[WATCH] Political leaders hail minimum wage increase agreement

Workers' representatives welcome national agreement on minimum wage

Prime Minister Joseph Muscat has hailed an agreement signed this afternoon that will see the minimum wage increase by €8 a week by 2019, saying that until recently it was “unthinkable” for social partners to come to it.

The agreement was the result of months of talks involving trade unions and other members of the Malta Council for Economic and Social Development (MCESD). 

Chairman John Bencini said that the MCESD had started to discuss an increase in the minimum wage after the Prime Minister asked for it to be put on the agenda.

He said that over 20 meetings had been held in order to ensure that any agreement does not negatively impact the country's economic competitiveness.

"It would have been easy for us to randomly select a number or not to reach an agreement," he said, adding that the MCESD is a "serious and competent authority and that the intention was for an agreement to be texted that was based on sound studies.

"Our interest is the common good not the niche area of each partner," he said.

"It is of great satisfaction to see the government and opposition work hand in hand on matters that are for the good of all," he continued. "This is what the nation wants to see more of."

Muscat said he was proud that a "broad consensus" had been reached to help those earning the least in society, describing the agreement as a win for maturity and common sense.

"Up until recently it was unthinkable that social partners could arrive at an agreement on a minimum wage increase ," he said, adding that it was perceived as being an "out of bounds" subject.

Muscat said he was convinced form the start that the first step needed to be economic growth.

"To talk about wealth distribution you must first create it," he said, insisting that attempting an increase prematurely could have had the opposite effect.

He pointed to unprecedented economic growth, which he said leads to more businesses being more successful and people having more money to spend.

"We have already reached our 2020 employment goals and we have halved the number of people in poverty."

He said that all of this was done while registering a surplus.

Moreover, Muscat said the government would continue adjusting tax bands to make sure that those benefitting from the increase are still not taxed.

The Prime Minister also expressed his satisfaction at the introduction of a new mechanism that will see the minimum wage increased every four years. 

"We will no longer need campaigns," he said.

Opposition leader Simon Busuttil congratulated MCESD, adding that the agreement "was an example to everyone of how things should be done."

He said that, as promised, the Opposition was behind the agreement seeing as all the social partners were in favour of the proposal.

Busuttil stressed that the situation with wages needed attention since a number of workers under collective agreements are not seeing their wage increase enough to match cost of living.

"The question is whether this agreement is enough," he said. "There is more to be done to ensure that wages reflect the work and effort workers put in."

"It is not enough to generate wealth but we must ensure that it is distributed fairly," he added.

He said that while the agreement is a good first step, it should serve as a stepping stone for further improvements, eventually resulting in a decent wage and quality of life for all.