Malta’s Trade Unions Want To Meet Government To Propose New COLA Mechanism
Malta’s trade unions have come together to demand a meeting with the government to discuss a new cost of living adjustment (COLA) mechanism.
The Forum Unions Maltin, General Workers Union, Confederation of Malta Trade Unions and the UĦM Voice of the Workers are taking the initiative following a proposal which will see COLA rise to between €9 and €10 during the upcoming budget.
The unions said that their proposal will be able to ensure that the mechanism will be able to respond effectively to the needs of both workers and employers.
It will also address certain anomalies, which they said could create major problems in the future.
The mechanism was established in the early 1990s following an agreement by social partners. It has so far fluctuated between a low of 58c a week (2015) and a high of €5.82 a week (2010).
As a result of the ongoing global cost of living crisis, it is set to increase substantially for the first time in years.
Still, a majority of Maltese businesses expect to increase their prices to cope with the upcoming cost of living adjustment.
A survey by the Malta Employers Association among 330 employers, reflecting around 400 companies, found that only 28% expect to absorb the costs of the COLA themselves.
Half of them will partially increase their prices to cover the increase in cost, while 22% will pass the entire cost to consumers.
Should a new COLA mechanism be introduced?
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