Minister lauds job-saving efforts, GWU boss says poverty reaching middle class

The International Labour Organisation's annual conference on Monday heard Malta's minister for public dialogue Chris Said laud his government's efforts at saving 5,000 jobs and creating 20,000 new jobs over the past four years,

But the same conference also heard General Workers Union secretary-general Tony Zarb complain that despite the efforts at saving jobs, Malta had experienced a sharp rise in precarious employment, especially in the services sector, "and a total disregard" to workers' rights with working conditions that fell below the provisions of labour law.

Addressing the 101st session of the ILO's conference, Said government's targeted intervention at the height of the 2008 financial crisis had saved thousands of jobs, but warned that vigilance was still needed against new threats.

Speaking against a backdrop of new data showing the Maltese economy was now in a recession, after economic growth fell by 1%, Said said tackling issues such as pensions and financial sustainability had to be bolstered by a spirit of social partnership, rather than austerity.

"This is vital if we are to succeed in ensuring a more socially just and equitable society where all individuals are provided with the right tools to develop their full potential, thereby putting them in a better position to make a success of their present and future. Their benefit is an investment in our own benefit and future," Said said.

But on his part, Zarb reported on a more morose picture. "The government seems happy to boast of the amount of new jobs created across industry. While the official figures might look positive with an unemployment rate below 7%, the GWU, rather than being pleased with the quantity of new jobs, is more concerned with the quality and type of jobs that are being created and offered."

Zarb claimed poverty in Malta was "spreading fast" and even reaching middle-class families, citing statistics which he said showed 21% of families were not copying with daily living expenses. "So much so that we saw the birth of a new social class - the class of the working poor," Zarb told the ILO.

The GWU secretary-general also said the Labour Force Survey for the last three months of 2011 showed the largest share of unemployed persons, 34.4%, was recorded within the 15-24 age group, up from 32.3% in 2010.

The latest Labour Force Survey, issued Monday, shows the annual unemployment rate in 2011 for the 15-25 age bracket at 13.7%, up from 13.1%: of these, unemployment amongst men fell from 14.1% in 2010 to 13.7% in 2011, while women's increased from 11.9% to 13.7%.