GWU dubs it ‘harsh’ on workers, while UHM claims budget is reasonable
Matthew Vella
Malta’s main trade unions yesterday gave totally divergent viewpoints of Tonio Fenech’s budget, in initial reactions which sent both the General Workers Union and the Union Haddiema Maqghudin back into the trenches.
GWU secretary-general Tony Zarb dubbed it “harsh”, saying workers have already been impacted by the hike in utility rates, but that government was burdening workers and their families even more.
“It’s a harsh budget because it will leave workers burdened with more measures. Together with the utilities hike, they will transpire into more difficulties and suffering for workers, pensioners and their families,” Zarb said.
The union chief said Tonio Fenech had effectively “sent into crisis” every low and medium-income family, without even providing prosperity for industry or the creation of jobs.
“For the GWU, workers are going to be worse off than they have been in the past months, because the increase in the electricity and water bills, the cosmetic changes in income tax and the increase in the price of fuel, will be the main factors that will continue to send families into crisis,” Zarb said.
He added that the increase in the cost of living allowance was not enough for the rise in utility bills and fuel price. He predicted a rise in the cost of living in the months to come due to the measures.
“The majority of the GWU’s proposals for the easing of the burden on workers, pensioners and families, and for the creation of industrial growth, have been ignored,” Zarb said.
“Only two social proposals, such as the tax rebate for women returning to the workplace after raising their children, and incentives on alternative energy, were picked up by the government. And the incentives on alternative energy were not even spread out widely enough.”
On the other hand, the Union Haddiema Maqghudin said the budget was a balanced one, which had eased the burden on families while safeguarding jobs, welcoming the increase of €4.08 a week in the cost of living allowance.
“We believe the pre-budget consultation has been effective, contrary to what happened with the utility bill increase,” secretary-general Gejtu Vella said. “And it was effective because government heard what the UHM was proposing in the MCESD meetings as well as when it addressed the prime minister and finance minister directly.”
Vella said the budget had been cautious, considering the international economic situation.
“Government did well in postponing its decision for a surplus in 2010 to 2011. This budget is aimed at sustaining the economy and maintain its rhythm, despite the predicted slowdown and the ravages of the international economy.”
Vella highlighted three particular efforts in the budget, namely the increase in consumption for greater economic growth and higher government spending to increase economic activity; incentives for the tourism sector; and fiscal incentives to help workers, particularly women.
“The revision of income tax bands will provide a slight respect from the impact of the utility tariffs, which the UHM still insists will be a burden on families and industry. This reform is complementary to the measures undertaken in the last two years. This was a main proposal by the UHM in this budget, especially after the utility tariffs were announced.”
