No urgent need for COLA reform, says Labour leader

Despite Labour MP Chris Cardona's calls for a reform, Labour leader Joseph Muscat said there is no urgent need to change the cost of living mechanism (COLA) while saying that the party will respect any changes decided by the Malta Council for Economic and Social Development (MCESD).

Speaking during a meeting the Labour Party had with the Malta Employers Association (MEA) on Friday, Musact said: "There is no need to change the COLA mechanism. However if the social partners in MCESD come to an agreement on any changes, we will consider them seriously."

MEA president Joshua Zammit confirmed that MCESD is currently discussing changes to the mechanism.

Despite Muscat's claims that there is no need to modify COLA, in September Labour MP Chris Cardona said: "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."

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

On the other hand, the General Workers Union and Alternattiva Demokratika are calling for COLA adjustments every six months rather than on an annual basis.