Labour migration policy needs stronger framework to address workforce challenges, Malta Chamber says

Malta Chamber welcomes labour migration policy, saying it can be strengthened if public sector employment is reduced

The Malta Chamber has insisted on government aligning the labour migration policy with Malta Vision 2050 (Photo: James Bianchi/MaltaToday)
The Malta Chamber has insisted on government aligning the labour migration policy with Malta Vision 2050 (Photo: James Bianchi/MaltaToday)

The newly launched labour migration policy will only be effective if the labour market is strengthened through a reduction in public sector employment, more incentives for upskilling and reskilling, and more support for investment in digitalisation to improve productivity, the Malta Chamber said on Monday.

“All policies need to be aligned and fully integrated into the Malta Vision 2050, to ensure a holistic and long-term strategy for the nation’s workforce and sustainable economic growth,” the Malta Chamber said.

Earlier this month, government unveiled its labour migration policy to address employment of non-EU nationals. The policy aims to discourage and penalise constant turnover of foreign workers.

The Malta Chamber has called for further clarification on minimum termination rates, particularly on calculating workforce size for companies within group structures. Specific scenarios needing clarity include terminations during probation, fixed-term contracts, or seasonal employment. The Chamber opposes a one-size-fits-all approach, emphasising the need to address sectors like healthcare that face chronic worker shortages.

On eligibility for additional Third Country Nationals (TCNs) based on workforce percentages, the Malta Chamber questioned whether subcontracted workers are included. It also sought clearer guidelines for temping and outsourcing agencies, expected to meet the same criteria as other companies. The Chamber proposed introducing renewable seasonal work permits to reduce recruitment costs and enhance employment stability.

While supporting the prioritisation of Maltese and EU nationals, the Malta Chamber stressed that persistent local labour shortages demand flexibility in proposed thresholds to account for sector-specific challenges. It also advocated for transparency in wage rate studies, urging public disclosure of methodologies and addressing external factors like high rental costs.

The Chamber endorsed the creation of tailored Memoranda of Understanding (MOUs) with other countries to streamline ethical labour migration, rewarding compliant companies and agencies. It highlighted the need for robust enforcement to combat exploitative practices in outsourcing and temping, where regulation has historically been inadequate.

Transparency, efficiency, and enforcement are crucial to the Labour Migration Policy’s success, the Malta Chamber insisted, stressing the importance of aligning it with Malta Vision 2050 and swiftly addressing abuse by employers or employees.