An ever-changing labour market on the global sphere invokes transformational change, particularly through harbouring innovation in technology, work flow and work form. Doing this is essential for the creation of new, high quality job opportunities. To mark its 50th year anniversary, the Malta Employers' Association chose the future of work as the central theme, particularly due to the fast way in which this sector is changing.
In his address during the 104th Session of the International Labour Conference, Maltese Employers' Delegate Joseph Farrugia made this observation in the light of the need to address current issues related to work and the labour market. According to Farrugia, this should be the main focus of discussions amongst International Labour Organisation (ILO) partners and its members on the various national levels.
The Report of the Director General, elaborating on 'The Future of Work Centenary Initiative' is an attempt to tackle ongoing issues within the world of work. The report expounds upon four major focus areas – work and society, good quality jobs for all, the organisation of work and production and the governance of work form.
All of these four main themes are intended to initiate the social dialogue needed to move forward. The aim is that of looking into traditional perspectives surrounding these themes in order to move on and be able to draw new and more effective solutions to current labour market issues.
Maltese employers are in favour of diversifying employment models as well as updating present employment and industrial relations legislations. One of the employers' top concerns is inter-union conflict, or the ever-rising rivalry amongst trade unions, continuously trying to out-bid each other in offering their members more benefits rather than considering the mutual benefits of the worker and the enterprise. This compromises transparency and long-term sustainability. In addition, the employers pointed out the need to reform the Industrial Tribunal.
Malta's current employment situation is quite positive overall. The island has one of the EU's lowest unemployment rates as well as an increasing labour participation and increasing demand for labour that is being met by an influx in foreign labour (currently about 13% of the labour force.) Malta's economy also managed to remain stable in the face of the recent global economic crisis and achieved a GDP growth of 3.4% in 2014, outperforming most European economies.
Despite these positive factors, fierce international competition as well as dependence on volatile industries such as tourism that are mostly subject to external factors leave no room for complacency and Malta needs to uphold and strengthen its current efforts.
The European Commission has also issued country-specific recommendations for Malta that would allow it to improve its social and economic position and make its condition more sustainable in the long term. Malta now needs to intensify its efforts at carrying out fiscal and pension reforms, boosting the education system and improving SME's access to funding, particularly in view that over 90% of Malta's commerce depends on such enterprises.
In fact, this year's conference witnessed an important development in this regard through including a committee on SMEs and employment creation based on the 1998 recommendation for job creation in SMEs.
This is already a significant step forward as it clearly shows that social dialogue in Malta is not restricted to large or multinational companies, but is taking into account the reality of the island, where over 90% of jobs within the private sector are sustained by companies employing less than 250 employees.
Another important aspect that was taken into account in the Director General's report was that "lifelong attachment to a single enterprise has become outdated in today's world of work," in link with the initial statement that the needs of the global labour market are changing. The report also states that due to this, the working relationship is taking non-standard forms that should not be underestimated or dismissed as providing lower quality job opportunities.
The report outlines that work forms including fixed-term, part-time and flexible contracts are capable of increasing participation rates on the labour market and can also provide high quality employment.
In the face of all these changes and issues as well as other events that are dominating the wider Mediterranean, European and international background, Malta needs to embark on a mission to provide good quality jobs for all, even for those who have permeated the Maltese society from other societies where it was not possible for them to achieve a better quality of life.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
