Employers slam Alex Borg's four-day week as 'unrealistic populist proposal'
MEA warns 'unsustainable' ideas could damage both employees and long-term policy goals
The Malta Employers Association has slammed the PN leader’s proposal for a four-day working week as an “unrealistic populist proposal” pointing at an acute shortage of workers.
In a statement following Alex Borg’s remarks, the MEA called on political parties to “remain vigilant against unsustainable populist promises”.
Earlier this week the opposition leader said he was willing to trial a four-day working week in certain departments within the public sector before rolling it out across the private sector promising incentives for businesses. This is not the first time the PN had made such a proposal but in 2022 Finance Minister Clyde Caruana had ruled out the suggestion saying this could only happen once worker and productivity skillsets improved.
“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,” MEA director general Kevin Borg said, adding that employment policies “must promote equity and cohesion” across all sectors.
The MEA warned that implementing more favourable working conditions in the public sector risked further intensifying a two-tier system in view of the government’s commitment 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. 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,” Borg said.
He expressed his concern that the disparity in working conditions “could erode morale within the private sector” leading to a further loss of talent from the productive private sector, to the detriment of Malta’s competitiveness.
The MEA cautioned that proposals for more flexible working arrangements are “unsustainable”, arguing they risk worsening Malta’s labour shortages, while reduced productivity would create a demand for more workers which can only be met by increasing reliance on foreign labour. This, it added, would undermine national policies aimed a t ensuring sustainable population growth.
They also pointed at four-day week trials in other EU countries which led to “significant productivity losses and operational challenges”.
No EU country has adopted a blanket four-day national work week with reduced total working hours for all employees, but Belgium stands out for legislating the right for workers to condense the standard week into four days without loss of pay, typically by working longer hours per day.