Malta Employers Call for Electoral Proposals that Drive Sustainable National Growth

Malta Employers holds 61st Annual General Meeting

Malta Employers President Ivan Refalo has called for responsible policymaking and a stronger focus on competitiveness amid rising global uncertainty and labour market pressures. Referring to a possible general election in the weeks ahead, Mr Refalo warned against short-term, populist measures, stressing that policy decisions must be grounded in reality and affordability.

Addressing the Malta Employers 61st Annual General Meeting, Mr Refalo placed strong emphasis on the importance of good governance, effective social dialogue and a balanced labour market framework to support Malta’s long-term economic resilience.

“We are in turbulent and rapidly changing times. Global developments, including the ongoing conflict in the Middle East, are disrupting supply chains and fuelling inflation, impacting employers through escalating operational costs, squeezed margins and ever more onerous regulatory obligations”, Mr Refalo said. He emphasised that these challenges require coordinated and strategic responses.

In this context, he urged political parties to safeguard Malta’s competitiveness, particularly in the context of increasing political debate ahead of a general election. “Promises need to be grounded in reality and must be affordable” he insisted.

He also highlighted growing labour market challenges, pointing to widening skills gaps, resource constraints and intense competition for talent. While acknowledging Malta’s economic resilience, he stressed that growth is bringing new pressures, particularly on human resources. He cautioned that any expansion in the public sector headcount which is non-essential, risks distorting the labour market, noting that Malta Employers has “repeatedly raised concerns about politically driven recruitment that drains the private sector from precious resources and talent.”

The President called for restraint in public sector hiring ahead of a general election, stating that “six-months prior to an election, recruitment in the public-sector should be strictly limited to necessary replacements,” in order to ensure stability and a level playing field for businesses.  

He also underlined the importance of governance and accountability, warning that recent developments risk undermining trust. “Good governance is not merely legal compliance, it is a mindset, a culture of responsibility, transparency, accountability and fairness,” he said, adding that Malta Employers strongly opposes recent changes reducing transparency obligations for public officials.

On labour market reforms, the President addressed the ongoing debate around the four-day week, noting that employer feedback does not currently support its introduction. “Our surveys show a majority of employers believe that a four-day week is unsuitable for Malta at this stage,” he said, warning against blanket measures whilst stressing that decisions on working conditions must reflect individual companies’ operational realities.

He also reaffirmed the importance of social dialogue, warning against the exclusion of employers from key discussions. In this context, the President expressed concern that Malta Employers had recently been left out of certain government-appointed technical committees related to employment and industrial relations. He stated that this was inconsistent with the principles of effective social dialogue, noting that “no discussions, decisions, or reforms relating to employment, employees, working conditions, or any matters affecting employers must take place without our direct involvement.”

In his address, Director General Kevin J Borg described the year as one of continued growth and transformation for the Association, driven by strong member engagement and objective policy advocacy. Internally, the organisation focused on strengthened governance, digitalisation, rebranding and improved communications, including a fully integrated website, increased media presence and expanded social media reach.

At the same time, he added the Association maintained a high level of member services, delivering numerous courses, events, publications and outreach initiatives, many of which were fully subscribed. New support mechanisms, such as the EU Funding Helpdesk, were launched to help businesses access funding opportunities, alongside ongoing projects like COMPASS through which the Association won the first prize in the National Business Support Awards for the second year running.

The organisation also achieved strong visibility through media activity and its long-running TV programme MEA TV, the SME Week National Forum, and a national conference on the four-day work week, reinforced the Association’s role in shaping public debate and policy.

During an Extraordinary General Meeting held before the AGM, members approved a series of amendments to Malta Employers’ statute aimed at strengthening the organisation’s governance framework. The changes further align the Association’s structures and practices with its Environmental, Social and Governance (ESG) commitments. This step reinforces Malta Employers’ ongoing focus on transparency, accountability and organisational resilience.

ENDS

27 March 2026