Labour MPs insist party will not remove COLA

In the second press conference in 24 hours on the minimum wage saga , Labour MP Chris Cardona condemned the Nationalist party's lies and reiterated the party's "duty" to set the record straight and refute the PN's lies on the minimum wage.

"As long as the Nationalist Party keeps on lying about our position on the minimum wage, we will serenely answer back and set the record straight," Cardona said.

He said the PN's campaign of lies is not harming Labour but is causing great damage to the country's economy and staving off investment.

Yesterday, Cardona said Labour "will consider increasing minimum wage in a more positive economic climate."

In recent weeks, Muscat has declared he will not raise minimum wage over and above the annual cost of living adjustment, and has filed a libel suit against the prime minister over claims he was advocating a freeze on minimum wage, akin to the 1983 general wage freeze.

Yesterday, the two parties engaged in a war of words over claims made by Labour MP Owen Bonnici and finance minister Tonio Fenech.

After publishing a clip from 2010, in which Fenech is heard saying that an increase in the minimum wage would create more problems then it solves because it would put jobs at risk, the PN retorted by airing a radio recording of Labour MP Owen Bonnici saying all salaries and the minimum wage could not be increased until favourable economic conditions allow such increases.

Fenech went as far as saying that a new Labour government will remove the cost of living adjustment (Cola) mechanism and all wages will be frozen.

Today, Owen Bonnici addressed the press and said:"The Nationalist Party is trying to manipulate the truth and we are here to disprove these false claims."

The Zejtun MP stressed that "it is not true that Cola will be removed." He added that any other increases "over and above Cola, will be considered when the economy is back on a sound footing."

Echoing the finance minister's claims from 2010, Bonnici insisted that "in the current situation employers do not afford such increases."

 "If both parties share the same position on minimum wage increases then why is the PN resorting to such lies?" the MP asked.

Asked what kind of benchmark a new Labour government will use to measure whether the economy is "healed," Bonnici said "more then anything else we need to install a sense of security in the economy and secure growth."

Without committing himself to a benchmark, Bonnici said "We will not set a straight jacket, but the aim is economic growth as was discussed in the labour Party's national congress."

The Labour MPs also refused to divulge the party's position on the current discussions going on at the Malta Council for Economic and Social Development, where a number of organisations are calling for a change in the Cola mechanism.

Employers and business representatives are calling to change the way the cost of living mechanism is worked out because the current Cola formula was one of the main issues hindering competitiveness.

"Labour is not the only entity asking for a change in the mechanism. We have discussed this with all social partners and we have also tabled our proposals which we will divulge at the opportune moment," Cardona said.

Meanwhile, the PN issued a statement insisting that Labour has faled to deny that it will be "freezing" the minimum wage and said: "Muscat's politics to freeze the minimum wage and other wages poses a danger to everyone."