The Malta Chamber on Monday welcomed the new Labour Migration Policy, however, it warned that for the strategy to be effective, fewer people needed to be employed in the public sector.

The policy was unveiled for public consultation earlier this month and will remain open until February 9.

In an interview with Times of Malta, Employment Minister Byron Camilleri said the aim of the policy is to give authorities more control and ensure that foreign workers are brought to Malta only in the sectors that are needed.

In a statement on Monday, the Malta Chamber said the policy included several recommendations that aligned with its vision for sustainable economic development.

However, the chamber warned that "for the policy to be effective the labour market must be strengthened through a reduction in public sector employment, more incentives for upskilling and reskilling, and more support for investment in digitalisation to improve productivity".

All policies need to be aligned and fully integrated into the Malta Vision 2050, to ensure a holistic and long-term strategy for the nation’s workforce and sustainable economic growth, it added.

The chamber added the policy's success depended on transparency in recruitment and data, along with efficiency and enforcement: "any abusive behaviour from both employers and employees should be addressed and brought to justice without any delay".

It listed a series of recommendations which it said required clarification and adjustment to ensure their effective implementation:

Minimum termination rates per firm: it is not clear how termination rates will be calculated in the case of companies operating under a group structure. It is also unclear - when it comes to termination during the probation period or before the expiry of a fixed-term contract - whether it is a termination by the employer or a resignation by an employee.

The seasonality experienced by certain sectors must also be taken into consideration – a one-size-fits-all approach is not possible. One must also carefully identify those other sectors and specialisations which, like healthcare, constantly experience significant and persistent shortages.

Eligibility for additional TCNs based on workforce percentage: Does this workforce size include only direct employees or also subcontracted workers through temping or outsourcing agencies? 

Seasonal work permits: Introduce seasonal work permits with multi-season renewal options. Companies would benefit because recruitment overheads would decrease while employees would benefit from employment security and longer-term employment.

Prioritising Maltese and EU nationals: Certain industries face persistent shortages of local and EU workers so the proposed bands to address this reality should be revisited. While a specific threshold or target is necessary to ensure fairness and balance, the approach must remain flexible enough to account for industry-specific challenges and workforce availability.

Study to determine market wage rates: The results of such studies, along with the methodologies used, should be made public to guide market operators. Wage adequacy should also be addressed when it comes to the expected output, as well as to identify, analyse and address other externalities which eat away at the take-home pay, such as the high rental prices, regardless of the type of occupation.

Authorities establish tailored MOUs with other countries: This initiative should benefit companies that operate ethically and have a proven track record of doing so.  Exploitative practices in this sector are the result of years of lack of inadequate regulations regulating outsourcing and temping.