Coronavirus: Employer associations welcome government’s latest economic package

Employer associations publicly welcomed the new measures proposed by the government on Tuesday, aimed at tackling the economic situation in the country caused by the COVID-19 outbreak.

Prime Minister Robert Abela had, on Tuesday, announced a new package aimed at helping businesses stay afloat during these trying times, with measures which include paying €800 a month in wages for employees in sectors most affected by the current situation, among other things.

Prior to this announcement, many of the social partners had argued that the government was not doing enough to help businesses, and while welcoming this latest package, a number of employer organisations also highlighted that this does not mean more tweaks or aid would not be needed later, something which the Prime Minister himself had also hinted at.

Chamber of Commerce says revised business support measures reflect its proposals

The Chamber of Commerce said that it was satisfied with the outcome of the consultation process that led to the announcement of the new economic measures, stating that the outcome largely reflects the suggestions it put forward.

The Malta Chamber of Commerce, Enterprise and Industry said that it “lauds the government’s disposition for dialogue which allowed for a successful outcome to materialise. The revised measures are being welcomed within the economic context, and as matters stand today. The measures announced appropriately address the urgent surgical needs of the hardest hit sectors.”

Nevertheless, the Malta Chamber of Commerce said it will continue to follow the situation closely and keep an open channel of communication with the government, as the situation develops further, possibly necessitating further widening of the scheme in terms of duration and scope.

“The Chamber is mindful of the potential needs of another 100,000 workers elsewhere in the private sector or whom support may eventually be also required.”

The Chamber said that it was also among the main proponents in the consultation process for the establishment of a standard minimum benchmark contribution by the employer in order to eliminate misinterpretation. “The Malta Chamber shall also be monitoring the performance of all economic sectors, particularly because of the secondary effects of the crisis which could hit new sectors as we go along.”

Of particular interest to the Chamber of Commerce is manufacturing which, in every economic crisis, is called upon to act as a pillar on which the remainder of the economy can rest. The Malta Chamber has in the past days been vociferous about the need for Government to revisit the mini-budget launched on 18 March, as at the time, this was deemed insufficient to sustain businesses through the expected economic downturn.

“The results of a survey among Malta Chamber members confirmed that the stimulus package needed to be directed more specifically towards more tangible wage support schemes for employers in hard-hit sectors, in order to urgently save jobs and precious resources for local companies. Proactively, The Chamber said it organised a high-powered e-meeting with the participation of 25 national leaders from the worlds of finance, banking, trade, innovation and other spheres that are being directly affected at the moment.”

“The meeting served to evaluate creative and tangible solutions to protect employment and address the economic impasse in Malta (both in the immediate and short term) caused by the effects of

COVID-19. The outcome of this discussion was communicated to the Prime Minister shortly after the conclusion of the meeting. The Chamber shall continue to proactively serve member businesses and their employees in all sectors to ensure they see out this unfortunate predicament with least damage possible.”

Chamber of SMEs welcomes government’s ‘positive response to critical issues’

The Chamber of SMEs also welcomed the government’s new set of economic measures to tackle the negative impact of Coronavirus spread, saying it is a very good first step “that fulfilled part of the request that we presented to the Prime Minister.”

“This should give the necessary lifeline for the coming months for businesses that are desperately in need and will be celebrating the opportunity to be able to retain their workforce.”

The details of the implementation of such a scheme will be essential to ensure that this opportunity will be as accessible as possible, the chamber of SMEs said in a statement following the Prime Minister’s press conference.

During the past week the Malta Chamber of SMEs said it has been in continuous discussions with the Prime Minister insisting that the unemployment benefit should be a basis of an employment benefit across the absolute majority of sectors.

“The reality is that it is the majority of sectors that have suffered a close to complete drop in business overnight. Whilst a number of these sectors have been asked to close their doors, others are still allowed to open with business levels standing at close to none. This is being said in full cognizance of the fact that we already know that there are other sectors and individuals that need help and as an organization we will continue voicing their concerns and making sure that help reaches them. This, because we are aware of the real needs of industry and the importance of keeping businesses functioning to be able to reinvent themselves and be ready to hit the ground running when the economy starts going back to normal.”

The Prime Minister has given the Malta Chamber of SMEs his assurance that the government will be keeping an open channel of dialogue and be responsive to the needs of the private sector, the Chamber of SMEs said.

“At the same time as an organisation we are working on other important measures that require strengthening, that are all important to sustain business in this delicate time. We need greater support from all the banks through general moratoria for both businesses and individuals and revision of interest rates. Other measures include tackling problems associated with rents and other costs part of most businesses’ running costs.”

MHRA says new economic measures ‘renew hope for the future’

The Malta Hotels and Restaurants Association (MHRA) said that it was pleased to note the new wave of measures to mitigate the economic crises being caused by the COVID-19 global pandemic and believes that these will help the tourism and hospitality sector weather the storm.

This followed continuous and persistent representation from MHRA that the grant of €320 towards the cost of wages was simply not enough and had to be reviewed significantly upwards.

MHRA President Tony Zahra asserted that: “We are satisfied that our calls to the government for review have been heard, and that it was ready to go back to the drawing board with us to ensure the welfare of the economy.” The announced measures are the result of long hours of mediation and lobbying with all stakeholders and above all a sense of goodwill by all parties involved, the MHRA said.

Zahra said that, “In such telling times we all must be united and use our collective knowledge, experience and efforts towards one common enemy, called COVID-19. What we are living today is an extraordinary situation, but we must keep in mind that it is a temporary one which definitely will leave a sour mark on all of us. But there is the future to look forward to, which gradually will bring us back to the prosperous years which we have been used to.”

Zahra also said that, “This is not the end yet, and definitely there will be more challenges to face in the coming days and months, however, we are confident that an investment in our tourism industry today will definitely reap fruit when the time comes to relaunch our economy.”

A positive financial aid package – MEA

The Malta Employers’ Association also gave a positive reaction to the measures that were announced.

The Association stated that although the boost in the latest measures address particular sectors of the economy, this is necessary since not all sectors have been, thus far, affected to the same extent, with tourism and related sectors being at a standstill.

“As an association that represents employers in all sectors of the economy, MEA appealed for continuous social dialogue so that there will be sufficient manoeuvrability to re-design the assistance package as necessary to reflect continuous changing circumstances in different sectors.”

The Association said that it will remain committed to provide constant support for its members and interact with the other social partners to have the best outcomes possible in these dire times. It will continue to urge employers to adopt strategies of job retention to keep any redundancies to a minimum.

The package that was announced by the government is the result of consultation with the social partners and is proof that a collective effort is better than unilateral action, MEA said.