Living and working in Malta

In its 2024 pre-budget document, the General Workers Union (GWU) continued to support the government’s intervention to stabilise energy and fuel prices. Employers sought clarity regarding future plans for energy subsidies. During the 2024 budget speech, the Minister of Finance announced that subsidies would continue throughout 2024.

The trade unions publicly demanded that the weekly pay increase of €12.81 as indexed by the Cost of Living Allowance (COLA) mechanism should be paid in full. The Malta Employers’ Association (MEA) anticipated a record increase and in 2022 advocated a cap on the mandatory COLA wage increase. In 2023, the MEA recommended that the COLA wage increase should not be taxed, to maximise the impact on purchasing power. Although these two MEA recommendations were not taken up by the government, they confirm the prevailing view of experts in labour relations that the litigations occurring between the social partners have not stifled the voice of compromise. The presence of this compromising mood has elevated social dialogue to a more pragmatic level and a higher consensual ethic. This readiness for compromise was, however, less evident during the initial stages of the collective agreement negotiations involving the nurses and teachers. In both cases, the unions resorted to industrial action, with nurses following their union’s directions to strike in March and April, while teachers engaged in a one-day strike in November. Such action has become common during negotiations, with the social partners being litigious and uncompromising initially and eventually moving towards a compromise at a later stage of the process.

In January, the Digital Platform Delivery Wages Council Wage Regulation Order, 2022, came into force. The regulation primarily aims to tackle bogus self-employment among platform workers within the delivery sector. The law was introduced following mounting pressure in previous years from trade unions, employers and platform workers themselves, with the latter organising a one-day strike in 2022. The impact of the law on improving working conditions is unclear.

In 2024, Malta is likely to experience labour shortages, and while the introduction of skill cards in the hospitality industry as well as the licensing of employment agencies are positive moves, they may exacerbate shortages. In early 2024, the findings of the first-ever public enquiry into workplace health and safety will be published. The enquiry was prompted by public outrage and demonstrations caused by the government’s resistance to investigate the death of a young construction worker, Jean Paul Sofia. Evidence has consistently shown that health and safety standards in the construction industry are inadequate. The conclusions of the enquiry are expected to result in substantial pressure for reforms within the construction sector and the field of occupational safety and health at work.

The implementation of the EU directive on adequate minimum wages and its requirement to formulate national plans to increase collective bargaining coverage are likely to affect the trade union movement in Malta. Timely and accurate statistics on collective bargaining coverage in Malta are not available, and in many sectors, there is little or no collective bargaining. Trade union membership has not kept pace with employment growth.