The tragedy of losing your job

Loss is a major tragedy whenever it happens. Losing a job, especially for a breadwinner, but in actual fact for any employee, is a definite blow even to one's ego. On September 14, 2001, the late Pope John Paul II, referring to the encyclical Laborem Exercens emphasised that work is the key to all social problems. He was addressing an international symposium of the Pontifical Council for Justice and Peace on the 20th anniversary of the famous encyclical.

At the present moment, I am more than certain that there is not one single soul in this country that is not deeply saddened by the termination of employment of the 850 Denim factory workers. It is for this reason that I wanted to look at what is hitting our labour market and what could be a plausible cause for such a loss.

There are three major factors that have affected our labour market.

The first is an imbalance and change in international economies that has resulted in a much slower economic activity in most advanced European economies such as in Italy, Germany and France. Contemporaneously, there has been substantial economic growth in China, India, Pakistan and eastern European countries as well as some in North African countries. Recently, Italian president Carlo Azeglio Ciampi, while addressing Italian workers, clearly told them not to be afraid to face the challenges that China and India were offering. He looked to a united Europe as a major force to face such a challenge. This shows that other developed countries are on the same footing as we are.

Secondly, the manufacturing and services sectors have continued with a major restructuring process in order to keep up with the cut throat competition in these fields. This translates into loss of jobs in certain areas. We have seen this happening in our country with loss of jobs in the textiles and leather industries, with enterprises having moved to Eastern Europe and North Africa. On the other hand, the field of information technology and the pharmaceutical industry have seen a major increase in their work force.

The third factor is a breakthrough in the restructuring of the public sector. This needed to address two main issues: an improved efficiency in the manning of the sector as well as better use of human resources. Up to September 2005, this sector has seen a reduction in its work force of 1,302 employees. In Malta's present context this has had a positive effect. While decreasing costs in the public sector it has created more flexibility thus freeing up more workers for the private sector.

Furthermore, the pressure on increasing wages has also diminished. The end result of all this restructuring in the public sector is a substantial increase in our country's competitiveness.

Even though Malta has gone through the above changes, one must say that over the past year it has seen an increase in full-time and part-time employment by 4,034. Going hand in hand with this phenomenon there has been a drop in unemployment of 1,045. Part-time employment alone has seen a drastic increase of 10 per cent over the same period. Part-time employment as a main employment has increased by 10.5 per cent, while part-time complementing full-time employment has increased by 10 per cent.

Some people contend that an increase in part-time employment is a negative trend. This is a mistaken notion for a number of reasons. First and foremost it is a phenomenon of all advanced economies.

Secondly, part-time employment boosts the economy of a nation. Thirdly, part-time employment is profitable and offers good flexibility to its employees. This also results in economic flexibility which further increases competitiveness and not decreases it as is being implied.

Our government is committed to trying to help those workers losing jobs in sectors which themselves are losing ground in advancing economies, to seek alternative employment. Both the Employment and Training Corporation and the Malta Employers Association have pulled strings to help achieve this. The task is arduous. Politicising it will definitely not help. This is a time when we need to show solidarity and not enter a blame game. Solidarity has and will always been the great asset of the Maltese.