UĦM Voice of the Workers eMagazine issue 01

VOICE OF THE

WORKERS ISSUE 01 JANUARY 2014

Editor’s note

Contents Pathway to where?

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The Choice now

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MEUSAC Update

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MCESD Update 05 An Active Labour Market for Malta’s resilient economic advancement 06 JOBS + CIA

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CMTU 08 Jobs+ Video 09

Welcome to the first Edition of ‘The Voice of The WorkerS’.

This e-magazine, reaching you every week, will discuss different topics pertaining to the labour market; issues that affect every single Maltese worker. As these concern us, we believe that it is in our very interest to stay up-todate on what is being discussed, the challenges involved, and arguments for and against. This is the spirit of the ‘Voice of the Worker’ project. Here you will find the issues explained, and the views of the social partners (Government, unions, and employers) expressed, even on a European Union level. At the end of the day, it is the three VOICE OF THE

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social partners who have to come together and do what is best for the country, both in the short and in the long term.

We hope you enjoy the first issue, which deals with a very important subject: addressing our common future as a nation of workers. We discuss the Jobs+ initiative taken by the UĦM last year, which was endorsed by all social partners. It was a historic occasion for all of us. It will be all the more historic if we could make it work and reap the benefits. The process has kicked off. What we do depends upon all of us together.

“The secret of success, however, lies in having all the social partners pulling the same rope.

Unions, employers, government” READ MORE ON PAGE 3 1

Pathway to where?

We’ re at a crossroads. The consequences of what we decide to do will help us reap the benefits, or come back to haunt us. We do not just need to work hard. We need to work smart. We need to attract the right work to our shores. We need to have the opportunity of reaping the rewards of our flexibility, skills education and training. We would love having more money to spend at the end of the month. We need everybody working, and a society where nobody gets left behind. But studies show that we do lag behind our fellow members in the European Union. For the future, that is definitely not good news. The solution lies in the choices we make now. Jobs+ is about making the right choice.

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The Choice now It is said that when the Titanic was steadily sinking, the group of musicians who were providing the entertainment on board, seeing that nothing could be done to save the ship or themselves, decided to play the music on the open deck until they all perished.

It is the last act of bravery and dignity in the face of the inevitable.

But what if they were given a fighting chance? Wouldn’t they have acted in a different way? It would have been an utter waste if they could do something about it but preferred to just keep playing the music.

Malta is at a crossroads. This is not the Titanic. But we can arrive there if nothing proactive VOICE OF THE

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is done. Greece, Spain, Cyprus and Italy are all looking down the abyss at the moment. There are things we need to address now. Luckily, we are far from the situation facing the Titanic.

Moreover, unlike the Titanic, we still have the chance to address the issues that may place the country in a situation of lack of productivity and work which has low value added for those in employment, and no end in sight for those who have fallen into the unemployment trap.

Admittedly, in terms of employment, we are well on target to reach European Union averages by 2020. Indeed, we have almost reached these targets and we are still in 2014.

However, when one looks at the

productivity of our workforce, the skill base, as well as the level of our wages, it is evident that we are way behind the EU average; imagine how much we are below the best performers.

It has been calculated that for Malta to reach the wage levels of the European Union average, we need to celebrate the new year of 2045! That is too long, too wasteful and disastrous for all Maltese workers.

In 2012, the UÄŚM decided to start the ball rolling. It commissioned a study which could depict the real situation in Malta, and how Malta compares to the rest of the European Union. The report made worrying reading. Maltese workers are still not adequately 3

trained, and do not possess the necessary skills that would enable them to be flexible in the face of an ever-changing labour market. The amount of persons engaging in further education after their mandatory school years is well below the average for the European Union. Whereas the Maltese are working more than their counterparts in the European Union, the rate of increase in productivity is less.

In terms of productivity vis-à-vis the inceases in wage rate, we are bottom, only better than France and Italy. Member countries that had joined the European Union together with Malta in 2004, fare much, much better than Malta.

The high performers here are Romania, Latvia, Lithuania and Slovakia. Lower productivity growth in Malta is reflecting itself in lower wage growth for Maltese workers. The answer lies in increasing our productivity as a nation.

