[WATCH] Prime Minister encourages unions to take up minimum wage debate

Cabinet discusses Caritas report on decent living

The debate on increasing the minimum wage should be taken up by all stakeholders, including the unions, Prime Minister Joseph Muscat said.

Presiding over a Cabinet meeting during which a study by Caritas, ‘A minimum essential budget for a decent living’, was discussed, Muscat said that the government was prepared to discuss the issue.

“Our policy was always one of generating economic growth which in turn would help us look out for the most vulnerable,” the Prime Minister told Caritas Malta executive director, Leonid McKay.

Call for an increase in the minimum wage have been coming from different quarters, but always found the objection of the employers who were supported by politicians. Different political leaders, with the exception of Alternattiva Demokratika, have in the past argued that increasing minimum wage would “negatively affect” the country’s productivity.

Caritas has now put forward a proposal so that the minimum wage is increased over a number of years.

Muscat described the study as an important benchmark for government’s work. Reiterating that government measures aimed at encouraging more people to join the workforce and the reduction in energy bills have helped low-wage earners.

He however agreed with comments by President Marie-Louise Coleiro Preca that not every person who did not work did so willingly.

“There are realities which we cannot ignore, including persons who can’t work due to health issues,” Muscat said. He went on to add persons with disability on benefits, and who cannot work, should receive an allowance matching the minimum wage.

The Prime Minister however warned that increasing the minimum wage would not impact all persons in poverty: more often than not, those who live in severe material deprivation are unemployed.

As recommended by Caritas, the government admitted that a discussion was also needed on social housing and its availability.

On his part, McKay welcomed the government’s decision to place the Caritas study high on its agenda and that poverty was being discussed at a high level.

The meeting continued in private.