The site of what was formerly an old power station in Tallinn, Estonia on November 23rd was packed with more than five hundred delegates from all over the European Union to attend the annual European Enterprise Promotion Awards (EEPA) organized by the European Commission. Every year, a board of judges is appointed to decide on the best among hundreds of projects to win coveted prizes in different categories that are submitted by organizations from all over the EU.
Last May, the Association was awarded the National Enterprise Support Award which meant that it could participate in the EEPA. The project submitted was ‘The Malta Business Story Initiative‘, in which two entrepreneurs- Gianni and Katrina – set up a business and experience many typical situations faced by start ups and established businesses which are addressed by links to the topics covered by MEA TV programmes. In fact, the project includes links to more than 90 programmes, and was made available to MEA members earlier this year. This has been used to educate the public about labour and social policy issues, and also by businesses as a point of reference about matters that affect them as employers. It is also being used by many companies to train staff.
This project drew the attention of the jury and MEA was awarded a special mention as one of the foremost four projects from amongst hundreds submitted overall from EU countries. The Association had already won this recognition in 2015 with another project and no other organisation has been given an award twice in the eleven years since the EEPA has been organized. In his address to the assembly, Mr. Joseph Farrugia explained how the television programmes are educating the public and how the Malta Business Story is a useful tool for businesses which can transferred to other countries. The experience in Tallinn is recognition by the Commission of the valid initiatives that the Association is taking to support the business community in investing in entrepreneurial skills, and is an honour for Malta.
The Association expressed its thanks to the Public Broadcasting Services (PBS) for being given the opportunity to produce the MEA TV Programme which is now running in its ninth session.
The Malta Employers’ Association has launched a position paper which highlights the need for a strategic approach to address Malta’s demographic challenges in the coming years. Click here to download the Position Paper.
We are proud to introduce to you our latest project by the name of MEAtoolbox. The MEAtoolbox is a project in the form of an online supplement to our Employers’ handbook, which one can find through the MEA website. It responds to the need, often expressed by our members, of an all-inclusive, single point of reference document for Maltese businesses. This document has been supplied with information relating to the Maltese business environment and has been carefully updated with the latest data over a period of time. It covers both the entities and information that the businesses should know about and also those that would provide further assistance but are not obligatory to make contact with.
The MEAtoolbox includes a background of SMEs in Malta and the yearly activities designed for their participation such as the yearly SME week events. This online handbook supplement also outlines the schemes and incentives offered by Malta Enterprise together with a description and eligibility criteria. Another chapter in the handbook is dedicated to listing schemes and incentives to businesses provided by entities other than the Malta Enterprise. Also in this supplement, there is a chapter dedicated to aspiring business owners labelled as “Think-tank”. This chapter contains 7 inspiring steps for starting a business which prepare the person mentally before undertaking a commercial enterprise.
Another useful tool in this supplement handbook is the checklist which guides a person through the important procedures to follow, as soon as one decides to open a business. This includes acquiring licences and registering with relevant bodies amongst other things. Following the checklist, is a chapter listing all the entities authorised to issue trade licences together with a description of their licensing remit and contact information. The MEAtoolbox also contains a list of the Government Departments, Authorities, Regulatory Bodies, NGO’s and other entities which the business person may need to get in contact with at some point in the business life. The contact details of each of the number of entities in the list are clearly stated. The MEAtoolbox ends with a telephone directory of all these entities, included in one neat list, sorted in alphabetical order for the benefit of the reader. This document is equipped with an interactive table of contents which can take you to your required section in the document with just a click. The user of the MEAtoolbox has the option to search for a key word through the PDF find function.
This supplement to the MEA Employers’ handbook is available in the password protection Section: Members Area. Furthermore, the SME help-desk will make sure to keep the document up to date with any changes occuring in the business environment.
The Malta Employers’ Association is the winner of this year’s National Enterprise Support Award (NESA) through its project: “The Maltese Business Story”.
The project takes the form of a hypothetical business story, written in the Maltese language, including hyperlinks to 91 MEA TV programmes. Each TV programme includes expert advice, discussions and other visual content which will give the basic tools to a business owner to tackle certain situations in the day-to-day running of the business.
The TV programmes hyperlinked within this document feature a total of 300 business experts and provide 2,300 minutes of entrepreneurial material.