Again, the study showed that there is a direct relation between productivity and skills. Even here, Malta lies on the lower end of the spectrum. The high fliers here are Denmark, Ireland, the Netherlands, Finland, France, and Belgium, among other countries. Out of the twenty eight member states, Malta comes in seventeenth place. In the development of a really skilled workforce, Malta still trails the EU average badly, and with current trends, it will take a significant number of years to catch up, let alone be among the best.

workforce. In 2013, the UĦM proposed an Active Labour Market Policy. Rather than singing while Rome burns, Malta can roll up its sleeves, take the bull by the horns, and pursue a policy to speed up the productivity-skills process. We need to shift more to value-added products and services. The key element of productivity is not just in the quantity of our output, but also the quality and efficiency of our products and services.

The secret of success, however, lies in having all the social partners pulling the same rope.

Unions, employers, government – all working towards a common goal. The UĦM started an extensive dialogue with all the social partners. There was general agreement that the Active Labour Market Policy was the way forward. This paved the way to a historic assembly in February 2013, where all the social partners signed a declaration signifying support for the Active Labour Market Policy, now appropriately named Jobs+. The name is appropriate as this policy will lead to making work pay.

Jobs+ policy is clear. We need to make sure we have a better educated, highly skilled and trained workforce. We need to make it easy and attractive for unemployed persons to seek and retain employment, and discourage undeclared work and inactivity. More persons need to enter the workforce, especially women. The investment in our workforce will help to mitigate precarious work and increase the quality of jobs. We need a sustainable and proactive welfare system that rewards work and enterprise.

We are in a position to steer Malta on the path to long-term economic prosperity. With a more educated, skilled and trained workforce, we can really make work pay. This is the essence of Jobs+. We can really become a beacon for others to follow. The crux of the issue, however, is that we need to do this now. The social partners have made a clear choice. Now, we need to act. What the UĦM started has become a national effort. We all deserve to be better off as a nation. So do our children.

The UĦM did not stop at just taking a snapshot. It was clear that Malta needs to speed up the process. It went on to propose ways of how Malta can emerge from this situation by using and developing the strengths of its VOICE OF THE

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MEUSAC Update The Malta-EU Steering and Action Committee (MEUSAC) was first set up in 1999 when Malta started to negotiate its accession to the European Union. It was the main structure for Government to consult with stakeholders on the negotiations then taking place.

MEUSAC was reactivated in 2008 and entrusted with 3 main tasks: • Consultation on EU Policy and Legislation • Providing technical assistance on EU Funding • EU Information MEUSAC serves as a focal point for Government to consult with the political parties, constituted

bodies and civil society on proposals for new EU laws as well as on their implementation in Malta. Consultation takes place in the Core Group which discusses issues having national implications, in the nine sectoral committees as well as during open consultation sessions that target a wider spectrum of Maltese society.

MEUSAC also provides personalised assistance and support to Local Councils and Non-Governmental Organisations (NGOs) in the practical aspects related to EU Funding opportunities. In 5 years, MEUSAC

has assisted local councils to apply successfully for 203 projects representing a total value of almost €21 million.

MEUSAC is also the government entity responsible for the dissemination of EU related information. Besides providing information through the media, MEUSAC officials regularly reply to queries from stakeholders and the general public on EUrelated matters ranging from the individual’s rights as an EU citizen to EU funded opportunities.

MEUSAC was the national contact point for the European Year of Citizens 2013.

MEUSAC 280 Republic Street, Valletta VLT 1112 Tel: +356 2200 3315 • Fax: +356 2200 3329 • Email: info.meusac@gov.mt www.meusac.gov.mt

MCESD Update The Malta Council for Economic and Social Development (MCESD) is an advisory Council that issues recommendations and opinions to Government on matters of national relevance.

MCESD aims to be the most effective catalyst between Government and Social Partners.

The Jobs+ initiative was endorsed by all Social Partners and Political Parties over a year ago. Wide support enhances the possibility of successful implementation of this initiative. The UĦM also held meetings on the Active VOICE OF THE

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Labour Market Policy (ALMP) and the Jobs + initiative with MCESD sub committees namely the Gozo Regional Committee and the Civil Society Committee.

