BusinessToday Previous Editions

BUSINESSTODAY 23 April 2020

Issue link: https://maltatoday.uberflip.com/i/1238664

Contents of this Issue

Navigation

Page 1 of 11

23.04.2020 2 NEWS FROM PAGE 1 NSO statistics published ear- lier this week indicated that the number of people registering for work increased by 353 in March. e number of people registering for work with Job- splus, a government agency, stood at 2,125 last month, an increase of 20% over the previ- ous year. "I think the March figures clearly show that many com- panies are making big efforts to keep their workers, even though economic activity is down," he said. Farrugia said that the gov- ernment should recognise the importance of keeping unem- ployment low, since this would ensure a quicker recovery once the situation start to normalise. He said that, following the government's first phase of economic aid measures, a sec- ond phase should be put in place to assist workers in more sectors. "In Phase 2, the government has to see how its benefits can be pushed to reach more sec- tors. Such economic measures ultimately help employees," he said. e more help the govern- ment provided, the less dam- age would be caused to the economy, he said. "It is true that some sectors, such as tourism, will keep feel- ing the effects for a considera- ble period after the pandemic passes. But other sectors would be able to move forward quick- er if assistance is given now," Farrugia added. MEA proposals In a statement earlier, the MEA said that despite some optimistic figures regarding the number of new cases of Covid-19, many businesses ex- pected the negative effects of the virus outbreak to extend for months, if not more in some sectors. e classification of com- panies by NACE codes in two groups has worked as an immediate measure, yet nu- merous companies that fall in Appendix B category have also had their operations at a standstill, perhaps even more so than others who are eligible for the benefits offered to those falling under Appendix A. "ere are also many cases of companies which do not fall under any Appendix who are paying their employees from their own resources. ey cannot do so indefinitely," the MEA said. e Association is appeal- ing for a re-thinking of the schemes and, at this stage, to adopt a more case by case ap- proach to further mitigate the impact of the economic crisis on businesses and families. It proposed a number of measures: • Utility rates for both busi- nesses and households should be reviewed with immediate effect. e in- ternational price of oil – at less than $5 a barrel - is the lowest in decades, and this is certainly not reflected in the current rates, at a time when many households are consuming more energy because they are spending more time at home. • Training grants should be more flexible and enhanced. e 21-day notification for application acceptance needs to be shortened for companies to be more mo- tivated to train their people. Specific grants for online training can be introduced. • Wage supplements should be extended to cover more employees and sectors. In some cases, there is an anomaly whereby employ- ees are applying pressure on their employer to be made redundant since the unemployment benefit ex- ceeds the supplement they will get if they remain in employment. • Rents for factories facing difficulties should be tem- porarily waived. • Salaries of employees in the public sector who are idle should be reduced. On the other hand, a special bonus should be awarded to em- ployees in the health sec- tor for the excellent service they are delivering. GWU lambasts call for pay cut for idle public servants e General Workers' Union has voiced its disagreement with the Malta Employers' As- sociation's call for salary cuts for idle public servants. "Workers in public service as well as the public sector are working hard in various areas having to carry out their own sacrifices for the public's well- being," the GWU said. e union also pointed out that a number of workers are having to live and reside at ho- tels and apartments away from their families in order to pro- vide services to society. e GWU also pointed out that various workers in public service have not stopped work- ing, with the union saying that for some hours have actually increase due to teleworking. "e GWU believes gov- ernment workers should be praised for their continual work, not unjustifiably pun- ished," the union said. In a statement, MEA reit- erated that its proposal was targeted at idle public-sector workers not all public-sector employees. "MEA reiterated that its proposal was targeted at idle public-sector workers not all public-sector employees," a statement read. e association stood by its principle, that workers who have no work available, cannot be privileged and expect a full pay including allowances for giving nothing in return, while others in the private sector in a similar situation suffer from reduced income or face redun- dancy. MEA says more focused action needed to help busineses survive COVID-19 crisis • GWU lambasts call for pay cut for idle public servants KURT SANSONE UTILITY bills for households should be halved and meter rental charges for retail outlets that have been forced to shut should be reduced, the Nationalist Party said. Energy spokesperson Ryan Callus said the government should step in and cut water and electricity bills at a time when people are experiencing a loss of income. Callus said people were being "robbed" €91 million annually as a result of the country's energy set up negotiated by the government that relied on an 18- year contract to buy electricity from Electrogas. He said the price of gas had dropped but the Maltese were still paying the same tariffs. Asked whether the PN was suggesting the government pull out of its contrac- tual obligations in the energy sector rather than introduce a voucher system to allay the current burden, Callus said it was government that had to find a way of getting out of the "mess" it cre- ated with the "corrupt Electrogas deal". "Anything that needs to be done for the national interest to prevail must be done but people need immediate relief in their utility bills," he insisted. He insisted the government energy policy should prioritise renewable ener- gy, followed by the purchase of electric- ity from the interconnector, the BWSC plant and the Electrogas power station respectively, to ensure the lowest prices on the market. PN MP Claudette Buttiġieġ also urged the government to increase the eco-contribution threshold because people will be surpassing this as a result of the health advice they are being given to stay at home. PN MP Hermann Schiavone said the meter charges for outlets that are closed but still have to leave freezers and fridg- es on, such as bars and restaurants, should be reduced. e PN also called for the price of pet- rol and diesel to be reduced, given the international crash in the price of oil. Water and electricity bills should be halved immediately, PN insists

Articles in this issue

Archives of this issue

view archives of BusinessToday Previous Editions - BUSINESSTODAY 23 April 2020