Issue link: https://maltatoday.uberflip.com/i/1097044
11 OFFICIAL statistics show that Malta was the only EU coun- try to experience a contraction in wages during 2018. Indeed, Malta's decrease was of -0.5 per cent, when the annual growth rate at an EU level was almost 3 per cent. Romania, Latvia, Por- tugal and Lithuania recorded double digit hourly labour cost growth rates. Malta's hourly labour cost drop featured in the private sector, in construction and services respectively. Ans while the public sector and industry experienced small increases, Malta's inflation rate is overshadowing this. Indeed official figures for February 2019 show the high- est increases since January 2017. Inflation during Febru- ary read 1.92 per cent, putting greater hardships on fami- lies, workers, pensioners and youth on basic expenditure on items such as food, medici- nal products, health services, transport, home maintenance and rent. A few months ago, Presi- dent Marie-Louise Coleiro highlighted the plight of such people when she referred to a study by the National Obser- vatory for Living With Dig- nity and the National Centre for Family Research, both of which are research entities within her Foundation for the Well-being of Society. The study shows that four- person families in Malta have to spend more than €500 a month for healthy food. This is too high for many families, especially when one consid- ers other expenditure such as that referred to above in com- parison to Malta's wages. The math is clear. Malta is now witnessing so- cial challenges that had been a thing of the past: For ex- ample persons in the 25-35 age bracket who keep living with their parents not out of choice but because the cost of housing is simply too high. The importation of workers for cheap labour is also result- ing in a race to the bottom be- tween workers at the expense of their quality of life. It is becoming clearer that Malta's fast economic growth is coming at the expense of social justice and the environ- ment. True, there are winners in this model, but it is also true that many are losing out: The working poor and the downwardly mobile who are playing by the rules but losing the game. It is about time that the gov- ernment gives serious consid- eration to the proposals by trade unions, economists and sociologists for a realistic and sustainable revision of Mal- ta's Cost of Living Allowance (COLA). Its current measure- ment seems out of synch with the realities faced by workers and pensioners, resulting in negligible compensation for higher prices of goods and services. Government should also seriously look into the creation of refunds or dis- counts for elderly persons and low income earners for basic goods and services such as utility bills. As a candidate for the Eu- ropean Parliament I am also proposing that the EU budget should be more flexible for the needs of small islands, which, for example, are more susceptible to the inflationary pressure due to high import content. Economic reforms pushed by the European Commission should be monitored at mem- ber state level, where civil society should play an active role for sustainable and so- cially just reforms. Malta requires an economic vision that does not simply look at GDP growth rates but that also factors in people's quality of life. The social and the environmental should not be sacrificed for the benefit of an unequal and unsustainable economic vision. maltatoday | WEDNESDAY • 27 MARCH 2019 Worrying wage drops It is about time that the government gives serious consideration to the proposals by trade unions, economists and sociologists for a realistic and sustainable revision of Malta's Cost of Living Allowance Dr Michael Briguglio is an MEP Candidate for Partit Nazzjonalista OPINION Michael Briguglio www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way 'Malta's fast economic growth is coming at the expense of social justice and the environment'