Foreign workforce necessary to sustain economic growth - Muscat

Prime Minister Joseph Muscat yesterday stressed the importance of foreign workers as being essential to sustain longterm economic success for the cosmopolitan country he expects Malta to become in the next 10 to 20 years.

Addressing PN Leader Adrian Delia’s comments regarding the influx of foreign workers and their effect on Maltese culture during the triennial general conference of Forum Unions Maltin, Muscat explained that the social security contributions by the foreign workforce are able to provide significant funds to a number of projects, including social housing and the increases in pensions.

During his speech, Delia clarified that he did believe in the importance of foreign workers to the growing economy, but said that the country needed a long-term plan in the face of a growing foreign population.

Muscat told the delegates that he believed that a trade union council should be established, in order to provide a platform for better dialogue between the unions, lamenting that it appeared that on some occasions unions had become competitive and worked against each other’s interests.

Muscat said that the council could also establish ‘rules of engagement’.

Regarding the issue surrounding wages, Muscat said the government was working to analyse how to improve people’s purchasing power, adding that he felt this burden should not go on the employer, but rather the state, who will seek to reduce government induced expenses.

He highlighted three initiatives which will be introduced through legal notices, such as forced leave, payslip information, and the issues surrounding equal pay for equal work.

Delia told the forum that he believed that in order to achieve long-term positive results the three pillars of the workforce (the employees, the employers, and the government) must work with one another.

He highlighted issues with a lack of substantial increase in wages throughout the country, noting that while the country has seen a 7% growth, wages have only gone up by 0.55%, calling for a greater initiative for a better redistribution of wealth. The gender pay gap, he said, must also be addressed.

Quality of living must also be improved, telling the delegates that it is time to stop thinking in terms of the next general election, and begin focusing on a long-term holistic approach.

In his address, FUM President Kevin Bonello spoke to the opposition directly, telling Delia that he believed the opposition was focusing on issues that only affect the party’s core supporters.

“We need a more vociferous opposition that can represent workers,” Bonello said, explaining that while this was no critique of the government itself, issues like the increasing rental market (for both foreigners and locals) needed stronger opposition.

Bonello also addressed concerns about wages and the increase in the property market, saying that young employees new to the workforce are finding it increasingly difficult to get on the property ladder.