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4 NEWS 5.10.2023 THE General Workers' Union has called for continued government sup- port in absorbing the fluctuations in the international price of energy and fuel, in its proposals for the Budget 2024. e first part of the document looks at the state of the economy and the challenges ahead, growth, inflation, na- tional debt, and the need for cautious spending, as well as the fight against tax evasion and the rightful collection of tax dues. e second part focuses on the world of work, in which Bugeja called for at- tention to its quickened evolution and technological advancements, as well as the effects of the COVID-19 pandemic on jobs and work. e GWU is calling for discussions at length on innovation, work-life bal- ance, technological advances, Artificial Intelligence, as well as the legal frame- works, challenges and opportunities, skills and competences, and the sus- tainability of modern jobs. "We need economic growth that its built on fair incomes and jobs that promote inclusion, social protection, equality and social mobility, and that's why we want national employment laws and Works Regulations Orders to be updated, as well as to discuss a new framework for telework and remote working," Bugeja said. e GWU has also called for work on Sundays to be paid at double the hour- ly rate, irrespectively of the economic sector, and that social security contri- butions are calculated from the age of 16 onwards, given that these are not yet factored for those working from age 16 to 18. e GWU also proposed that Treas- ury pensions for the discipline corps also increase annually according to the COLA from 2024, and adjusted ac- cording to collective agreements and the basic salary according to the scale the employee last held on the eve of their retirement. "We are satisfied that the govern- ment has introduced two of our pro- posals – a 23% increase in pensions for members of the disciplined corps who stay beyond the 25-year service, and the 50% of basic salary for four years to those who stay on after 29 years of service. These go together with the five-year pensions for wid- ows of members of the disciplined corps who pass away before their 25- year service, or up until pensionable age," Bugeja added. e GWU is calling for a National Living Income to be placed on the na- tional agenda, together with the sec- ond COLA mechanism, and renewed discussions on minimum wages and low wages. "We find ourselves in a time of great, global uncertainty. e government is facing critical decisions that will deter- mine the way ahead, and this Budget must reflect these priorities, values and our commitment for the general good of society," Bugeja said. Bugeja said that in the face of this ever complex, socio-economic scenar- io, it was crucial that the government achieves a consensus on inclusive growth, social equity, and long-term sustainability. "It is imperative that a strategic eco- nomic vision for the next 20 years is put in place. is requires cooperation between the government, the Oppo- sition, and the social partners, to ad- dress our common challenges togeth- er," Bugeja said. Bugeja also called for investments in the major sectors that can drive job creation and economic growth, namely essential infrastructure, education and research. "But we must also address income inequality, by ensuring a progressive taxation and a social programme that sees the wealth from this economic growth distributed in an equitable way amongst the social strata, ensuring so- cial justice, within an environmental, social and governance framework." Other proposals • Workers on definite contracts that do not get extended get the right to any related vacancy that is created after contract expiry. • A Mental Health First Aider, apart from a First Aider, on the place of work. • Equal pay for equal work; cap- ping of the number of contracted workers on the workplace. • Benefits for continued personal development. • Extension of the tax rate for over- time on allowances, and removal of €10,000 capping. • Childcare facilities and health clinics in industrial zones. • COLA – adjustment on cost-of- living allowances and tax bands so that COLA increase does not get taxed. • Flexible work arrangements. • Performance bonus and commis- sions factored in on national in- surance contributions, and there- fore also for pensionable income. • Occupational insurance for workers in cases of accidents, es- pecially in construction work and other jobs deemed dangerous. • Automatic membership to a trade union of the worker's choice. • Regularisation of work permits. • Grants for the creation of price comparison websites. • National Skills Council to stand- ardise and quantify the experi- ence, skills and competences of workers. • Special sick leave for women who endure loss at childbirth or dur- ing pregnancy. is compassion- ate leave offers support in a time of difficulty and loss, by recognis- ing the emotional and physical effect of a pregnancy on a pro- spective mother. • Addressing past injustices, such as cases involving former em- ployees of the gas board and the former Verdala hotel. • Finding solutions for former Mal- ta Drydocks workers who are still suffering injustice after receiving no resolution from the industrial tribunals in 20 years. • Continuing the compensation scheme for asbestos-related illnesses and deaths. Budget 2024: GWU calls for a strategic economic vision for the next 20 years COLA increase may result in higher shopping bills, employers warn WITH the cost of living adjustment pointing towards an increase of €13 per week, employers warn it can lead to higher shopping bills. Malta Employers' Association Di- rector General Joe Farrugia said some companies will have no other choice but to adjust their consumer pricing to reflect the higher wage bill. "A number of companies will not be affected by COLA expenses; howev- er, other businesses might need to in- corporate the expense into what they charge the customer," he said on TVM's Xtra on Monday. Statutory wage increases are pegged to inflation and despite the government's hefty subsidies on fuel and energy, COLA is still expected to be around €13 per week. Farrugia said business customers could be common people or companies. In the latter case, the rise in prices could travel through the supply chain, risking higher expenses. However, no matter the risks COLA poses, Farrugia did not suggest the re- moval of such a mechanism, which has provided stability and industrial peace over the years. e mechanism was agreed between unions, employers and the government in the 1990s and has helped to ensure yearly wage increases in line with infla- tion. However, the current international scenario has caused inflation to rise ex- traordinarily leading to record COLA increases this year and next. Farrugia agreed with other social part- ners that COLA should not be taxed. "Malta is among the few countries that mandate employers to compensate for the cost of living. Here, I would concur with Josef [Vella from the UHM] that COLA should not be subject to taxa- tion. When taxed, the employer, instead of paying the employee, is essentially returning funds to the government," he said. Originally proposed by the UĦM – Voice of the Workers on Workers' Day, the proposal calls for the government not to tax the COLA increase. "As UĦM, what we are proposing, but the government appears unwill- ing to consider, is not taxing COLA," UĦM CEO Josef Vella said. "COLA is supposed to help workers manage the rising cost of living. Instead, they are getting an extra expense with their aid." He explained that the €13 per week po- tentially given to workers next January would be spent entirely by the workers, eventually strengthening the economy. General Workers Union's Josef Buge- ja and Chamber of Commerce CEO Marthese Portelli, also present on the Xtra panel, agreed that COLA should not be taxed. e social partners also agreed that this is not the time to revise the COLA mechanism. "In the past, I was one to call for the mechanism to be revised, but this is not the time for revisions," Josef Vella said. Malta Employers' Association Director General Joe Farrugia

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