Minimum wage campaign hits the road

The Campaign for Decent Minimum Wage today launched its Decent Wages Tour at the tour’s first stop – Valletta.

Organisations and individuals from 16 NGOs involved in the campaign will be visiting several localities and workplaces around Malta to explain and discuss their proposal for a raise in the minimum wage – an 11% increase spread over three years, through a 3.5% increase per year. Through this proposal, people who are presently on the minimum wage will be receiving, in three years’ time, an additional €80 monthly over and above COLA increases.

Malta is one of only four EU countries where the value of the minimum wage in the context of price changes has decreased over the past seven years.

According to Eurofund calculations, Malta is one of only four EU countries where the value of the minimum wage taken in the context of changing price levels, has decreased over the past seven years. Eurostat figures released in February 2017 also show Malta is one of seven countries with a minimum wage that is less than 50% of the country’s median income.

Charles Miceli from Alleanza Kontra l-Faqar told reporters he hoped to see wages, which had decreased due to inflation and a rise in rentals in the last few years.

The raising of the minimum wage would not have a ripple effect on the economy, they said, because it would not affect higher salary brackets.

“Some have claimed an increase in the minimum wage will create upward pressure on other wages, something the economy cannot sustain. A raise in the minimum wage will create pressure on other low wages to increase. We consider this as a necessary and desirable effect of raising the minimum wage since many people are working on low wages that are only slightly higher than the minimum wage,” the NGOs said in a statement.

But the €80 increase on the minimum wage won’t create upward pressure in high income brackets, constituting only an extremely small percentage of a high wage.

The organisations also called on the government to review the Wage Regulations Order, which sets minimum wages in different sectors, so that any potential increase happens in a controlled manner.

The speakers stressed that their proposals are aimed at helping the “working poor” not eradicating poverty. Economic growth and record numbers of people in employment had given Malta an opportunity to increase the minimum wage, they said.

However, this increase should not be in the form of an allowance or benefit as this would not be reflected in pensions, they said. “The scheme should be subsidised by those who are reaping profits, not the government,” added Graffiti representative Erica Schembri.

“Arguments stating that the Maltese economy cannot sustain such a minimal increase in the minimum wage contrast sharply with assertions about Malta’s strong economic performance. A truly strong economy won’t face major challenges because of an increase in its very low statutory minimum wage.”

The NGOs said that raising minimum wage would allow a decrease in worker turnover and more circulation of money in the economy. “Our proposal includes suggestions about fiscal measures and government interventions that would help those enterprises that might struggle if the minimum wage is increased.”

 “This small increase won’t make the minimum wage a fair wage. However it will be an important step towards more fairness,” the NGOs said.

The participating organisations: Aditus Foundation, Alleanza Kontra l-Faqar, Caritas, Forum Bomliz, Integra Foundation, Kooperattie Kummerc Gust, Malta Humanist Association, Malta Microfinance, Mid-Dlam ghad-Dawl, Millenium Chapel, Moviment Graffiti, Paulo Freire Institute, Peace Lab, The Critical Institute, Third World Group and Zminijietna - Voice of the Left, have also launched a website detailing their proposals - www.pagaminima.org