Paga minima diċenti

Nhar it-Tnejn, waqt id-diskors tal-buġit konna infurmati biż-żieda statutorja annwali fil-paga minima. Kif nafu ser tkun żieda ta’ €1.75. Bosta ikkummentaw li dan mhux biżżejjed. Hi r-reazzjoni naturali li nisimgħu kważi kull sena.

Meta żieda fil-paga minima, li nirreferu għaliha bħala żieda għall-għoli tal-ħajja, ma tikkorrispondix ma kemm fil-fatt il-ħajja tkun qed togħla jinħolqu bosta problemi għall-persuni u gruppi vulnerabbli.  Meta żieda għall-għoli tal-ħajja ma tkunx adegwata, din tiekol ukoll mill-valur tal-pagi li jkunu għola mill-paga minima. Dan iseħħ minħabba li l-baskett ta’ oġġetti u servizzi li jintużaw biex permezz tagħhom titkejjel żieda fl-għoli tal-ħajja ma jkunx għadu jirrifletti r-realtà dwar il-ħtiġijiet bażiċi tan-nies.

Aħna, bħala partit ilna żmien nitkellmu dwar il-ħtieġa li jkun aġġornat il-kontenut tal-baskett ta’ oġġetti u servizzi li bih titkejjel l-għoli tal-ħajja u tkun determinata l-paga minima. Dan irid ikun aġġornat għaż-żminijiet.  

Il-Caritas f’Malta għamlet diversi studji dwar dan. L-aħħar wieħed li kien ippubblikat f’Diċembru 2020 kien jiffoka fuq tlett kategoriji vulnerabbli bi dħul baxx. Ir-rapport kien intitolat : A Minimum Essential Budget for a Decent Living. Jiena diġa ktibt dwar dan f’dawn il-paġni fi Frar li għadda.  Dwar familja li tikkonsisti f’żewġ adulti u żewġt itfal l-istudju tal-Caritas kien ikkonkluda li bil-prezzijiet tal-2020, bħala minimu, kienu meħtieġa  €14,000 f’sena għal għixien diċenti. Bejn wieħed u ieħor dak hu madwar  €4,000 iktar mill-paga minima attwali. Il-paga minima mhiex paga li tista’ tgħix biha. Min hu bil-paga minima qed jgħix fil-faqar minkejja li jaħdem.  

Qabel ma tħabbar il-buġit iktar kmieni din il-ġimgħa mill-Ministru tal-Finanzi Clyde Caruana, hu parla ħafna dwar proposta li qal li kien qed iħejji biex ikunu ndirizzati l-ħtiġijiet tal-persuni vulnerabbli lil hinn minn dak li tipprovdi l-COLA (Il-mekkaniżmu ta’ aġġustament fil-pagi għall-għoli tal-ħajja).  Imma meta qara l-buġit, minkejja li dam jaqra mhux ħażin, ma qal xejn minn dan. Irid jistudja iktar mal-imsieħba soċjali, qal!

Il-proċess konsultattiv dwar proposta għal direttiva tal-EU dwar paga minima diċenti ilu ftit għaddej. Il-proposta tfittex biex toħloq għodda aċċettabli ħalli bihom tkun tista’ tiġi mkejla kemm għandha tkun il-paga minima f’kull pajjiż individwali tal-EU. Fl-istudju dwar l-impatti ta’ din il-direttiva kien emfasizzat li l-paga minima tkun waħda adegwata meta tkun ġusta fil-konfront tal-pagi ta’ ħaddiema oħrajn u meta tipprovdi għal għixien diċenti.Dan fil-kuntest tal-kundizzjonijiet ekonomiċi tal-pajjiżi individwali.  Il-proposta tal-EU tfisser kif dan jista’ jsir b’għodda statistika.

Malta hi wieħed minn disa’ pajjiżi Ewropej fejn il-paga minima li titħallas skond il-liġi mhiex garanzija kontra r-riskju tal-faqar. Minkejja dan Malta hi wieħed mill-pajjiżi li qed jopponu l-introduzzjoni ta’ direttiva li tindirizza bis-serjetà l-adegwatezza tal-paga minima.

