Issue link: https://maltatoday.uberflip.com/i/744537
2 maltatoday, SUNDAY, 30 OCTOBER 2016 News NGOs demand rise in minimum wage PAUL COCKS THE minimum wage should go up by 3.5% for three consecutive years – to between €11,000 and €12,000 a year – in addition to the cost of living adjustment, ac- cording to a number of organisa- tions who have come together to launch the Campaign for a Decent Minimum Wage. The campaign was launched on Saturday by Aditus Foundation, Alleanza Kontra l-Faqar, Caritas, Forum Bormliz, Integra Founda- tion, Koperattiva Kummerc Gust, Malta Humanist Association, Malta Microfinance, Mid-Dlam Ghad-Dawl, Millennium Chapel, Moviment Graffitti, Paulo Freire Institute, Peace Lab, The Critical Institute, Third World Group and Zminijietna - Voice of the Left. The organisations said raising the minimum wage would be an act of social justice and would lead to a fairer distribution of wealth. The minimum wage is current- ly set at €4.20 per hour, from which national insurance is then deducted. In 2015, there were 18,625 employees on the mini- mum wage; only 3,241 of these were employed on a full-time basis. Charles Miceli, of Alleanza Kontra l-Faqar, said that the current minimum wage was not enough to allow the families of the lowest-paid workers to meet their basic needs. "This increase could be spread over three years while a regular review should be made manda- tory to ensure that the minimum wage meets the amount required for dignified living," he said. Miceli said it was the role and responsibility of the government to provide a decent minimum wage, and it should not wait for social partners to demand this increase. When asked by MaltaToday if the campaign had approached the General Workers' Union and the Union Haddiema Maghqu- din to get them to join the cam- paign, he said that both unions did not want to commit them- selves and that they seemed to be focusing on the concept of a living wage. "We cannot wait for social partners to take a stand, and we decided it was time to launch this campaign," Miceli said. "The unions are focusing on the living wage, but I don't see how, when the concept has not even been defined yet." Caritas' Leonid McKay said that the organisation had been very careful in the choice of products and services it included in a shopping basket it used to calculate the cost of living. "Nevertheless, the minimum wage still was not enough to provide a decent living to low in- come families," he said. "Raising the minimum wage would also generate many more advantag- es, as more families would have greater spending power to inject into the economy." Erica Schembri, of Moviment Graffitti, said that some indi- viduals were also supporting the campaign. She said that the campaign planned a series of upcoming activities, discussions and meet- ings to keep the public informed of its efforts. In a message on twitter, op- position leader Simon Busuttil backed the NGOs' proposal and the campaign to raise the mini- mum wage. "I believe that this NGO pro- posal for an increase in the minimum wage is reasonable and ought to be supported," he wrote. Malta: The Minimum Wage The minimum wage was estab- lished in 1974 and is added on only through the cost of living adjustment (COLA). In Malta, the minimum wage varies according to age and sector: €4.20/hr for employees aged 18 and over (€168.01 per 40-hour week) €4.02/hr for employees aged 17 (€161.23 per 40-hour week) €3.92/hr for employees under 17 years of age (€158.39 per 40-hour week) The Campaign for a Decent Minimum Wage is recommend- ing that the minimum wage be increased by 3.5% for three con- secutive years, that the COLA mechanism be revised to faithfully represent the cost of living, and that tax-bands and benefits aimed at protecting low-income earners then be automatically adjusted to reflect the new minimum wage. Economist Karm Farrugia insists that Malta's economy can sustain a 10 to 12% increase in the mini- mum wage, especially given the positive performance in the past few years. Such an increase would enable all workers with depend- ents to meet their basic needs. He suggests that a regular review of the minimum wage rate should be made mandatory to ensure that it meets the amount required for a dignified living. New coalition calls for 'dignified' housing opportunities MIRIAM DALLI FIFTEEN organisations repre- sentative of civil society have joined forces in calling on legisla- tors to act on the rising rent prices which are negatively affecting the most vulnerable in society who can't keep up with the price hikes. Coming together under the 'Malta rent coalition', the organi- sations said they were joining forces to raise the issue on the na- tional political agenda. "Our coalition is based on a shared vision where economic growth is not equated with dep- rivation and marginalisation, but instead leads to social and human prosperity for all." The organisation said that the sharp increases in rent prices over recent years were seriously im- pacting the ability of vulnerable persons, including families, to secure dignified accommodation. The worst affected include sur- vivors of domestic violence, the elderly, persons with disabilities, migrants and refugees, women trapped in prostitution, youths, persons with mental health prob- lems, and newly-separated or di- vorced persons. "In our experience, persons fall- ing into multiple categories, such as women with disabilities or el- derly refugees, are more acutely affected." Other persons include those on low or even average income. "Although possibly a sign that Malta is becoming more prosper- ous, several Maltese and foreign individuals are simply unable to cope," they said. "Whilst we welcome Malta's economic growth, we also urge the authorities to engage in a pro- cess that will ensure growth that is truly nation-wide, and based on principles of social justice and re- spect for human dignity." Malta, the coalition added, needs to ensure that all persons have access to affordable accom- modation. The organisations making up the coalition work closely with many of Malta's marginalised communities and they are wit- nessing the consequences of sharp and often unpredictable in- creases in rent prices. This, they said, is resulting in homelessness, families regularly moving from one locality to an- other, substandard quality of ac- commodation, over-crowding, replacement of studies with em- ployment and over-reliance on temporary shelters. "These are exacerbated by the long waiting lists, or ineligibility for social housing." The coalition urged the author- ities to give the matter "due and urgent consideration", not only in the interests of the persons di- rectly affected by these situations but also for the sake of securing social cohesion and dignified liv- ing conditions for all persons. Prior to the presentation of Budget 2017, Caritas and the Al- liance Against Poverty urged the government to address the mat- ter. In reply, the government pro- posed doubling the rent subsi- dies for low-income earners liv- ing in private residences – from a monthly maximum of €83 to €166. The means test to assess who qualifies for the scheme will Why raising the minimum wage is important The Campaign for a Decent Minimum Wage says raising the minimum wage would lead to a general increase in wages, especially in the lower-income brackets, and encourage welfare claimants to take up gainful employment, apart from allowing greater spending. Malta's main sources of foreign investment (financial services, on-line betting etc.) are not attracted by low remuneration, but by laws and fiscal incentives that makes the island financially attractive. So raising the minimum wage would not affect competitiveness in this area. Construction and tourism cannot move elsewhere if wages are raised: these sectors have experienced growth and prosperity in recent years, so most of the businesses involved can afford to pay more decent wages. The government might consider fiscal incentives for the manufacturing industry which may find low wages attractive (and an incentive not to consider moving elsewhere), to offset possible effects that raising the minimum wage might have on the attractiveness of Malta to such industries. Leonid McKay, Caritas; Charles Miceli, Alleanza Kontra l-Faqar, and Erica Schembri, Moviment Graffitti (Photo by Ivan Consiglio) Minimum wages in EU member states (Jan 2016). Denmark, Italy, Cyprus, Finland and Sweden do not have a national minimum wage. Source: Eurostat