To the Christians who run the Chamber, try living off €149 a week

There’s quite a lot of hogwash in the air when it comes to interpreting the multiplier effect of economic success and growth.

The other day I posted three - minute - parcels for Europe which included three Maltese calendars and a Maltese diary. I arrived late. The two girls at Maltapost could not even afford a smile, let alone a simple "good afternoon".

I paid €24.72 in total for postage. The gifts I was sending cost me €9.20. Maltapost has just put up the prices for foreign post and local printed matter after a green light from the Malta Communications Authority. 

Now, it could very well be that before coming to a decision, the MCA asked the public for its views. 

I missed this public consultation call (if one was ever issued, that is). But it is very convenient to tuck a small advert somewhere and imagine that it will be read by all concerned.

With the great crisis and threat facing the printed media, the last thing one do is put more monetary pressure on publishers.

But the MCA effectively agreed to make postal services in Malta the most expensive in Europe.

Maltapost increased its printed matter post, hitting at the heart of local business, but more importantly at all those NGOs and - more importantly still - printed publications which are distributed to local addresses too.

If Maltapost was losing money, then perhaps we could understand their thinking. But they are not.

But since it was stupidly privatised, it is now driven by profit, when really and truly it should have been considered as an essential service.

As we all know, Maltapost is co-owned by Lombard Bank, and the man who runs and drives Lombard and Maltapost is Mr Joe Said. Incidentally, he is also a co-owner of The Independent and he served as Chairman of Heritage Malta (no longer, it seems, at least not since March of last year - which is understandable enough, considering Said is not exactly in the government's good books).

Well, that the Malta Communications Authority ignores the fact that price hikes within the postal service are no laughing matter, raises the question of whether the MCA did in fact look at an impact assessment of its decision.

This price hike should have fanned the ire of the Chamber of Commerce and the GRTU, but there you go... the Chamber of Commerce instead found the time and energy to express their opinion on the minimum wage.

The minimum wage issue was brought up in last Monday's edition of Reporter, where Social Policy Minister Marie Louise Coleiro Preca made it very clear that the minimum wage translated itself to poverty, and should be raised.

That led to an immediate reaction from the Chamber of Commerce.

The minimum wage in Malta works out at €717 a month or €8,615 a year, and reducing the national insurance contribution, it works out that a person on minimum wage ends up with €646 a month (or €149 a week).

Now, when a couple of members of the Chamber of Commerce take a break and rush to one of the Valletta restos to have a three-course meal accompanied by a Chablis and some well-packaged sparkling water (with a Grappa or Cognac to close), the bill would probably come to around €149 (tips included). Equivalent to the wages of a poor soul!

And by the way, the bill would usually be included in the entertainment budget 'tal-kumpannija'.

Now try and rent a flat with that €646 a month, pay your electricity and water bill, pay for your food, your children's clothes, your medicines, your Melita cable, your travels and mobile card with that amount. Forget about going to the cinema, having a pizza or buying a Super 5 ticket.

There is a reality out there that we cannot ignore. But if it were up to the Chamber of Commerce and Employers' Association, we should ignore the fact that there are thousands out there who can't make ends meet.

Raising the minimum wage will improve the plight of these people.

The Chamber of Commerce insists that any raise should be linked to productivity. Yeah, right. Productivity, of the same kind that drives some people to receive exaggerated salaries in the private sector to do f*** all.

The problem with people who wish to appear conservative is that they believe that there we should be living in a classist society, and that they should have someone to look down on.

The other argument - which happens to be embraced by economists the world over - is that once you increment the wages of the lower income bracket you increase spending all the way up and this trickles upwards, not sideways.

Which would eventually mean that the Chamber of Commerce guys who dine and wine at their Valletta haunt could easily go for a foie gras as an entrée - not a risotto with porcini - and more importantly opt for a more exquisite wine, perhaps a Chateau Margaux.

The worst thing is that in the last election, everyone - and that includes the Labour Party and the Nationalist Party - made it a point to promise that they would not change the minimum wage. 

It was of course a clear signal of how the political parties (excluding AD) suck up to the business community.

There is much talk about the economic growth in the country and we are consistently lambasted with statistics. But statistics does not feed society and especially those in the periphery of society.

The same applies to all this talk about foreign companies registering with the MFSA and the money they get and the spill over effect.

There's quite a lot of hogwash in the air when it comes to interpreting the multiplier effect of economic success and growth.

Most of the time it does not trickle down, and the reason for this is because there is massive tax evasion and failure to declare the real income.

I have no idea how many people are on the minimum wage. But it should not be more than 8,000 people. 

If they were granted the right not to pay their National Insurance, they would definitely feel slightly better.

It would cost the state no more than €6.8 million a year, but it would guarantee that each individual on the minimum wage would have €852 more in their hands per year.

In this way, the government would not have broken its promise, and the men that run the Chamber of Commerce would not have succumbed to the urge to issue a silly press release.

And perhaps, overall, our conscience would be a little more at ease.

The stark reality is that groups such as the Chamber of Commerce, the GRTU and Employer's Association have nothing better to do with themselves.

Instead of focusing on real issues they continue to embrace the argument that cheap labour and less taxes are the solution for the future.

How this country can sustain its educational, health and infrastructure without taxes beats me.

And so we start the New Year with no clear indication of how real income can be effectively taxed and siphoned to ensure that the essential services in this country continue to function.

Some readers may interpret my opinion as one which castigates those who make money or are simply better off.

Not at all. I have no problem with being better off and bathing in Evian water (like the King of Brunei did at the CHOGM conference) or having pasta with white truffles and sipping Talisker whiskies and downing a Chateau Angelus.

