Memorandum to political parties

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A more wholesome definition of consultation in the MCESD Act would help to render the mechanism of social dialogue much more effective. This is essential to ensure that members of the MCESD are not merely informed of what is happening, but they are genuinely involved in the decision-making process. Furthermore, it may be time to consider putting the MCESD on a Constitutional basis to give it a more secure basis and enhance autonomous social dialogue as encouraged by the European Commission.

The involvement of the Employment Relations Board (ERB) in the appointment of chairpersons to the industrial tribunal has enhanced the profile of this tripartite institution of social dialogue. The Board may set some standards by drawing some objective criteria for the appointment of these chairpersons. This will further enhance the image of the ERB and at the same time offer a higher level of legitimacy to the appointees.

4. Gender Issues in the Labour Market

Gender equality between women and men in Malta remains elusive on many fronts, and it is evident that the achievement of gender equality has not been given sufficient attention in recent years. Sexism in Malta is still rife and significant gender gaps are noted in employment, power, time and income.

As a result, Malta continued to slip in rankings. For example in the Gender Equality Index (2016) issued by the World Economic Forum our country was ranked 108 out of 144 countries. Likewise, it scored badly (46.8 out of 100) in the Gender Equality Index (2015) developed by the European Institute for Gender Equality (EIGE) of the European Union. The EIGE’s index measures equality between women and men in six key domains, namely: work, money, knowledge, time, power and health by assigning a score to each member state 1 for total inequality and 100 for complete equality. With a score of 46.8 Malta has not yet reached the halfway mark towards equality between women and men.

Notwithstanding a large employment gender gap of over 25 percentage points between Maltese men (79%) and women (53.6%) (NSO, 2016), the EIGE index (2015) shows signs of positive developments over time with an increase in the level of women engaged in fulltime employment. In spite of this increase, the overall female employment rate at 53.6%, places Malta towards the bottom end of the EU 28 employment table (Eurostat, 2016). Nearly a quarter of Maltese women (24.6%) state that they are unable to work due to personal and family responsibility (NSO, LFS Q.3, 2016). The number of Maltese men who are unable to work for the same reasons is negligible (less than 20 men in total).

The EIGE equality index (2015) notes, that one of the most serious challenges for gender equality in Malta is the unequal division of time spent by women and men on unpaid work in relation to care, domestic tasks and chores and in relation to social activities. This suggests that measures must be taken to further challenge traditional gendered stereotypes about women and men’s roles in the family and at work and to ensure that caring is more equally shared between the spouses. Furthermore, more work-life measures, such as flexible working arrangements and more generous paid family leave entitlements, are needed to ensure that women and men can have their ideal family and at the same time be able to earn a decent living.

For many years, Malta has had one of the lowest gender pay gaps among the EU states. However, in the last quarter of 2016 there was a considerable increase of 6.1 percentage points in the Gender Pay Gap. This rose from 4.5% to 10.6% (Eurostat, 2016). While this is still below the EU average of 16.1%, this increase suggests that there is no room for complacency about this issue.

Malta scores especially badly (28.2 out of 100 in the EIGE index) in the area of decision-making position in politics and in the world of business. Among the Board members of the listed Maltese companies, only 5% are women while in the EU the average is 23.3%. In the last six years (2010-2016) there was a negligible increase of 2.7% of women on such Boards (Fact Sheet European Commission, 2016). Likewise, when it comes to government boards, the improvement was negligible with an increase of 2.45% between 2013 and 2014. To make matters worse, the occupancy of women in high positions (like CEOs) in the top 20 largest government corporations and agencies, actually decreased from 29% in 2012 to 16% in 2014. Unfortunately, efforts to obtain updated data from the National Commission for the Promotion of Equality (NCPE) and from the National Statistics Office (NSO) have so far been unsuccessful (Personal Communication, 2017).

In the light of the current state of affairs, the Maltese government needs to show stronger commitment towards gender equality by:

Publishing a clear and coherent national gender equality plan to address the main gender gaps. The plan must be well funded and well executed through an independent set-up which is free from government influence.

Pushing for more temporal and spatial flexibility to allow better work-life integration and a better quality of life especially for working parents.

Addressing the issue of the increasing gender pay gap on many fronts.

Ensuring that traditional gender roles are challenged in schools and institutes of learning and through national campaigns.

Devising ways and strategies to ensure that there is not only equality of rights between women and men, but also equality of burdens when it comes to unpaid and paid work.

Ensuring that government boards are more gender balanced and providing incentives to private companies to do likewise.

5. Safety, health and wellbeing at work

The limited resources available to the Occupational Health and Safety Authority (OHSA) have been highlighted in reports conducted by both the National Audit Office (NAO) (NAO, 2016) and the Senior Labour Inspectors Committee (SLIC) (OHSA, 2016). Both reports commended the Authority for its educational efforts but noted that its current complement of inspec- tors made it impossible for the Authority to cover the full range of duties expected of a national enforcement entity. In view of the OHSA’s important function in “ensuring that the physical, psychological and social well-being of all workers in all work places are promoted and to ensure that they are safeguarded by whoever is so obliged to do” (OHSA Act, Chapter 424 of the Laws of Malta), it is being recommended that:

The OHSA is provided with the necessary human resources to effectively regulate health and safety in Malta.

