NEWS | Wednesday, 18 June 2008

Social partners defend overtime status-quo

Charlot Zahra

In Malta, both Unions and employers have heaped praise on the political agreement reached on the Working Time Directive (WTD) last Monday week at an EU Social Policy Ministers meeting.
The draft proposal provides for a working time capping set at a maximum of 60 hours weekly, averaged over a three-month period extendable through a collective agreement.
A statement issued by the Social Policy Ministry last Wednesday week said: “The Maltese position is that this should be set at 65 hours over a three-month period. There is the possibility of a second capping set at 65 hours over a three-month period where inactive on-call time is considered as working time and there is no collective agreement.”
However, the European Trade Union Confederation (ETUC), of which both the General Workers’ Union (GWU) and the Confederation of Malta Trade Unions (CMTU) are members, has described this agreement as “contrary to the interests of employees”.
ETUC General Secretary John Monks in a statement described the agreement on working time as “highly unsatisfactory and unacceptable to the ETUC”.
“We will now be working with allies in the European Parliament,” Monks said.
Asked how could Maltese trade Unions reconcile their position with that of the ETUC, GWU Secretary-General Tony Zarb defended the GWU’s position on the WTD.
“The GWU, as an active member of the ETUC, understands and appreciates the position that the ETUC took against this Directive, especially with regard to the opt-out clause,” he said.
“On the other hand, the ETUC should understand the positon that the GWU took in view of Malta’s small size and the country’s particular circumstances.
“The GWU considered the fact that workers should be given every opportunity to strike a balance between working time and resting time with the family.
“It also undertands that there are circumstances where employees rely on overtime to cover their financial commitments.
“Therefore the GWU believes at present, it took the best decision in the interests of Maltese workers because this will also help to create more investment which in turn would create more jobs in our counrty,” Zarb told Business Today.
Asked whether the dependence of Maltese workers on overtime was being institutionalised by this agreement, and whether it was a reflection of the relatively low standard of living that Maltese workers enjoy when compared to other workers in the EU, Zarb said: “In a globalised world, workers’ conditons, both in the EU as well as in Asian countries, put a larger responsiblity on us as a Trade Union.
“Therefore we believe that workers should contribute with proper safeguards on the maxiumum working hours that they are willing to work. With this in mind, together with employers and the Goverment, we should ensure that the standard of living is kept and does not fall down,” he insisted.
On his part, UHM Secretary-General Gejtu Vella took a more philosophical approach to the divergence with the ETUC on the WTD. “Maltese Trade Unions look forward to the day when workers’ salaries are strong enough that their standard of living does not fall down without the need of overtime or part-time job.
“However our economic level and social support systems are still at a level where we need to work more in order to enable Maltese workers to do away with working overtime and seeking part-time jobs to sustain their standard of living,” he insisted.
On the question of the institutionalisation of overtime, Vella said: “Overtime is not a right, but a necessity; a necessary evil. Every company asking its employees to work overtime does not do it out of pleasure but out of necessity. On the other hand, workers take overtime as an opportunity to increase their salary.
“While the UHM will work so that there is a balance between work and family life, we have to ensure that companies can function effectively, while workers take every opportunity that can arise out of overtime.
“Our country has now evolved and is now comparing itself with countries which are already EU Member States. Until then, the comparison that we used to make was comparing a party in Government with another party.
“Since our country joined the EU four years ago, it is clear to everybody that our country still has make significant progress to catch up with fellow EU Member States,” Vella told Business Today.
On his part, Medical Association of Malta (MAM) Secretary-General Martin Balzan said that the doctors’ association agreed with the ETUC’s position that “overall EU workers have lost a lot of EU protection.
“Workers in EU countries governed by unfriendly national legislation and right-wing policies, along with non-unionised workers have lost a lot of protection from EU Directives.
“MAM however disagrees with ETUC in wanting a complete removal of the opt-out, while in Malta unions leave their members free to work as much overtime as they like,” Balzan told Business Today.
On the question of the institutionalisation of overtime as a result of the agreement, the MAM Secretary-General said: “The Maltese economy is an economy based on services, and with a very seasonal tourist industry. So dependence on overtime is mainly due to economic reasons.
“Furthermore the Mediterranean mentality is to have individual choice, and not to prevent people from working in a ‘big brother’ fashion. However with regards to doctors, working hours need to go down, as too many doctors are working long hours,” he continued.
From the employers’ side, Malta Hotels’ and Restaurants’ Association (MHRA) President Kevin De Cesare lambasted the ETUC’s position on the revised WTD.
“Our economic model is highly susceptible to fluctuations in labour demand and supply and consequently it was impossible to advocate a one-size-fits-all solution as pushed forward by the ETUC.
“The Maltese trade unions have taken recognition of the vital importance of the tourism and hospitality industry for the overall well-being of the Maltese economy in terms of employment generation and sustainability of flexible work arrangements in particular for female employees, new entrants on the labour market and students in need of part-time income during the summer vacation period.
“In this regard, the position of the Maltese trade unions was a commendable one whereby their sole interest throughout the process was to safeguard the interest of the Maltese workers and the tourism industry alike, not least by not hindering the thousands of employees directly and indirectly dependent on the hospitality industry from earning more income if they so desire and are physically fit to work longer hours and/or shifts.”
De Cesare also disagreed with the notion that the dependence of Maltese workers on overtime was being institutionalised by this agreement.
“One should look at this agreement within the context of the present changes in the labour market and working patterns. This agreement is taking into account the need for flexibility within the context of the business needs and the workers’ need to improve their standard of living,” he said.
Likewise, Joe Farrugia, the Director-General of the Malta Employers’ Association (MEA), said: “It is correct for local unions to have divergent opinions from the ETUC if this promotes the interests of their members. It is a fact that in Malta, many employees would not like to have a limit on the number of hours worked, and this is reflected in the unions’ position.
“I can never agree that overtime should be discouraged, nor do I subscribe to the opinion that there is a dependence of Maltese workers on overtime,” he added.
“Overtime provides flexibility to the company in situations where the amount of work available is temporarily beyond the capacity of the labour force to produce.
“It is up to management to offer it in such circumstances, and if the amount of overtime exceeds the average 48 hour limit, the employee has the option whether to accept it or not. I do not see why this option should be removed.
“This is not a reflection of the relative standard of living with other EU countries. In reality, the Maltese workers’ standard of living is comparable to that of many EU countries.
“On the other hand, countries like the UK, which do have a better standard of living than Malta, also oppose measures to limit the amount of overtime that can be worked. This is an issue of principle and work culture, not of standard of living,” Farrugia told Business Today.
On his part, the Malta Chamber of Commerce and Enterprise (COC) Director-General Kevin J Borg, said the Chamber supported the position taken by the Maltese Government on the draft proposal providing for a maximum capping of working time per week.
Borg explained that as the WTD stands, this is set at 60 hours averaged over a three-month period which is extendable through collective agreement. “The Chamber insists that Government’s proposal for this to be capped at 65 hours – instead of 60 hours – over a three-month period, could permit more flexibility without any imposition.
“The Chamber looks forward in earnest to the eventual ratification of this proposal by the European Parliament,” he told Business Today.
The COC Director-General said that the Chamber would be active in the discussion on this matter within the Malta Council for Economic and Social Development (MCESD).
“It should be left to employers and employees to strike the right balance whilst remaining flexible to reach higher competitive and productive levels which are sorely needed in the current bleak international economic scenario,” Borg said.
When asked a reaction about the WTD, a spokesperson for the Malta Federation of Industry said: “I’m sorry, but at this point the Federation does not have a position on the captioned subject. Obviously it will take some time to draw up.”

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