|
Kurt Sansone
The change in legislation on public holidays being considered by government after the International Labour Organisation’s ruling could effectively annul any positive economic impact the decision taken last year could have had on productivity with employers now having to negotiate with unions whether public holidays that fall on a weekend will be added to employees’ vacation leave.
And government’s decision to simply transpose the ILO’s ruling without amending last year’s measure and effectively removing a number of public holidays altogether has left employers dumb-founded as to how a government that purports to be pro-business is leaving employers with no legal backing to their argument for increased productivity.
Last year’s measure meant that public holidays falling on a weekend would not be compensated for by an additional day in vacation leave but were still considered to be public holidays in terns of financial compensation to employees required to work on the respective days. The measure was applicable to all employees irrespective of collective agreements in force.
The ILO ruling, which government intends abiding by, stated that any measure adopted by government could not overrule collective agreements. The ILO ruling effectively means that government’s measure will have a diluted impact on productivity since most employees in manufacturing and tourism are covered by collective agreements.
Since most collective agreements do not specify the public holidays by name but simply refer to the official schedule annexed to the law on public holidays, government would have to abolish a number of public holidays altogether in order for its measure to have a lasting impact on productivity while still respecting the ILO’s ruling.
Prime Minister Lawrence Gonzi yesterday confirmed that government will respect its ILO obligations and will be abiding by its rulings.
“ILO has declared categorically that government had every right to take the decision it took. What the ILO criticised was the 1975 decision taken by the then Labour government to remove public holidays,” Gonzi said.
Without saying what government’s final decision would be, Gonzi ‘warned everyone’ that the message being given by the GWU is that “the union is pushing us (government) to reduce public holidays.”
“This means that so far, through the measures we took, workers were not affected financially, but if we reduce public holidays workers are going to lose their pay for public holidays and if the union is pushing us that way it’s important that its members get to know this,” Gonzi said at yesterday’s media briefing.
However, in a letter to GWU secretary general Tony Zarb, published later, Gonzi re-affirmed government’s intention to simply transpose the ILO ruling.
In the letter the prime minister lambasted the union for interpreting the ILO ruling as meaning a total withdrawal of the public holidays measure enacted las year.
Meanwhile, speaking to MaltaToday, a spokesperson for the Malta Employers’ Association said the association expected government to enact a “clear law that reflects the policy as expressed in the 2005 budget speech that it (government) wants to see an increase in the number of productive days.”
“Government has not yet committed itself to a final version of what it intends doing and there are a number of informal meetings going on to determine the best solution.
“The MEA wants a clear law that reflects government’s policy as expressed in the 2005 budget speech, that it wants to see an increase in the number of productive days, and which does not allow space for ambiguity or different interpretations as has happened until today,” MEA Director General Joe Farrugia told MaltaToday.
“The ILO decision makes it clear that no laws should be passed that limit the principle of free collective bargaining but it also stated that government has the right to enact legislation to increase productivity.
“For the MEA the preferable option is a reduction in the number of public holidays since the measure enacted as yet has not led to any increase in productivity at least in the tourism sector,” Farrugia said.
The Federation of Industry on Friday also cautioned government not to renege on its objective to increase productivity.
“The FOI believes that even if the method selected to increase productive days was not the best option, the objective still stands. Malta enjoys one of the highest numbers of public holidays in Europe, making its productivity costs uncompetitive. It was in this spirit that government had decided to amend the National Holidays Act and remove public holidays falling on a weekend from being eligible for an additional day of vacation leave,” the FOI statement read.
The federation also warned that companies have already costed their operations based on an increased amount of productive days. “Going back on these costings will result in lack of price credibility and possibly loss of orders,” the FOI said.
The federation said it expected government not to move from its stand and “if the Act has to be amended again, alternatives should be found to ensure that Malta’s competitiveness is improved.
ksansone@mediatoday.com.mt
|