The rate of occupational accidents has fallen substantially over the last few years, while the sixth European Working Conditions Survey (Eurofound, 2015) reported that the quality of Maltese physical environments has increased steadily over the last 10 years. Psychological complaints however, have until recently received little attention. In Eurofound’s (2015) “work intensity index”, which measures the level of work demands in a job, only Greece and Cyprus scored higher than Malta. Additionally, while the European Survey of Enterprises on New and Emerging Risks (ESENER) (EU-OSHA, 2016) highlighted some positive changes that have been implemented in Malta with respect to tackling psychosocial risks, it also reported that Malta rated last of the EU-28 in establishments “having sufficient information on how to include psychosocial risks in risk assessments”. The OHSA and the Richmond Foundation have organised a number of seminars on the topic; while a Framework for the control of work-related stress has also been launched. Despite this, the lack of awareness of how to tailor risk assessments to such issues is alarming and the implementation of the Framework by social partners has been poor. The CLS thus recommends:

Ensuring that psychosocial risk factors are given the same importance as physical risk factors. This should be reflected in the work of the labour inspectorate and in the frequency of interventions designed to educate employers and human resource personnel on how to assess and control psychosocial hazards.

6. An older workforce

Increased longevity and reduced fertility rates have resulted in accelerated population ageing. Additionally, Malta has one of the lowest employment rates for older workers (aged 55-64) in the European Union, but is expected to see among the largest increase in older individuals in the workforce (Eurofound, 2012). Age-related changes impact upon individuals’ ability to work, as well as their predisposition to experience health conditions. In view of these changes, work should be adapted to the abilities of older workers, health and safety interventions should consider age-related changes, while return-to-work programmes should be established to support workers following periods of absenteeism (both younger and older workers).

The National Strategic Policy for Active Ageing, set up in 2014, can provide the ideal tools and instruments to encourage older workers to remain economically active and/or stimulate their re-entry in the labour market. Instead of externalization of older workers, the political target today is their continued integration. The results of the sixth European Working Conditions Survey (Eurofound, 2015) however, indicated that Maltese participants scored lower than the EU-28 average on both the ‘selfreported ability to work until the age of 60 by respondents aged 55 and under’, as well as the ‘selfreported ability to work in five years’ time by respondents aged 56 and over’. Additionally, a Eurobarometer report (European Commission, 2012) highlighted that the Maltese cohort felt that they could continue in their current job until the age of 57.3, which was not only lower than the EU average of 61.7, but was the lowest age in the European Union. These findings suggest that more needs to be done to adapt work tasks and workplaces to the capacities of older workers. It is thus suggested that: • Awareness campaigns need to be organised which specifically educate employers and human resource personnel on how to adapt work tasks and workplaces to the needs of older workers. • Government should lead by example by tailoring the organisation of work, work places and work tasks to the needs of older public employees. Furthermore, health promotion initiatives which specifically tackle the needs of older employees should be implemented. Additionally, while Malta has dedicated rehabilitation centres and services, no specific ‘return to work’ programme appears to exist for workers who have sustained an occupational injury or who have engaged in extended periods of absenteeism (EU-OSHA, 2016). While this is relevant to all workers, it will become increasingly relevant as the labour force ages. The CLS thus recommends: • Establishing an official return to work programme for workers who are absent from work and who are experiencing health issues. This programme should incorporate both worker rehabilitation and the provision of tailored advice to employers and human resource personnel regarding the modifications necessary at work to accommodate such workers.

7. Career Guidance

The Maltese economy is expanding and evolving at a considerable pace. New jobs are being created especially in emerging sectors, replacing jobs in the labour intensive industries. The mismatch between the labour market demand and the available human resources is widening, forcing more employers especially in the tourism, iGaming and healthcare sectors, to resort to the recruitment of foreign workers as they are not finding sufficiently trained and motivated Maltese workers. Government is searching for solutions to this grow- ing problem, by encouraging more women to join the gainful employed workforce, by striving to reduce early school dropouts, facilitating the attainment of higher qualifications and tackling the long-term unemployed through various active labour employment schemes. The situation calls for a stronger investment in career services, which may play a larger role in containing the growing tensions in the labour market. However, more attention needs to be directed towards this field. While career guidance services have existed in Malta for several decades and have, by and large, produced valuable work in this field, the sector remains greatly fragmented. Workers in the field have different qualifications, skills and abilities and working conditions. The services offered vary in quality and are not always monitored. The links between career practitioners within state schools and Jobsplus are weak. Moreover, these practitioners have different working conditions and realities, despite working within the same ministry. Whereas proper career education and guidance should be based on up-to-date labour market and educational intelligence, career practitioners in Malta rely on inadequate information which is not only scarce, but is also inadequately tailored to their needs and hardly focuses on future skills needs.

