(Adds PN's statement)
Labour leader Joseph Muscat said today that a living wage shoud be a voluntary yardstick established as a means to raise the living standards of the workers.
He was speaking at a business breakfast organised by the Malta Employers' Association during which MEA officials said the introduction of a living wage was not considered feasible in current circumstances.
"The living wage may work in the interests of companies that depend on domestic demand, but the price that the rest of the economy might have to pay will outweigh such benefits," MEA Director-General Joe Farrugia said,m quoting a study by the association.
The living wage is calculated on the necessities of the employee to enjoy a basic standard of living. A study by Caritas earlier this year found that a weekly wage considered sufficient for a basic standard of living for a family of four was €314. In contrast, the minimum wage is €152.
Mr Farrugia explained that it was a matter of concern that some people had low salaries. However a balance had to be struck between ensuring the basic standard of living and competitiveness. The minimum wage, he said should be sufficient for an adequate standard of living.
A distinction had to be made between a wage and social benefits, and he cautioned against the creation of grey areas between what constituted a salary and what constituted social benefits.
"Employers do not pay social benefits," Mr Farrugia remarked.
In considering a living wage, he added, several parameters had to be considered. For example, would it be calculated on the individual worker's income, or the family income? Would the living wage apply to particular sectors of the economy, of across the board? Would it be regional, as was the case in the UK?
Dr Muscat praised the MEA for having taken the initiative to discuss the living wage, even before the trade unions.
"The living wage is a means to an end, and the end is that of raising living standards in the country, Dr Muscat said.
He acknowledged that there could be different approaches towards the common aim of raising living standards. It was important to have a healthy debate on the living wage or any other alternative.
The living wage, however, helped to promote social mobility and purchasing power. People would not be simply living at subsistence levels.
The living wage, he said would not be established by legislation but it would be a voluntary benchmark established by social consensus.
"I am here with an idea and an open mind, asking you to join forces with me. I am ready to change my position as long as you too are prepared to shift yours towards the common goal of raising living standards," Dr Muscat said.
PN STATEMENT
The Nationalist Party said in a statement that Dr Muscat was continuing to confirm he did not have a policy on employment by making proposals and then withdrawing them, such as he had done today with the living wage proposal.
The proposal, the PN said, was a voluntary one and depended on whether employers wanted it for their workers.