Active Labour Market Policy does not only activate the inactive in the labour market but it works to promote the development of skills of the current labour force. Together with addressing employment issues such policies also have a positive ripple effect on the Maltese economy. The ALMP together with other initiatives taken by Government will surely help to alleviate the unemployment issue.

It is pertinent to point out that the rate of students who continue to study following secondary school is still extremely poor and the participation of women at work is among the lowest the EU Country States. The Education attainments level is therefore another very important factor for explaining the employment rates between different groups in the labour force. Activity rates clearly show that generally they are higher for higher educated people and this results in them being more economically active. Thus the importance for young people to maximize 5

their professional working lives by engaging in employment as soon as possible and staying employed.

As stated above, parenthood is one of the main factors underlying gender activity and employment gaps. This because women are more involved in childcare, parenthood is more likely to have an impact on their employment rates than on those for men; especially when child care centres are lacking or are too expensive. The longer women are out of the labour

market or are unemployed, the more difficult it will be for them to find a job in the long term. All the Social Partners in Malta welcome Government’s initiative and determination to offer mothers the opportunity to send their children to Child Care Centres when more such Centres are available for free.

MCESD welcomes UĦM’s initiative to prepare a report that is the foundation stone for our country not only in creating new jobs but mainly in enhancing the quality. There is certainly more

need for job creation and while focusing on the absorption of new graduates, there is a more urgent need to involve the private sector in the re-training of workers and to encourage students to continue studying after finishing secondary school.

All the Social Partners at MCESD have sent a signal of maturity when endorsing the UĦM’s ‘ Job Plus’ proposal and it is now expected that the discussion goes on until the quality of work is improved while eradicating the threats of precarious employment.

An Active Labour Market for Malta’s Resilient Economic Advancement Dynamism, mobility, flexibility and productivity stand at the heart of the European Union’s efforts to uplift the burdens currently placed upon Europe’s workforce and pension systems as they continue to face the troubles of an ageing population. In this light, the Malta Chamber of Commerce, Enterprise and Industry, as a member of the recently appointed Jobs+ committee, focuses upon the need to establish a job rich recovery with a labour market that is mobile, dynamic and open, as it puts forth its recommendations to the drafting of a National Employment Policy which is to be drawn up by this same committee. Consistently, the Malta Chamber has stood in favour of the Jobs+ document as

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it identified itself very closely with various recommendations it contained. Of particular prominence was the need for a greater resource investment towards the alleviation of skills which ultimately shapes Malta’s workforce. Nonetheless, the Malta Chamber continues to stress that the availability of skills is only part of the equation.

The importance of ensuring efficient working practices which are aligned to the prevailing business’ requirements to ensure that growth is both resilient and sustainable.

Strengthening the links between industry and academia also stands at the forefront of the Malta Chamber’s foremost

objectives, as also does the continued support towards further labour market reforms in an effort to improve local businesses’ productivity, mainly through enhanced job creation, employment participation, and smoother labour market transitions. Assisting the Jobs+ committee with the formulation of schemes and initiatives is indeed a requisite for the Malta Chamber as its mission is to create favourable economic conditions to the advantage of local businesses and that of the wider community. Believing in the merits of an active labour market policy, whilst supporting all social partners agreeing with this way forward are also key intents of the Malta Chamber.

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CMTU The Confederation of Malta Trade Unions – C.M.T.U. immediately responded positively to an ambitious project such as JOBS+. Being the C.M.T.U.’s largest affiliate, the UĦM’s initiative has been pleasantly welcomed as it is definitely in line with the Confederation’s social and economic agenda. This perfectly complements all national efforts to work for more economic growth and the creation of more jobs. The C.M.T.U. has also decided to actively contribute towards the project’s progress since the outcome of such a big

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William Portelli - President project can in the end help to provide more jobs, enhanced security, better education and training whilst avoiding social exclusion. The result of such a project together with its effective implementation can assist to maintaining people in jobs with robust income and to ensure protection to workers and pensioners. It can also propose appropriate training program to address skills mismatch, update skills, boost female employment and serve as guidance for investment in new resource to address areas which may still be lacking effective organizational and financial support.

