GWU slams Budget as 'insensitive to people's burdens' and calls for ‘freeze’ in government induced costs

In a statement issued following a meeting of the GWU National Council, the union has called for a “freeze” on Government Induced Costs, and a twice-a-year revision of the Cost Of Living Increase (COLA).

The GWU said that the Euro1.16 inflationary compensation for 2011 was “immediately eroded” by the measures announced, as the effects of measures announced on cement and fuel will immediately trigger inflationary consequences  on all consumers’ needs.

‘This Budget is more aimed to reduce the national deficit, rather than ensuring better living,” the GWU said, adding that people are faced with many recently imposed burdens, and nothing has been done to alleviate their situation.

According to the GWU, in real terms, wages are in decline as shown by recently published Eurostat statistics.

The GWU goes on to explain that the increases announced in the Budget continue to put more burdens on the construction industry and does little or nothing to address the crisis the sector is facing, moreover, the risk of mass lay-offs from this sector.

The Budget, the GWU said will have an enormous impact on the consumer, as the final consumer price will have to be increased with VAT.

These increases – the GWU warned – will not be compensated with the Euro1.16 COLA increase that was announced for 2011.

The GWU explained that although it understands that the COLA increase was calculated on the current mechanisms, it stressed that this will definitely be enough for workers and pensioners to cope with the increases on essential products, such as  gas and energy.

It also stressed that apart from these increases, Government is set to take back 10 per cent in stamp duty and tax from wages, that would leave workers with much less money in their pockets.

stressed that government ignored a series of proposals forwarded to government in a bid to alleviate the burdens that many Maltese are carrying.

Among these are measures to address the high cost of living, a revision in water and electricity tariffs and a reduction in taxes, with a scope to leave more disposable income in workers’ pockets.