As the career guidance sector is by nature a relatively small one, it cannot be market-driven and requires a stronger government intervention to mature and become more effective. A stronger commitment needs to be shown towards career guidance by: • Having one coherent vision for career guidance, expressed through a lifelong career guidance and development policy and strategy. While government has acknowledged and expressed the need to strengthen career services in several educational and employment policies, there has not been a unified approach to address this need. Establishing an institution that would serve as a focal point for career services in Malta. It would ensure that high quality standards are reached and maintained by all career services in the public and private sectors, and would provide up-to-date and relevant career-related intelligence to practitioners and clients. Besides, it would ensure greater cooperation among the various stakeholders. Such an institution could be set up to maintain a comprehensive and up-to-date career guidance website. • Assisting the Malta Career Guidance Association (MCGA) in its efforts to enhance the professionalisation of career practitioners. The delivery of career service would be greatly improved if the career guidance occupation is enshrined in law and practitioners are required to obtain a warrant in order to operate in this field. At the moment, many practitioners do not have any formal qualifications in the field. • Showing a real commitment towards the field by giving access to scholarships to persons who wish to further their qualifications and skills in career guidance. It is to be noted that Malta Enterprise does not acknowledge career guidance as a field required by industry. Besides, only one career guidance student at the University of Malta has been awarded an Endeavour scholarship scheme.

cooperatives and establish policies, laws and rules conducive to cooperative formation and growth. The precept governing their actions and decisions should be that communal values are relevant and valid in every economic system.

10. The Digital Economy and the Maltese Labour Market

As we move forward, the growing pains of rapid change become evident as the pressing technological challenges will be with us for some time to come. The appetite for innovation and technological advance will not abate.

The forecasts may well be somewhat off the mark, but the threat remains real. Through the digitalisation of work, an increasing number of complex tasks are likely to be taken over and performed by robots and computerised devices. Ongoing digitalisation should spur policy makers to embark on longterm strategies that strike a balance between the optimists who foresee limitless new opportunities and the pessimists who foresee massive redundancies and dislocation of jobs.

The latter may point out to the “platforms” which have been set up in the gig economy. Through the anonymous nature of their commercial transactions, these digital “platforms” circumvent the standardised labour laws that offer protection, regularity, tenure and other worker rights. An apt example of this atypical work is the “anytime, anywhere” principle introduced by Uber in the carsharing service industry. The fine line between independent contracted worker and employee being created by this type of work has once more brought to the fore the issue of bogus self-employment. A new typology of unprotected, atypical workers has thus been created. This underprivileged class of workers provides services under a considerable level of dependence but is still unable to enjoy the protection afforded to standard employees. In spite of their apparent independence, these workers remain beholden to the operations and procedural rules of an enterprise and, like employees, they are still in need of social protection.

In Malta, signs of this Uber form of work are still emerging. The provisions in the Maltese labour law, through L.N 44 of 2012, provide criteria to differentiate selfemployment from employment. Given the new scenario in the labour market brought about by digitalisation, the law might need fine-tuning to remove the possibility of any grey area between workers on a contract of work and those who may appear to be independent, own account workers. In politics, it is better to be too early than being too late.

Conclusion

We urge all the political parties contesting the next general election to take note of these proposals and recommendations and to consider incorporating them in their electoral programme.

A summary of the main proposals and recommendations made in this memorandum are the following:

Decent Work

Draw up a decent work agenda aimed at providing a “decent work” checklist in order to combat precarious work.

Continue to fine-tune the provisions in the law related to selfemployment to remove the possibility of any grey area between workers on contract and the apparent independent contract workers.

Continue to strengthen the employment protection legislation so that it can foster investment in human capital and innovation.

Wage Policy

Set up a low wage advisory committee within MCESD to monitor the situation of employees on low pay.

Peg the minimum wage to the average wage.

Social Dialogue

Define more comprehensively the term “consultation” in the MCESD Act, in order to make the mechanism of social dialogue more meaningful and effective.

Set objective criteria for the appointment of Industrial Tribunal chairpersons.

Gender Issues

Devise a clear coherent national gender equality plan aimed at addressing the main gender gaps.

Push for more temporal and spatial flexibility to allow better worklife integration.

Ensure that government boards are more gender balanced and provide incentives to private companies to do likewise.

Safety, Health and Well-being at Work

Provide the necessary resources to the OHSA to enable it to regulate more effectively health and safety at work.

Older Workers

Tailor the organisation of work, work places and work tasks to the needs of older employees and implement health promotion initiatives which specifically address the needs of older employees.

Design an official return to work programme for absent workers who are experiencing physical and psychological health problems.

Ensure that psychological risk factors are given the same priority of physical hazards.

Career Guidance

Adopt a unified approach towards a coherent vision for career guidance, expressed through a lifelong career guidance policy and strategy.

Establish an institution that would serve as a focal point for career services in Malta.

Assist the Malta Career Guidance Association in its efforts to enhance the professionalism of career practitioners.

Innovative Employment Relations

Build a support structure for Employee Financial Participation scheme in the form of a legal framework that may spur the social partners to venture in this innovative employment relation.

Cooperatives

Create a more supportive environment for the development of cooperatives and establish policies, laws and rules conducive to cooperative formation and social development.