Cab industry: For a fair and balanced labour market, curb tax evasion as well

The government has finally made a move to curb the number of non-EU nationals intending to come and work in Malta as food couriers and cab drivers.

The decision was made after an evaluation carried out by Jobsplus showed that the labour market for cab drivers and food couriers has reached saturation point. As a result, the agency recommended refusals for new applications, including from individuals still abroad and others seeking a change of employer.

The new measure does not affect workers currently employed in these two sectors and applications for renewals of existing employees will continue to be processed without interruption.

In a statement released last week, the Home Affairs Ministry said the new rules were needed to support the “stability and continuity of employment” for those already plying their trade as food couriers and cab drivers. The rules however preclude existing non-EU nationals in these two sectors from changing employer within the same sector because it would be deemed as a new work permit.

The ministry also assured us that the Single Permit system, which combines residence and work authorisation, “undergoes a rigorous assessment process” by Jobsplus.

In the circumstances, we are tempted to ask whether Jobsplus undertook its labour market surveillance now in the aftermath of the 8 June elections because of the pressure applied by voters.

Jobsplus has always had the remit to keep its fingers on the pulse of the job market and determine whether applications for work permits for non-EU nationals should be accepted or not. The rules have always made it clear that non-EU nationals may obtain a work permit only if their skills are unique and required or if vacancies persist because labour cannot be sourced from the domestic market.

Labour market surveillance should be an ongoing thing so that prospective saturation points in the market can be flagged in advance to make it easier for market operators to plan for any changes.

At the same time, the government must ensure that foreign workers are as protected from abuse by their employers as their Maltese counterparts. Minister Byron Camilleri said in parliament that employers under investigation for exploiting their employees will not be permitted to recruit additional foreign workers until such investigations are resolved. This is a good thing but unless enforcement on the ground is adequate his words will simply fall on deaf ears.

A recent human trafficking case brought to court by the police, saw a Maltese restaurant owner sent to jail after he admitted charges of employing foreign nationals even though his operations were either shut or not yet functional. This vigilance should be ongoing and done in a structured way.

It is useless having a flurry of activity now simply because the authorities need to satisfy public frustration on over population.

The labour market cannot simply be left to its own devices, especially in a small country where population density is increasingly becoming a frustration for many.

The authorities have to be sure that who comes to work here is doing so in jobs and sectors where labour is required to maintain economic growth and living standards. But the authorities must also ensure that all workers without distinction are afforded their rights as etched in the law.

Furthermore, the tax authorities should ensure that every cab company is paying the taxes due by closing any loopholes that exist. Enforcing fiscal obligations creates a level playing field that will undoubtedly filter out the cab companies that are not serious and fail to adhere to the country’s tax and employment legislation.

At the same time, care must be taken not to tighten a market too much that would fuel higher consumer prices artificially. This is why vigilance and market analysis is required on a regular basis.

In this way, the government would truly live up to its own mantra of maintaining a “fair and balanced labour market that protects the rights of all workers while addressing the needs of employers and the Maltese economy”.