L-istudju tal-Caritas diġa żvela li l-paga minima jonqosha €4,000 fis-sena biex toqrob lejn paga diċenti. Iktar ma ddum ma tittieħed azzjoni din id-differenza iktar ser tikber. Huwa ferm aħjar li tiżdied il-paga kemm hemm bżonn milli jkunu ntrodotti servizzi soċjali addizzjonali biex jagħmlu tajjeb għan-nuqqas.  

Min jaħdem għandu dritt għal paga ġusta: il-paga minima mhiex waħda ġusta. Il-paga minima trid tkun paga li tista’ tgħix biha għax tkun tkopri l-ħtiġijiet bażiċi tal-familja. Għandna bżonn ekonomija sensittiva għall-ħtiġijiet umani.

M’għandniex noqgħodu nistennew soluzzjoni Ewropeja. L-istudju tal-Caritas ilu li wera lil kulħadd ir-realità. Imma  l-Parlament jibqa’ jinjora dan kollu.   Huma biss Membri Parlamentari eletti minn fost dawk ippreżentati minn ADPD li jistgħu jibdew it-triq għal deċizjoni li torbot ħalli l-paga minima tkun waħda li tista’ tgħix biha.

Ippubblikat fuq Illum: il-Ħadd 17 t’ Ottubru 2021

Minimum wage should be a living wage

During the budget speech on Monday, we were informed of the statutory (annual) increase to the minimum wage as of next January. It is a €1.75 increase, as we well know. Many have commented that it is not enough. It is a natural reaction which we hear about almost year in year out.

When an increase in the minimum wage, also referred to as a cost-of-living increase, does not correspond to the actual increase in the cost of living, it creates a lot of problems for vulnerable persons and groups. It also erodes the value of wages currently above the minimum. This occurs because the basket of goods and services used to gauge the cost-of-living increase is out of tune and does not correspond to what is actually occurring on the ground.

Greens have repeatedly insisted on the need to replace the current basket of goods and services used to determine the minimum wage. The contents of such a basket cannot be static as our needs change with time continuously.

Caritas in Malta has carried out various studies in this respect. The latest was carried out and published in December 2020 and focused on three low-income household categories. It is entitled: A Minimum Essential Budget for a Decent Living. I have already written on the matter in these pages (A minimum income for a decent living: 7 February 2021). In respect of a family composed of 2 adults and 2 children, it was concluded, in the Caritas study, that the minimum budget required at 2020 prices was slightly under €14,000. That is approximately €4,000 over and above the actual minimum wage. Those earning a minimum wage are clearly the working poor. The minimum wage is not a living wage

Prior to the budget announced earlier this week Finance Minister Clyde Caruana made many noises on a proposal that, he said, he was planning for the budget speech. The proposal he had in mind would address the needs of vulnerable persons which needs, the COLA (Cost of Living Adjustment) does not address. However, when push came to shove no such proposal materialised: the Minister declared that together with MCESD he will only study the matter further!

A consultation process on a proposal for an EU Directive on adequate minimum wages within the EU has been under way for some time. The proposal seeks to determine the manner in which an adequate minimum wage is to be determined. The impact assessment carried out relative to the EU proposals emphasises that “Minimum wages can be considered adequate when they are fair vis-à-vis the wages of other workers and when they provide a decent standard of living, taking into account general economic conditions in the country.” The EU proposal proposes the creation of a “double decency threshold” which would ensure decent minimum wages. This threshold is expressed in terms of the median and average wages in the different member states.

Malta is one of nine European countries where the statutory minimum wage does not protect minimum wage earners against the risk of poverty. Yet Malta is one of the countries which is opposing a mandatory EU Directive addressing the adequacy of the minimum wage!

The Caritas study has already revealed that the gap between the minimum wage and the required level of decency is to the tune of €4,000 per annum. The longer it takes for action to materialise the wider the gap will become.  It is the minimum wage which must increase, not government handouts.

