Today several organisations and individuals launched the Campaign for a Decent Minimum Wage. The main proposal being put forward by the Campaign is that the minimum wage should increase by 3.5% for three consecutive years, in addition to the COLA increase.

The organisations participating in the Campaign are: Aditus Foundation, Alleanza Kontra l-Faqar, Caritas, Forum Bormliz, Integra Foundation, Koperattiva Kummerc Gust, Malta Humanist Association, Malta Microfinance, Mid-Dlam ghad-Dawl, Millennium Chapel, Moviment Graffitti, Paulo Freire Institute, Peace Lab, The Critical Institute, Third World Group and Zminijietna – Voice of the Left.

The spokesperson said, "we strongly believe that increasing the minimum wage is an act of social justice which will lead to a fairer distribution of wealth and resources. It is a worker's basic right to be paid decently for his/her work."

They added, "currently, the minimum wage for people over 18 years of age is set at €4.20 per hour, from which national insurance is subsequently deducted. This is clearly not enough to allow the families of the lowest paid workers to meet their basic needs, especially considering the ever increasing cost of living such as rent and food, as clearly evidenced by the Caritas `basket of goods' report."

"According to the economist Karm Farrugia, econometric data related to Malta's economic performances suggest that, given the positive performance in the past few years, our economy can sustain a 10 to 12% increase in the minimum wage. With this increase, the minimum wage enables workers with dependents to meet their basic needs. To prevent tremors, this increase could be spread over three years," the Campaign organisers said.

"A regular review of the minimum wage rate should be made mandatory to ensure that it meets the amount required for a dignified living."

They said, "we believe that raising the minimum wage will be beneficial to workers as well as the economy as a whole. There is minimal risk that jobs will be lost as a result of this measure. The main sources of foreign investment are not attracted to Malta by the low remuneration, and the construction and tourism industry will not move elsewhere if wages are increased."

"With regards to the manufacturing industry, the Government might consider fiscal and other incentives that would offset possible effects that a minimum wage increase may have on the attractiveness of Malta to such industries. This applies also to small businesses that might be affected by the increase."

The Campaign said that an increase in the minimum wage will:

"lead to a general increase in wages, especially in the lower-income brackets. The latter would have an overall positive effect, since wages in Malta are generally low.

incentivise people to work

decrease worker turnover and enhance productivity

have a positive domino-multiplier effect, since it will result in increased spending, thus leading to a greater circulation of money in the economy."

The Campaign for a Decent Minimum Wage went on to say that it believes that it "is the Government's role to ensure that the minimum wage is a decent one. A decision about the right of workers for a decent life cannot rest on an agreement among the social partners, as it risks being vetoed by few groups on the basis of their narrow and short-term interests."

The organisations and individuals involved in the Campaign for a Decent Minimum Wage said that they will be holding awareness-raising events, discussions, meetings and other initiatives related to this subject in the coming months. "We invite all organisations and individuals who believe in social justice to join the Campaign."

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