The increase for the cost of living (COLA) should be given in full and should no longer be taxed as at present a chunk of this compensation is going back into the Government’s pocket. Similarly, the social security contribution should not be taxed.

UHM Voice of the Workers made this call during a conference marking Workers’ Day  which focused on the cost of living, traffic, and employment challenges.

From a survey carried out by UHM it transpired that from January last year, a the expense of a supermarket basket for a family of four increased by an average of 12%, i.e. around €16. This means that both last year when COLA was €1.75, as well as this year when this compensation rose to €9.90 per week, the compensation was eclipsed by the increase in the price of essential supermarket products. The situation is more alarming, when considering that the majority of workers do not receive the full COLA as part of it is deducted as tax. Therefore, the UHM is calling for this anomaly to be addressed, in a bid to leave increase spending power without raising wages.

The UHM CEO expressed concern the outsourcing and subcontracting core operations was undermining the principle of equal pay for job of equal value. Josef Vella expressed his hope that ongoing talks within the Employment Relations Board, regarding changes to the law, would address such abuses rather than result in the creation of grey areas.

He also referred to instances whereby foreign workers from certain countries were being exploited and given inferior conditions to the detriment not only of themselves but also of Maltese workers. This is also eroding the collective bargaining powers of Maltese workers.

The UHM CEO also referred to the importance of solidarity among workers and warned that if the culture of individualism will increase, it would spell trouble across the board.