24 - 30 May 2001

Another long hot summer?

The trade unions are once again on the warpath, issuing directives to their members after discussions on a new collective agreement for workers at a number of corporations reached a stalemate.
Both the Union Haddiema Maghqudin and the General Workers’ Union have increased pressure on the various managements to meet their demands, demands that are, in our opinion, not only unreasonable, but downright excessive, even more so at a time when the country’s economy is not doing as well as it should.
The Malta Business Weekly acknowledges the fact that unions are duty-bound to call for better conditions and salaries for their members, however we totally disagree with the excessive salary demands they are making.
Last week, the GWU did not accept an offer for Lm150 a week plus added benefits for drivers at the Freeport. The union turned down an average wage packet in the region of Lm700 a month, a salary that some executives in the private sector can only dream of taking home. But no, the GWU failed to see this as suitable for a port worker. This week the UHM issued directives to its members at the Malta Maritime Authority once again demanding unreasonable increases.
The government, and rightly so, has said no to these demands and called on the unions to be more responsible in their actions. The government also made it very clear that it will not accede to their demands. It has shown its willingness to revise new collective agreements but it simply cannot accept salary increases that will only create a greater burden on the local economy.
When finance minister John Dalli announced the introduction of taxation on fringe benefits, the unions were quick off the mark to support such a move but they kept mum when it comes to cutting public expenditure and they see nothing wrong in asking the government to fork out more money. How can they go to the government and ask for such high salary increases? The unions also have a responsibility towards the country as a whole and not only towards their members. The unions must also help the government in its efforts to cut down on public expenditure and they can do so by not asking the government to spend even more.
The unions must also be willing to do their part. Any increases will only be given if they lead to an increase in productivity. The government gave a hefty increase to public sector workers but there have been no visible signs of an increase in productivity. If they want salary increases, they must also agree to more flexibility in working conditions. Maybe the unions should also consider removing summer half-days for government workers and parastatals.
Minister Dalli told the unions in no uncertain terms that if the government accedes to their requests, it will have no option but to increase taxes. This makes sense, but The Malta Business Weekly feels that such a move would be detrimental to the government and a disaster for the economy. We can never accept more taxes on the people, especially on middle class workers. This sector of the working community is already paying enough. Taxing the working class again would be unfair. Yet on the other hand, we feel that the government is right in taking such a stand. The unions cannot simply ask for something and expect to receive it, even more so when such a demand is unreasonable.
There is another issue that arises from the present situation – the impact these directives are having on Malta’s image. The strike at the Freeport may have extremely serious repercussions on the corporation’s business. There is a very strong possibility that the Freeport’s clients may take their business elsewhere. A sharp decline in business could also hamper the Freeport’s chances when it is privatised. Do the unions ever consider the repercussions of their actions? It seems they don’t! The 1,000 cruise ship passengers who witnessed the scuffles outside the MMA’s offices did not get a good impression of our “hospitality” either?
The UHM and the GWU have warned that further directives will be issued if a solution is not found. The Prime Minister said on Monday he was confident a solution could be reached. We augur that the unions change their attitude and make more reasonable demands.
Otherwise, we can expect another long hot summer.