This business story is aimed to alert entrepreneurs to be well prepared and knowledgeable about various situations, which one could encounter during a business venture.
By identifying specific circumstances, giving advice and guidance accordingly and sharing best practices, this initiative is meant to help SMEs to continue investing in entrepreneurial and managerial skills.
MEA had won the 2015 NESA awards and was shortlisted to participate in the European Enterprise Awards with the project “Strengthening the Business Environment through Active Social Dialogue”. It was among four projects across the EU to be awarded a special mention duirng this event. The Assocaition will be participating in this year’s edition of the European Enterprise Awards which will be held in November in Estonia.
The MEA published its Memorandum to Political Parties, entitled: “Towards Sustained Economic Growth and Better Governance. Click here to download the Memorandum.
The MEA is alarmed at the extensive media reports that are constantly emerging, and accumulating, tarnishing Malta’s reputation as a respected EU center for financial services. No serious and credible reaction to this situation has been forthcoming from government and its various institutions.
This is extremely worrying and condemnable since at stake there is the survival of a critical financial sector that provides more than twelve thousand decent jobs, a sector painstakingly built and nurtured over years, and one on which other sectors of the economy are depending on for sustainable growth.
What appears to be negatively happening, unchecked and with impunity, is now threatening the very credibility of Malta as a viable, democratic state, a fully fledged EU member capable and deserving to attract foreign investment from decent sources. The unforgivable incompetence of the Police Commissioner who, whether through ignorance or by design, chose to look the other way when there was clear evidence of suspicious practices certainly damages the credibility of our justice system. The MEA added that, even more serious is the failure of the Malta Financial Services Authority to investigate the doubtful dealings of Pilatus Bank. This carries the danger of being interpreted as a repositioning of our financial services sector from one which is based on trustworthiness and reputation, to another which operates to serve the interests of money launderers and illicit businesses. It is well known that, up to the recent past, Malta had strict due diligence procedures which would have precluded such companies from setting up even when they requested to do so. The presence of such shady companies tarnishes the reputation of the country and the many companies operating in this sector who conduct their business in a responsible and ethical manner.
The MEA, as a responsible social partner, feels in duty bound to take a stand and voice its concern when faced with this national crisis.
Following the Annual General Meeting of the Malta Employers’ Association, Ms. Dolores Sammut Bonnici has been appointed as the new president for MEA. She takes over the reins from Mr. Arthur Muscat, who had served as president for the previous four years. Ms. Sammut Bonnici is an entrepreneur and is the Managing Director and co-proprietor of the Green Skip Services Ltd, and G.S.Rec. Ltd, dealing in industrial waste management. She has served on the MEA council for a number of years, and previous to being appointed president, was also deputy president of the MEA during the past four years.
Ms. Sammut Bonnici is the outgoing President of Malta Association of Women in Business, whose mission is the promotion of female entrepreneurship, enhancement of Business education, mentoring and business networking. As president of MAWB she has actively participated in two European projects: AMIE, (Women ambassadors for Entrepreneurship), and BREAKING GENDER STEREO TYPES, GIVE TALENT A CHANCE (Creating awareness for equal job opportunities).
She sits on the Enterprise Consultative Council, is a member of the Malta Association of Family Enterprise and of the Foundation of Human Resources Development.
The other members of the presidency team are:
Mr. Arthur Muscat – Senior Vice President
Mr. Stephen Muscat – Deputy President
Ms. Maronna Filletti – Deputy President
Mr. Matthew Sullivan – Hon. Treasurer
Mr. Norman Mifsud – Hon. Secretary
Mr. Martin Vella – Member
Malta’s private sector organisations represented on MCESD (MEA, Malta Chamber, and GRTU) jointly express their concern on the direction taken with regard to discussions on poverty and the minimum wage. The Employer Bodies believe that the country’s efforts should be targeted specifically at eradicating poverty whilst safeguarding competitiveness and long-term economic growth.
In the current economic scenario, the employer bodies believe that it is unacceptable to find certain cohorts of the population that are still beset by poverty and deprivation. They believe that it is the joint responsibly of government, politicians, social partners, employers, employees and civil society to ensure dignity for the entire population. All stakeholders have a role to play and important responsibilities to carry.
