An increase in minimum wage is 'imperative', Democratic party says

The Democratic party (PD) has lambasted the government for its failure to raise a discussion on increasing the minimum wage until now, saying that it is “imperative” that this increase materialises.

“This government, which is supposedly socialist, has completely forgotten the more vulnerable in society and has now, only after three years in power, decided to discuss the possibility of raising the minimum wage,” PD said in a statement.

It added that despite constant reminders of a booming economy, those with lower income do not feel the effect. “In reality poverty in Malta is increasing and unless we deal with the situation now future generations will reap the consequences. It is imperative that the minimum wage is increased so that those with low incomes will be able to enjoy a decent standard of living and possibly a share in the current economic growth.”

Since the government delivered its budget for 2017, the debate regarding the minimum wage garnered more attention from several organisations and groups, including the Malta Developers Association and Alternattiva Demokratika, who have called for an increase in the minimum wage. Campaign for a Decent Minimum Wage was launched in October and called for a 3.5% increase for three consecutive years, as well as a revision of the cost-of-living mechanism to better reflect low earners’ circumstances. Other organisations such as GRTU, Malta Employers Association and Chamber of Commerce came across as more weary.

Presiding over a Cabinet meeting in May, during which a study by Caritas entitled ‘A minimum essential budget for a decent living’ was discussed, Prime Minister Joseph Muscat said that the government was prepared to discuss the issue and encouraged all stakeholders, including unions, to take up the debate.

Last month, Muscat gave his clearest sign yet that he will increase the minimum wage on a permanent level, stating that the government will step in if trade unions and employers’ associations fail to reach an agreement.

“Employers and trade unions must sit down and reach an agreement on how the minimum wage should be increased. Yet if they don’t reach an agreement, the government will step in to increase the minimum wage permanently,” he had said.

PD also suggested that Lohombus Bank or a similar institution should be reconstituted in order to help those with a low income to buy there first home and “get on the property ladder”.

“Malta currently finds itself in the sad situation where people with a low income can neither afford to rent a property with rates going through the roof, nor buy one,” PD said.