Chamber of Commerce warns of economic effects of re-introducing leave compensation mechanism

The Chamber of Commerce has closed the book on the matter of compensation of vacation leave for public holidays that fall on a weekend, warning of the consequences of the re-introduction of the mechanism.

"It is most unhealthy to drag issues out of the past, that have been settled and concluded for more than 10 years," the Chamber said in a statement this morning, referring to the compensation mechanism which was removed by the Nationalist administration in 2005.

The Chamber warned of consequences regarding productivity and competitiveness if the compensation mechanism is re-introduced.

"Re-introducing the compensation mechanism will directly affect the country's productivity and by consequence its competitiveness. At a time when the country is doing relatively well, all interested parties must resist the temptation to start taking the economy for granted."

The Chamber said it was satisfied that the matter has transcended a number of administrations in recognition of its clear positive effect from a productivity and economic expansion point of view. 

“The Chamber is very vociferous to advocate in favour of competitiveness, as it is the only key with which the country can assure more investment and the generation of jobs through economic growth,” it added.

The Chamber recommended that the country looks to find new solutions on how to increase productivity and competitiveness.