It just is not right that we live a life of decadence as others scrounge to find the cash to buy their little girl or boy a suitable birthday present, let alone to take them to that politically incorrect 'delicious' treat at McDonalds, which would come with a free gift.

Is it too much to ask?

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Well said. It's easy to pontificate on the effects on the economy if the minimum wage is raised when you have a high salary and perks. This applies not only to the private sector but also to the higher echelons in the public service. I too cannot fathom how any individual, never mind a family, can live on the minimum wage even if one adds to it the social benefits. Imagine, furthermore, how pensioners with the minimum pension can make ends meet. Recently, while shopping at a supermarket, I was quite moved to overhear an old couple remarking that the price of a certain brand of washing powder had increased by 5 cents. It made me realize that these persons memorized the price of essential products and had to take account of every cent they spent.
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The only people that can cope with that kind of salary live with their parents are single at 40 and have never set foot out of this country not even gozo. Effort was made to move these people up the ladder, say with training. But the new emerging industry that is using minimum wage i.e. the cleaning/security and nursing aids together with restaurants hotels will have none of this. So it is up to the government to adjust this
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It is not true that the business class has no scruples. The majority of the business class in Malta hardly have workers on the minimum wage. Most of the workers are considered assets and as such they are taken care off, given a wage far above the minimum, and trained on a yearly basis. However,it makes me sad to think that the Chamber -who is supposed to represent the creme de la creme of the economic operators, can come up with the criticism of a higher minimum wage. The Chamber should be in favour of a higher productivity and not against a higher minimum wage. It should also be against that the maternity leave is paid by economic operators and not by Government and also be againts that the sick leave of its workers can be passed on to take care of kids , or parents! Money does not grow on trees but I think that local economic operators are fair and have the welfare of their workers at hard. Of course there will always be cowboys and it is true that the Maltese unskilled face heavy competition from illegal immigrants who are pushing the minimum wage down, but this is for the Maltese to decide whether more illegal immigrants should come to Malta or not.
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Mr. Balzan, to me this is one of the best from the heart right up. I must say you lost me when it comes to menu mentioned in some plash restaurant. That bring me to the time when I ran the streets in Valletta and at City Gate one could find 'il-pastas' who used to earn a living carrying having weights on his back for the rich merchant for penny. I still can not believe seeing someone sitting next to Muscat who was so arrogant to say: 'Maltese are luck that they are working'. If the worker is lucky what about the employer. I believe politicians are a hard skin race who play with words and employ oppressors who do their dirty work while the people are feed the dose of opium that Democracy is the best form of government. Why we have such disturbance between the rich and the poor? Mostly carried from generation to generation. Of course we can always vote for change. What a joke!
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Any one who is really interested to know how we got here, look at the documentary called "Inequality for All". http://www.imdb.com/title/tt2215151/
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The business class has no scruples, and no sense of decency. Just one example, which comes close to the discussion at hand. Several years ago, the term "downsizing" was invented to talk about firing people so as to be more competitive on the global market. Apart from making us think of a diet as opposed to people losing their jobs, "downsizing" was really total hypocrisy. Not only would a company fire 3 middle managers and only keep on two - now doing three times more work for the same salary - but a study showed that (in the US) the 10 companies which downsized the most number of people - at the SAME time had increased the salaries of the CEO's by a MINIMUM of 35%! In other words, it was all about greed. In the last ten years, the gap between the lowest wage earner and that of the CEO's of teh top companies has increased soemthing like 200%. And durign all this time the bosses STILL pretend that "minimum wage" will break their budgets and force them to hire fewer people. It is all untrue. Every other time the minimum wage has been raised in any country in the western world - the result has NEVER been the dire warnings the bosses predicted beforehand. Why should we believe them now?
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trid tkun vera ma tisthix biex issemmi lil kristu u mintoff fl-istess nifs. madankollu l-artiklu ta' saviour jaghmel hafna sens.
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One suggestion could be that of the COLA (Cost Of Living Adjustment) being rounded up for minimum wagers only. So when the COLA adjustment will be EUR 3.49 per week, minimum wagers will get EUR 4.00 per week. The little cents will top-up the minimum wage bit by bit to correct the existing very low minimum wage. This will not give an economic shock to SMEs employing people on minimum wage. Let's not forget that we, as a nation, should sustain and help SMEs to grow but not at the expense of the workers. The above suggestion is a win-win situation for both SMEs and the workers; SMEs will have time to adapt and the minimum wage earners will get a topped-up minimum wage.
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Salv, your sentiments are admirable, and I am sure you mean well. Most would agree with your aims, but not with your solution. The solution is not to increase the minimum wage, as this will lead to many other increases which would render the Maltese economy fragile. I agree that those that TRULY need help should be given it. But I would suggest the administration gets those money suckers off social services and uses these funds to further support low income earners. Also, why not reduce to sufficient numbers that "lost cause" of a Public sector whilst energising the private sector to produce with high paying jobs. This is possible, just look at the performance of financial services these past 20 years.
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Saviour Balzan's comments reflects the preaching of Jesus Christ's, those of Dom Mintoff and the socialist movement. Very well said and prosit from my heart because apart from Mary Louise Coleiro, you were the ONLY person to highlight this problem. It is very very sad that the head of our catholic church in Malta, bishop Scicluna, is far more concerned with blocking the legal rights of the gay people than to give a helping hand to those who are desperately in need. But the maltese church allies are not these poor people but those who have power and money and can buy villas, yachts and probably heaven.
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Speaking up again for the down trodden, may God bless you.
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Well said Saviour , but don't you think that our very beloved politicians have no ears and they don't give a s**t to what the commoner in the street says?