UHM calls on parties to solve pending pensions quandary

The Union Haddiema Maghqudin wants to see political parties introduce more measures that will encourage an increase in Malta's labour market, the union said today.

In its presentation of electoral proposals, the UHM said Malta had to transit from a passive social state, to a more proactive state through the use of active labour market policies.

The union is proposing incentives for early school-leavers and single parents to be integrated in the labour market, and measures that create a market for training and help employers in training workers.

The union also said that people dependent on social benefits and at risk of poverty should be incentivised, through a reform in the benefits regime, to encourage them to enter the workforce.

"Benefits should be slowly phased out if we want such individuals to climb the career ladder," UHM secretary-general Josef Vella said. "Not phase them out completely for everyone, but for those who find employment, and not cut out as soon as somebody find employment, otherwise this leads to workers preferring to remain on benefit."

Vella also said that political parties had to prize the important of integrating more women in the labour market, but also apply positive discriminatory measures for women to men, as well as encourage better work-life balance and the inclusion of men in domestic household duties.

Vella said that while women under 35 years of age in the labour market exceeded the EU27 average, the rate of stress had increased from 11% of the workforce in 2000 to 19.5% in 2010. Vella reiterated the UHM's budget proposal for a private-public partnership that will offer free childcare centres.

The UHM also called for concrete political action on pensions. "Any elected government will have to take pensions seriously. I look at young people today and wonder whether they will ever have adequate pensions," Vella said.

"Political parties must shoulder the responsibility and prepare the people for the decisions that must be taken. We make it clear that we will not accept a situation by which the third pillar will substitute the second pillar.

"We are not in favour of increasing pensionable age, and this will only come into force if action will not have been taken. We want to increase productivity, and improve salaries, but also encourage workers to save for the future. But you cannot force an individual to start saving if he doesn't have enough salary to go by each month. The union cannot simply ask employer to increase salaries. But productivity and profits lead to increase in salary, and an increase in social security contributions."