Issue link: https://maltatoday.uberflip.com/i/844299
14 GOZO may have a reputation (at least, among tourists and non- Gozitans in general) as a somewhat sleepy, unspoilt Mediterranean island providing an idyllic back- drop to the occasional weekend break here and there. But beneath this external veneer of peace and tranquillity, trouble seems to be brewing among the island's small (but economically vital) business sector. Employment has traditionally al- ways been an issue for Gozo: lack of local job opportunities drives thousands of Gozitans to com- mute to their workplaces in Malta each day. But what little employ- ment was already on offer appears to have been severely affected by a series of government schemes, en- acted before the last election, that enticed hundreds of private sec- tor employees to leave their jobs for employment with government contractors. This employment spree hit com- panies that are mostly involved in manufacturing and the construc- tion industry, apart from many small enterprises. A sizeable num- ber of new employees joined the Gozo Channel company, which took on just under 150 workers; others opted for jobs in security, carers and as cleaners... mainly working with those companies subcontracted by government agencies and departments. Joseph G. Grech, president of the Gozo Business Chamber, does not mince his words when asked how this unexpected development actually affected the Gozo-based companies where all these people were previously employed. "First of all we were immediately bombarded by phone-calls from our members. They were affected, naturally. One moment they had had a staff complement of trained workers – some of whom had been working for them for years – and from one second to the next, these employees all left. You can just imagine the chaos that erupted at these workplaces..." Has any attempt been made to quantify the actual impact, though? "From a survey we conducted, the number of employees involved runs into the hundreds. I don't have the exact figures at hand right now, but as I recall it was some- where in the region of around 900 workers, who upped and left the private sector all at once... and those companies are still look- ing for replacements. For a small economy like Gozo, 900 is a large figure. The population of Gozo is officially estimated at around 33,000. So every single employee who leaves private sector employ- ment constitutes a large loss. I think it was a heavy slap in the face for the Gozitan businessman and entrepreneur... because it all hap- pened in one go. It wasn't a case of one or two people leaving: they all left together..." What about the effect on the companies concerned? What sort of 'chaos' are we talking about, ex- actly? "The effect was significant. It's not easy to quantify; but some of our members called us saying that there's been a slowdown in work orders, because they don't have enough staff to handle them. There were one or two foreign companies which even told us that their CEOs were flying in from abroad: to see, among other things, whether to relocate to other coun- tries. There are other companies which, normally at this time of year, would employ a number of temporary employees to cope with the workload... these found that, not only were there no new re- cruits, but their existing staff left them as well. So they are now with their backs to the wall. What are they going to do? So the effect was big. I only hope that a solution can be found..." The Gozo Business Chamber is already in talks with the various government ministries concerned – Employment and Investment, Gozo, etc. What solutions is it ac- tually proposing? "On our part, we have already had a few meetings with the relevant government departments. We will have others. The question we're asking is whether anything can be done to address the staff shortages these companies and entities are now experiencing: even, if neces- sary, by bringing in workers from overseas. Because let's face it: the ones who have left, are gone now. And it's their choice. I'm not say- ing there is anything wrong with working with the government. But we are still left with a serious situa- tion to somehow solve... "Perhaps there is this idea that, if you work with the government, you have more security of tenure: you have 'a job for life', so to speak. That could be part of it. What I can say is that, in some cases, they were getting paid more in their previous jobs than what they are earning now. So I don't think the reason could have been a question of salaries..." Ironically, this also comes at a time when the government is ac- tively trying to encourage more companies to relocate to Gozo by means of tax incentives. Gozo was in fact given considerable promi- nence in both parties' manifestos: so isn't this development, in a sense, a betrayal of the promise to address the perception of Gozo's employment issues? "Let me put it this way: I wel- come the fact that everyone rec- ognises the need to address these problems. It's not a perception that there is no work in Gozo. It is true that there isn't work for every- one. In fact, every day about 1,000 people cross over to Malta: there are three ferry boats coming and going all the time. So yes, Gozo could do with more workplaces: but then again, it's always been this way. There has never been a time when the entire population of Gozo could work in Gozo. Peo- ple have always had to find work in Malta; and then, where possi- ble, if a vacancy arises they might come back. But what we found irksome about this latest develop- ment is that these were not people who were unemployed: these were people who were already working. They had jobs, but they left to sign up to these new schemes with gov- ernment contractors..." The timing also suggests that there may have been political mo- tivation behind the sudden em- ployment spree. If so, isn't it ironic that a move intended to attract votes in Gozo should also have damaged Gozo's business sector so severely? "You could see it that way..." he breaks into a chuckle: "It's like hav- ing children at home. You promise them a lot of things; then later you tell yourself: 'now look what I've done!'... I don't think the intention was actually to cause the damage; but then, everything has its cause and effect." This brings us to a long-standing issue concerning Gozo: there is no shortage of electoral promises ad- dressing the sister island's needs... but is there really a holistic, long- term vision for the future of the island? At least, from a business perspective? "I would say, so far, there has never really been a long-term busi- ness plan for Gozo. This is one of the things we brought up into our meetings with the ministry. There is need for a clear vision of the di- rection we want to take Gozo in. If we have a sense of direction, we might one day get where we want to go. But if we just wander off in the hope of some day getting somewhere, we'll end up taking every road instead of the one we want to take..." What road would that be? From the perspective of an outsider look- ing in, the bulk of Gozo's business sector seems to be rooted in tour- ism. There are other sectors, true; but the island has geared itself up as primarily a tourist destination. Is this enough of a foundation to build a long-term economy upon? "I think it would be a big mis- take if the people doing the plan- ning think only in one direction. We cannot rely too heavily on any one sector – be it tourism, manu- facturing, financial services, etc. – because the way markets fluctu- ate, we could be on top today, but crash to the bottom tomorrow. If we don't have enough variety, we could lose everything in one fell swoop. This is true of any sector: at the moment, tourism is do- ing well. And long may it remain so. But it wouldn't take much for tourists to start choosing other destinations apart from Gozo. We need to maintain a balance, so that all business sectors are given their due importance." Still, some form of prioritisation must take place. How does the Business Chamber assess Gozo's priorities at the moment? "The one thing we emphasise most is connectivity. Let me give you a small example: take two places, for instance, a city, and a Interview By Raphael Vassallo maltatoday, SUNDAY, 2 JULY 2017 One moment, companies had a staff complement of trained workers – some of whom had been working for them for years – and from one second to the next, these employees all left. You can just imagine the chaos that erupted at these workplaces... CHAOS Gozo's business exod There are people here who never get to see their children at all. They would get up early in the morning to go to work, long before the children are awake. And by the time they get back – especially in winter – their children will already be asleep COMMUTING