Making work pay? The minimum wage should be a living wage: it should be sufficient for the basic needs of a family, but unfortunately it is not. We need an economy which cares.

We should not wait for an EU solution to our minimum wage problem. The Caritas study has indicated the way forward many moons ago. Yet Parliament keeps ignoring it!  Only Green Members of Parliament can ensure that Parliament addresses this decency gap thereby ensuring that the minimum wage is also living wage.

published in the Malta Independent on Sunday : 17 October 2021

A minimum income for a decent living

Within the European Union structures a debate has commenced on adequate minimum wages throughout the Union. Commission President Ursula von der Leyen had stated on her appointment that she would be proposing a legal instrument to ensure that every worker in the Union has a fair minimum wage.

The consultation process within the EU was launched over one year ago. As a result, a proposal for an EU Directive on adequate minimum wages has been finalised together with a number of supporting documents, including a 240 page long extensive impact assessment

In an explanatory memorandum published by the EU together with the text of the proposed Directive it is emphasised that “in the majority of EU Member States with national statutory minimum wages, minimum wages are too low vis-à-vis other wages or to provide a decent living even if they have increased in recent years.” In its impact assessment, the EU Commission calculated that an increase of national minimum wages according to the double decency threshold (60% of the median and 50% of the average wage) would improve the wages of around 25 million workers in Europe.

Malta is one such state with a low minimum wage which does not suffice, in particular, for vulnerable categories. A Caritas study published last Friday once more identifies short-comings of the minimum wage in Malta, when this is the only source of income for a number of vulnerable households.

The Caritas study entitled “A Minimum Essential Budget for a Decent Living 2020” follows previous studies published by Caritas in 2012 and 2016 as a result of which detailed research illustrates how the basic needs of vulnerable households, cannot be addressed if these households are dependent on one minimum wage as their only source of income.

The latest Caritas study concludes that a household comprising two adults and two children require €13947 annually as a minimum for a decent living, while if the household consists of a lone parent and two children this requirement drops to €11038. This is well below the 2021 statutory minimum wage which is currently €181.08 per week even if one also takes into consideration the June and December statutory bonus. On the other hand, the requirements of a household consisting of an elderly couple adds up to €8157 annually, concludes the Caritas study. This last figure, which is manageable, is however qualified in the Caritas report in that it may vary substantially due to the myriad of costs specific to the lifestyle and health status of the elderly.

The above excludes cases where the minimum wage earner needs to fork out expenses for a privately rented dwelling, in which case subsistence is practically impossible. The Caritas 2020 report emphasises that impact of the rent due “can dramatically affect the financial circumstances and quality of life of low-income households”.

The agreement signed by government with the social partners in 2017 as a result of which after one year in receipt of a minimum wage there are mandatory increases of €3 per week and an additional €3 per week after the second year, was a step forward and without doubt lessens the burdens of minimum wage earners. But this is certainly not enough. An overhaul of the method of calculation of the minimum wage is essential as this has to be reflective of real and actual needs. It has to be capable of sustaining a dignified living.

The recent news that the Maltese government is among the EU Member states which are objecting to EU legislation that would set up a framework regulating the minimum wage is worrying as the Maltese Government has been reluctant to take steps ensuring that the minimum wage is revised periodically to reflect actual needs. ADPD has long been advocating for this revision. However, the Labour government has repeatedly indicated that it was more interested in helping the wealthy get even wealthier. It was more interested in defending the crooks in its midst.

Our society needs to guarantee a basic income for all which is sufficient for a decent living. A number of countries are carrying out trials to identify the best way forward in this respect. The Universal Basic Income or UBI is being tested in a number of countries through pilot projects.

There is much to learn not just from these pilot projects. Malta’s Covid-19 wage supplement, for example, was a worthy initiative which merits further consideration. If properly applied it can form the basis of a long-term initiative to guarantee a minimum income for all. Obviously, it is easier said than done but we need to start some long-term planning which addresses the need to guarantee a minimum income for all thereby ensuring that all have access to sufficient resources to live a dignified life. This is the next step for the welfare state.

published in The Malta Independent on Sunday: 7 February 2021