MEA Warns Alex Borg’s Four-Day Work Week Proposal Will Lead To More Foreign Workers
The Malta Employers’ Association (MEA) warned that PN leader Alex Borg’s proposal for a four-day work week could ultimately result in an increase in foreign workers.
The MEA argued that a four-day work week will result in a decline in productivity and a consequent need for a larger workforce to maintain a stable level of service and outputs.
Since Malta’s unemployment levels are very low, they warned that this will “almost inevitably lead to greater numbers of imported workers”.
“This would run counter to current national policy objectives aimed at ensuring sustainable population growth,” the MEA said.
Moreover, they MEA warned that Borg’s proposal to initially test the concept in a number of government departments before potentially expanding it to the private sector will “intensify a two-tier system” following the government’s pledge to match the second-pillar pension contribution of its employees.
“By its nature, the public sector is not subject to the commercial pressures that drive efficiency and innovation in the private sector,” the MEA said.
“As Malta-based undertakings strive to compete in the global village, it is vital that national policies reflect a balanced approach, ensuring that the public sector does not become a shelter for inefficiency or inflexibility at the expense of the country’s competitiveness.”
“Malta Employers is concerned that the disparity in working conditions could erode morale within the private sector, leading to further loss of talent from the productive private sector, to the detriment of Malta’s competitiveness.”
The MEA also warned that the four-day week hasn’t worked out in other EU countries who have tested it in practice.
“In certain countries, trials of the four-day working week resulted in significant productivity losses and operational challenges,” they said.
“These policies were subsequently reversed or modified after failing to deliver expected benefits and placing undue pressure on both employers and employees.”
“Proposals that disregard the realities of productivity and labour market dynamics risk creating unsustainable working conditions and false expectations that will ultimately harm both the workforce at large and the broader long-term national interest.”
Cover photo: Alex Borg