cws Ca?uana
@Alex What you wrote is just a slogan. Increasing the minumum wage will not burden the taxpayer, but give the possibility for the worker (who is also a consumer) to make ends meet. PS: People on mimimum wage pay taxes too
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Another lame brain idea that the AD & PL has chosen to introduce at a time when the sewage is so strong at Castille that the PM and his entourage must wear long rubber boots to go to their offices. Surely the AD can find better things to express an opinion on. God forbid that for once you put your thinking cap on. Whose side are you on? Are you trying to deflect attention from the present issues? Please tell us what you think should be done about corruption, perjury and tax evasion. How sad that Malta cannot have a competent third party in this day and age to make an effort to release this country from the shackles of the two party system that is widening the divide between the haves and the have-nots.
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Alex Grech
That's exactly what we need...more Socialism whilst the Taxpayer continue to take the burden! The Greens are something of the past...RIP!