‘Minimum wage increase cannot happen on its own’ – social partners

A rise in minimum wage ought to be accompanied by other measures it is meant to be “a true catalyst of change”, social partners have said.

The Malta Council for Economic and Social Development (MCESD) met this afternoon to discuss the Caritas research study entitled “A Minimum Essential Budget for a Decent Living”.

The report recommended an increase in the minimum wage as one of the measures to ensure better social justice and to fight the rising rates of poverty in the country.

“The report clearly shows that social justice had become a troubling issue in the local context,” Confederation of Malta Trade Union president Martin Balzan told MaltaToday.

“In a context where economic growth is impressive, it has become unacceptable that the benefits of this economic strength are not trickling down to all the sectors of society, with those at risk of poverty or actually living in poverty, gleaning the least advantages from it.”

Balzan added that the social partners had all agreed that swift action was necessary to tackle these injustices, but he added that the issue of whether or not to increase the minimum wage had not been discussed in detail druing today’s meeting.

“I think, however, that it is not a solution on its own, but it requires to go hand in hand with other decisions that can contribute to better social justice and encourage economic growth and competitiveness as well as more employment,” Balzan said.

His comments were echoed by Union Haddiema Maghqudin director Jesmond Bonello who explained that the study, which showed consistency with its 2008 predecessor, had shown the importance and necessity for more frequent studies of the kind, as well as added data from the NSO, to ensure that workers live a more decent life.

“We too believe that the minimum wage should go up, but that accompanying measures should include education, social development and benefits that can assist to stave off poverty,” Bonello said.

General Workers Union general secretary Josef Bugeja also commented on the timeliness of the report, and added that it should act as a reminder for civil society of its duties towards ensuring a more just society.

“Such a discussion should include the minimum wage, but it is only a small part of the measures necessary,” he said, reiterating the Union’s position in favour of a rise in the minimum wage.

“Some people are not keeping up with the expenses in their lives, and we need to increase the income of these families accordingly,” he said adding that more statistics were necessary to be able to continue discussing ways to give these individuals a more decent living.

Bugeja added that the GWU believed measures like the already implemented drops in energy tariffs were necessary alongside the increase in the minimum wage.

GRTU president Paul Abela stressed that further data and studies by financial experts were necessary to decide whether a rise in the minimum wage would be beneficial and indeed feasible to the local economy.

“A rise in the minimum wage will ultimately mean a rise in all sectors, “ he said, adding that the focus should be ensuring a decent living for all in a holistic way.

“We need to give priority to those at risk of poverty particularly the elderly, where issues become more pronounced, and we have a duty to ensure that the situation is better for them.”

According to Abela, the MCESD would work hard to create adequate proposals to pass on to the government and ensure that responsibilities and commitments are taken and accepted both by the government and the opposition.