Chamber of Commerce warns against 'populist narrative', calls for studies on four-day work week

The Chamber of Commerce has warned against descent “into a populist narrative” as it spoke about the need for studies before implementing a four-day work week.

The Chamber was reacting to PN leader Alex Borg’s proposal last week, which has raised eyebrows at the Malta Employers’ Association and brought criticism from the Labour Party.

On Wednesday, the Chamber said that overlooking the full implications of introducing a four-day work week risks severely damaging Malta’s economy. 

The organisation stressed the need to move beyond brief statements that tend to raise more questions than they provide solutions. 

It stated that such proposals must be presented in detail to allow for comprehensive evaluation and feedback, cautioning that oversimplified statements on this matter carry "far-reaching dangerous consequences" for businesses and the economy at large.

The Chamber predicts that a shift to a four-day work week would result in significant negative effects in terms of productivity, output, labour costs, and international competitiveness. It noted that sectors that rely heavily on either a physical presence or high hourly output, such as manufacturing, hospitality, health, and care homes, would face immediate challenges under such a change.

The Chamber further stressed that Malta’s specific current economic landscape, namely historically low unemployment, a significant dependence on foreign labour, and low productivity, must not be ignored.

“Before any policy or pilot program is introduced, a comprehensive national socio-economic study is essential to assess the short and long term impacts across all Malta’s economic sectors.”

The Chamber warned that this subject should not be allowed to descend into a populist narrative. 

“As election frenzy starts building up, political parties should steer away from descending into the traditional populist game of which party or candidate promises the most – ultimately, unsound measures and irresponsible proposals will be borne by taxpayers.”