The General Workers Union will not accept any changes in the COLA
mechanism. The COLA agreement that came into force in 1990 was agreed
between all social partners – employers, trade unions and Government. During
the last 32 years, the agreement has never changed, and the proposal being
made by the employers will mean a violation of the law.
“When in the past an employee was given few cents according to the
mechanism, it was accepted because it was according to what was agreed, so
now that the cost of living adjustment will be high, it cannot be touched either.
It is good to keep in mind that the COLA is given to everyone to maintain the
same purchasing power. Whilst the employers remarked that the COLA
increase must not be given in full to those employees who have already
received wage increases in the last 12 months, we stress that no one can break
an agreement between all the social partners”, said the GWU.
The GWU added that as the Government is taking the necessary measures to
maintain competitiveness, by absorbing the cost of electricity, water, fuel and
cereals, Malta will continue to maintain its competitiveness with other
countries. In fact, Malta remained among the European countries with the
lowest inflation rate. While when it comes to productivity, trade unions always
take care to agree on the enterprise level. In addition, in each collective
agreement there is a clause with a clear reference about COLA, if it is inclusive
or not.
“In a historical context this mechanism agreed between the social partners
helped to stabilize industrial relations, as the inflation part was countered. If
we go back from this it will definitely create an industrial unrest”.
