The Malta Employers Association has warned against populist and unsustainable proposals by politicians after Opposition Leader Alex Borg floated the idea of a 4-Day working-week to government employees. The MEA has also warned that as Malta approaches a general election, the private industry is experiencing an acute shortage of labour-supply.
The proposal is obviously out of touch with the economic reality not to mention the issues with bloating and lack of efficiency in the government bureaucracy. The MEA also underpinned that productivity should be considered as determining factors when assessing economic policies of these type.
The MEA’s press release is being reproduced below.
Political Parties Urged to Avoid Unrealistic Proposals Amid Worker Shortages
As the islands approach a general election in the midst of an acute shortage of workers, the Malta Employers’ Association (MEA) calls on political parties to remain vigilant against unsustainable populist promises.
The Association is following developments closely and has noted proposals for more favourable working conditions in the public sector. These risk further entrenching a two-tier system, particularly following the government’s commitment to match the second-pillar pension contributions of its employees.
By its nature, the public sector is not subject to the commercial pressures that drive efficiency and innovation in the private sector. As Malta-based undertakings strive to compete in the global marketplace, it is vital that national policies strike a balance, ensuring the public sector does not become a shelter for inefficiency or inflexibility at the expense of the country’s competitiveness.
The MEA is concerned that widening disparities in working conditions could erode morale within the private sector, leading to a further loss of talent from productive industries—ultimately harming Malta’s competitiveness.
Other proposals for flexible working arrangements appear to give insufficient weight to potential productivity losses. In the MEA’s view, such proposals are fundamentally unsustainable: when productivity declines, more labour is required to maintain the same level of service and output. In the current climate of acute worker shortages, these measures are impractical and risk exacerbating supply-side pressures—almost inevitably increasing reliance on imported labour. This would run counter to national policy objectives aimed at ensuring sustainable population growth.
Experience from other EU countries illustrates the risks of implementing populist work policies without due consideration for economic realities. In some cases, trials of a four-day working week led to significant productivity losses and operational challenges. These policies were subsequently reversed or modified after failing to deliver the expected benefits and placing undue pressure on both employers and employees.
Proposals that disregard the realities of productivity and labour-market dynamics risk creating unsustainable working conditions and false expectations that will ultimately harm both the workforce and the broader long-term national interest. The Malta Employers’ Association firmly believes that employment policies must promote equity and cohesion across all sectors to ensure a fair and robust labour market.
Website Editor
Historian and Publisher
Leave a Reply