MEPs irk EU Commission by scrapping work opt-out clause

Maltese MEPs wanted to retain clause Members of the European Parliament are on collision course with the European Commission and national governments, including Malta, after voting to scrap controversial opt-outs from EU employment rights.

In a first reading vote yesterday, the European Parliament backed plans to ditch exemptions from EU rules on working time.

MEPs voted for amendments tabled by Socialist Alejandro Cercas with 345 votes in favour, 264 against and 43 abstentions.

Among other things the move means that an employee would not be able to freely decide to work for more than 48 hours a week if overtime is offered.

All Maltese MEPs, with the exception of Labour's head of delegation John Attard Montalto, voted against the resolution, thus supporting the government's position in favour of retaining the opt-out clause. Dr Attard Montalto abstained.

Contacted by The Times, a spokesman for Dr Attard Montalto explained that he decided to vote against the amendment to scrap the opt-out clause but abstained on the vote taken on the whole resolution.

Following the vote, the three Labour MEPs, who voted against the wishes of their group, made a short explanatory statement in which they declared they had voted to retain the opt-out clause in the interest of the Maltese workers and the national circumstances of the Maltese economy.

Joseph Muscat said one had to understand Malta's particular circumstances. Many Maltese families are experiencing a situation where they depend substantially on their overtime to pay their bills and commitments. "If we cap overtime, we would not be helping them. Instead, we would be making their situation even worse."

Mr Muscat said the Labour MEPs will continue to insist on their position even during the second reading because they believe it is a sensible one and in the best interest of Malta's workers and its economy.

Labour MP Louis Grech said some parts of the proposed directive may lead to harmful effects on the Maltese economy and introduce quite a number of complications to the employment market.

In Malta the directive will either lead companies to drive down real wages or the overall economic activity will be reduced.

This position enjoys broad consensus in Malta, including the social partners, Mr Grech added.

Yesterday's decision at the European Parliament is not final because in order to become effective, the new working time directive needs also the backing of the majority of member states. Malta is forming part of a blocking majority at council level, including large countries such as the UK and Germany that also prefer opt-outs. However, yesterday's vote might put more pressure on these member states to adopt a softer stance.

Sources close to the Maltese government told The Times that Malta would be sticking to its position in favour of opt-outs even after the vote in the European Parliament. The sources said that if Parliament's position is approved and becomes effective, the Maltese government would be incurring new costs, amounting to millions of liri, to keep providing the current level of certain essential services especially in the health sector. This, apart from the fact that workers would not be allowed to work more than eight hours of overtime a week.

According to preliminary studies conducted by the government, the sectors to be hardest hit if a limit on overtime is imposed would be the health, tourism and police services.

It is estimated that the bill for providing health care if the opt-out clause is not retained will increase by Lm2 million a year. The number of senior registrars in hospital will have to be doubled and an increase of 30 per cent in junior doctors will be needed. The police force will also need more people in order to keep up with its commitments and the tourism sector, which is a very seasonable industry, will have to incur extra costs.

The Parliament's decision also came under the Commission's fire. A spokesman told journalists in Brussels the Commission did not agree with the European Parliament's vote.

Under the Parliament's proposals, governments would lose current opt-outs and the time workers spend on call will be considered as part of the 48-hour week. When employers seek greater flexibility, calculating working time over a 12-month period, the arrangement will be subject to stronger control by trade unions.

Following yesterday's vote, the amended draft directive as agreed by the European Parliament will now be sent back to the Council of Ministers for further discussions. The proposed directive is expected to be discussed again at the next Employment and Social Affairs Council to be held in the beginning of June.