Malta’s major unions seek urgent meeting with Abela over absence of COLA relativity adjustment in 2024 Budget

Malta’s major unions want an emergency meeting with Prime Minister Robert Abela to discuss the absence of a relativity adjustment for COLA for employees in the public and private sectors.

“We kindly ask you to accept our request so that we can discuss this situation with you and address it,” the unions said directly addressing Abela on Friday.

In a joint press statement, the Confederation of Maltese Trade Unions (CMTU), the Forum, the General Workers' Union (GWU), and the I-UHM Voice of the Workers expressed their concerns about the impact on workers in the Public Service and the Public Sector following the omission of the COLA mechanism in the 2024 Budget without the relativity adjustment.

The COLA + Relativity mechanism was agreed upon by the unions and the government, coming into effect in 2023.

First announced in 2021 but officially unveiled during the 2022 budget speech, the additional mechanism was designed to ensure that workers in both the Public Service and various public entities could maintain their standard of living by adjusting their wages in line with inflation and other economic factors.

Finance Minister Clyde Caruana had said the additional payments would be handed every year and would be reviewed according to inflation, but this year there was no mention of them.

The unions said they were alarmed that the 2024 Budget not including any reference to this critical mechanism, raising questions about the financial well-being of these workers.

The cost-of-living adjustment for 2024 will be €12.81, an increase of nearly 30% over the €9.90 given in 2023, which the unions argue will harm thousands of workers, while the government’s wage scales will be disrupted.

They highlighted that the workers had not regarded the mechanism as a mere wage increase but as a way to ensure that their wages kept up with the cost of living. 

The unions are keen to emphasise that the COLA + Relativity mechanism is an essential element of their collective agreements and plays a crucial role in maintaining a fair standard of living for their members.