In full support to the project, the CMTU, as part of its budget proposals for 2014 has also proposed to extend financial support to Jobs+ to further enable assistance for research on labor market needs. The CMTU reiterates that special focus should also be made on vulnerable categories of society whether it is the business or the worker and his family. Maintaining high standards of living can be achieved by simply striking the right balance when distributing wealth and JOBs+ could just be the start for all stakeholders involved to work collectively for a renewed economic and social agenda.

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Initiatives at European Union level There are many initiatives being undertaken at European Union level that may be of interest to you. These include conferences, information documents, tools, as well as online fora. This information being compiled

by CIA Representation office in Brussels (Confederazione Italiana Agricoltori), who are partners in this project, will help you become aware of what is happening at European Union level, such as how the issues are being discussed, as well as opportunities for participation.

DOCUMENTS

The ‘Agenda for new skills and jobs’ The initiative ‘An agenda for new skills and jobs’, within the Europe 2020 employment strategy, aims to support the full employment goal of the Lisbon Treaty. In a context of growing challenges the report questions current approaches, calls for increased policy learning amongst EU Member States and argues that there is room for improvement in employment in Europe and emphasizes the importance of improving access to education, developing more transversal skills and balancing job security and flexibility.

Here is available the video presenting the ‘Agenda for new skills and jobs’ featured by the EC: www.youtube.com/watch?v=gDTnhtrw2Q8 The EC report ‘New skills and jobs in Europe: Pathways towards full employment‘ is available at the following link: ec.europa.eu/research/social-sciences/pdf/newskils-and-jobs-in-europe_en.pdf

European Tool for job hunters, employers & educators ESCO PORTAL is the multilingual classification of European Skills, Competences, Qualifications and Occupations. It identifies and categorises skills and competences, qualifications and occupations relevant for the EU labour market and education and training, in 22 European languages. The system provides occupational profiles showing the relationships between occupations, skills, competences and qualifications. ESCO has been developed in an open IT format and is available for everyone to use free of charge.

One of the resuloting tools implemented thanks to the classification developed by ESCO is AGRIPASS a platform for matching skills to agricultural jobs to aid worker mobility. This tool shows how sectorial specific skills/competence within agriculture can be matched to the skills/competence needed by agriculture employers across the EU, so as to enhance job market efficiency.

ESCO PORTAL: ec.europa.eu/esco/home

EVENTS

AGRIPASS platform www.agripass.eu/page.aspx?uid=1206 CEDEFOP, (the European Centre for the Development of Vocational Training) supports development of European vocational education and training (VET) policies and contributes to their implementation.

CEDEFOP website: www.cedefop.europa.eu/EN/Index.aspx Social entrepreneurs: Have Your Say! The European Economic and Social Committee and the European Commission are co-hosting a major participatory event on social entrepreneurship that will be held in Strasbourg, France on the 16th-17th of January 2014. An Interview of Ariane Rodert (Sweden member of the EESC) made by Martin Siecker (President of the Section for the Single Market, Production and Consumption (INT) within the EESC) presenting the Conference, is available at the following link: www.eesc.europa.eu/?i=portal.en.videos.29938 www.eesc.europa.eu/?i=portal.en.events-and-activities-social-entrepreneurs Second Green Skills Forum The GREEN SKILLS AND INNOVATION FOR INCLUSIVE EMPLOYMENT GROWTH FORUM will be held in Paris on the 14th of February 2014 www.oecd.org/innovation/greenskillsforum2014.htm VOICE OF THE

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Video

UNION ÓADDIEMA MAGÓQUDIN (Malta Workers’ Union) Dar Reggie Miller, St Thomas Street, Floriana, FRN 1123 - Malta Tel +356 21220847 - +356 21234801 - +356 21236484 • Email info@uhm.org.mt www.uhm.org.mt Operational Programme II - Cohesion Policy 2007-2013 Empowering People for More Jobs and a Better Quality of Life Project part-financed by the European Union European Social Fund (ESF) Co-financing rate: 72.25% EU, 12.75 MT, 15% Private Funds Investing in your future VOICE OF THE

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