Malta’s rapid economic growth over the past 10 years, particularly in the healthcare, finance and ICT sectors, has led to a problematic shortage of labour that has required a heavy rise in the number of foreign workers.
The government, however, pushed for imported cheap foreign labour without giving any consideration to the need to upgrade our infrastructure, education and healthcare, with obvious consequences.
A number of landlords have taken advantage of the situation by accommodating a far larger number of migrants than allowed by law, while charging them high rents.
Former finance minister Edward Scicluna had insisted that cheap labour was required for Malta’s economy to remain competitive but he was contradicted by his successor, Clyde Caruana who has said that our economic model needs to be overhauled. In reality, the country’s cost competitiveness is being placed under pressure by a shortage of local talent as young nationals keep leaving the country.
Disgraced former prime minister Joseph Muscat was the main force behind this cheap foreign labour strategy. He tried to justify his government’s economic model by stating that migrant workers are brought over to work in the sun and break their backs doing unskilled jobs such as picking up the rubbish in the streets. He said he did not want the Maltese to do such jobs.
Muscat also contended that the increase in foreign workers translated into a corresponding increase in national insurance contributions. It is likely that these workers leave the country without benefitting from a pension so their contributions could be used for the needs of Maltese nationals.
Muscat brushed aside his moral and ethical obligations towards those most in need.
Migrant workers are constrained to accept lower quality jobs since the law provides for their deportation if they lose their job and are unable to find new employment and prepare the required documentation within 10 days.
Migrant workers are also those mostly subjected to dangerous working conditions. This is evidenced from the relatively high work-related accidents and fatalities in which they are involved, particularly in the construction industry.
A balance between economic growth and sustainable development is needed- Denis Tanti
The government is not only failing to provide assistance to exploited foreign workers but is manifestly facilitating their exploitation by unscrupulous employers who are lining their pockets as a result of their hard labour.
A situation has been reached where the number of legally employed foreign workers has reached a quarter of the total country’s workforce.
The most notable increase in the number of non-EU workers is from Asian countries such as the Philippines, India and Nepal, who are often employed in the lowest paid jobs receiving a minimum wage of €193.73 or less for a 40-hour week.
The finance minister is anticipating that the country’s population will increase to 800,000 by 2040, with the Maltese ending up as a minority. He considers the present economic model built on cheap labour to be unsustainable and feels that, unless it is quickly overhauled, Malta risks losing its competitiveness.
Ironically, Caruana is the same person who, during his seven-year term as CEO of JobsPlus, had pushed the agency to attract more foreign workers to Malta. When he left his position in 2020, the number of such workers had climbed up to 70,000; an increase of 10,000 over the previous year.
Confusion continues to reign within the Labour camp as Economy Minister Silvio Schembri disagreed with Caruana and insisted that it is not the government’s vision to change the current economic model because it is still working.
Prime Minister Robert Abela seems to be siding with Schembri on this matter. What matters to him is that the national insurance contributions by foreign workers keep coming in and the economic wheel keeps turning.
A new economic model that offers a balance between economic growth and sustainable development is urgently needed. Such a model would be one that gives due consideration to quality of life and the preservation of the environment.
Denis Tanti is a former assistant director at the health ministry.