Employers warn against ‘populist work pledges’ after PN leader’s four-day week proposal

The Malta Employers’ Association has warned political parties against making “populist and unrealistic” promises ahead of the general election, saying such proposals risk undermining the country’s competitiveness at a time of severe labour shortages.

In a statement, the association said it was concerned by suggestions to improve working conditions in the public sector, arguing that such measures could deepen a two-tier system between public and private employees. It referred in particular to the government’s recent commitment to match the second-pillar pension contribution of its workers.

“The public sector is not subject to the same commercial pressures that drive efficiency and innovation in the private sector,” the MEA said. “National policies must ensure the public sector does not become a shelter for inefficiency or inflexibility at the expense of the country’s competitiveness.”

The warning follows Opposition leader Alex Borg’s proposal to trial a four-day working week within certain government departments. Borg said the Opposition would introduce the shorter week in the public sector first and extend it to private businesses if the model proved to increase efficiency and productivity.

MEA cautioned that such initiatives could backfire in Malta’s current context of acute worker shortages. “When productivity declines, the need arises for more labour to maintain output levels,” the association said. “In the current climate, such proposals are not only impractical but would likely increase reliance on imported labour, which runs counter to national policy objectives on sustainable population growth.”

The association also pointed to experiences in other EU countries, where trials of shorter workweeks led to productivity drops and operational challenges, prompting governments to scale back or modify their plans.

No EU country has yet introduced a blanket four-day working week with reduced total hours, though Belgium allows employees to condense their standard hours into four longer days. Trials have also taken place in Spain, Portugal and Germany.

Malta’s workforce remains among the most hard-working in Europe, clocking an average of more than 50 hours a week. The MEA said that any shift toward shorter working hours must be tied to higher productivity and better efficiency, not election-driven promises.

“Employment policies must promote equity and cohesion across all sectors,” it said. “Short-term populism risks destabilising the labour market and eroding Malta’s competitiveness.”