Employers warn of artificial wage inflation after 150 workers offered WSC post

The Malta Employers’ Association has voiced concern about the engagement of dozens of fitters at the Water Services Corporation, after local media reported 150 prospective employees had received letters from the government entity informing them that they have been selected for employment.

The Sunday Times of Malta reported on 19 March that the prospective employees had been selected from the alternative JobsPlus register, and had received a letter signed by Michael Parnis, as HR personal advisor to the WSC chairman Mario Zammit, offering its recipients a job as “multi skilled fitter level 3”, entitled to a salary of €15,488 a year.

In a statement this morning, MEA casted doubt on the productivity that these persons would have as WSC employees, adding that many of them would have been attracted to the WSC from the private sector, pointing out that there were “hardly any fitters on the unemployment line.”

MEA commented that while competition within the labour market yields labour mobility and better employment conditions, such a move has repercussions.

“This drain on human resources in the private sector is leading to artificial wage inflation, plus increasing demand for foreign workers to compensate for skills shortages,” MEA said. “Employers in the private sector cannot compete with promises of financial packages and lax working hours which are funded by the taxpayers.”

The Association said that while it is recognised that any organisation may conduct recruitment exercises in line with its human resources and business objectives, in such cases the corporation should explain why the employment of these people was necessary, the criteria of selection and the qualifications of the successful candidates.