A professional report commissioned by the MCESD was recently presented to social partners. This report sheds doubt as to whether raising the minimum wage is the ideal measure to solve. The report, in fact, suggests that it would be more meaningful to use more direct and targeted action.
Besides, Malta has an extremely positive track record of wage-bargaining at enterprise level which is a rarity in the context of the EU. Through this system, wages are determined fairly on the basis of social considerations but also on the basis of productive and competitive constraints. This established and recognised structure explains why only a small percentage of the workforce in Malta earns a minimum wage.
The issue of employers is not in fact with raising the minimum wage, but rather on the spiral effect this will trigger on wages across the board and because of this, raising the minimum wage has serious consequences on national competitiveness. It is the duty of all social partners to act responsibly on this matter. All stakeholders must understand that these consequences are well understood by all. Private business is the motor of our economy and it is the private sector which finances the country’s social security system. Endangering the private’s sector’s competitiveness and the Malta’s export potential may indeed harm the very basis of our economy and with it the potential to sustain the country’s safety net.
Lip service by both the political parties on raising the minimum wage without consultation with employer representatives and pre-empting the discussion process seriously prejudices the situation and does not bode well for discussions in which the social partners have now been invited to participate. These tactics are short-sighted, irresponsible and unacceptable. Employer bodies appeal to all stakeholders to refrain from political games that risk the livelihood of employees and the country’s long-term economic and social development.
The MEA stated that the main thrust of the national budget 2017 is to alleviate the hardships faced by low income segments, namely single parent families, pensioners and minimum wage earners without adding substantial burdens on employers. Measures such as the increase in supplementary income, carer’s allowances, rent subsidies and revised thresholds for the tapering of benefits are focused on vulnerable groups. In this respect it is a positive budget. The MEA is critical of the manner in which the COLA mechanism was tampered with, as government has resorted to a repeat a precedent created by the previous administration by awarding a COLA increase which is higher than the €1.25 which should have been the COLA increase for 2017. Another major shortcoming of the budget is that the commercial energy rates were not revised downwards to make these rates in Malta on a par with those prevailing in many industrialised countries. Given the state of international oil prices, the cheap energy generated by the interconnector and the potential benefits of the new power station, this was a doable measure. The current commercial energy rates could create a serious competitive disadvantage to many companies, particularly in the manufacturing sector. The budget does not adequately address the situation at Air Malta, nor does it offer tangible solutions to the traffic situation, with the exception of the incentives for company transport. The taxes on a number of products, including construction material, detergents and toiletries will have an adverse effect on some businesses and consumers in general. Although the budget is lacking in a longer term vision for the economy, it does include some measures with future implications, amongst them the incentives for voluntary second pillar pensions, incentives for a wider diffusion of solar energy through solar bonds, and the study for the gas pipeline. Fundamentally, the budget is a statement about the state of current and projected government finances, and the fact that the deficit is projected to decrease to 0.5% in 2017, with a corresponding fall in the GDP/national debt ratio to 63% is positive in itself and a direction that should be maintained in the future.
The MEA has absolutely no objection to the recent Court ruling confirming Unions’ right to strike, that is guaranteed by the Constitution. Fundamental issues, in the industrial field, like the right to strike, should not be questioned on the basis of obvious economic damage that may derive. It is up to the Unions to responsibly utilise the drastic and powerful strike weapon.
Unions must make an objective assessment of the ultimate possible harm, including Company closures and job losses, that a strike action, under critical circumstances, may cause. It is up to the Unions to determine what objectives they set and what price they are determined to pay to achieve them. The right to strike is balanced by a right of Employers to effect lock-outs, and in both instances no wages are payable for the duration of such actions.
It is not ruled out that drastic industrial action may, in particular instances, cause irreparable harm to a Company, with dire consequences. Irreparable harm too may be caused when Unions, as it is within their right, resort to partial industrial action. An Employer too, in such circumstances, may react to defend his interests. It is also the duty of an Employer to commercially responsibly manage a company.
The MEA is of the opinion that the current industrial impasse at Air Malta should be handled by the Unions with calm restraint and by the Employer with an engaging, open and informed dialogue. It is to be kept in mind that Air Malta is not just about the Company’s employees.
