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Prime Minister Abela Instructs Jobsplus to Update Employment Strategy for Third-Country Nationals
Last changed: July 28 2024 13:06 by PCLMedia
In an effort to enhance control over the Maltese labor market, Prime Minister Robert Abela announced two new governmental measures: the regulation of temporary employment agencies and the introduction of a skills card specifically for the hospitality sector. Speaking on ONE Radio, Abela emphasized that the government has tasked Jobsplus, Malta's employment agency, with revising its strategy concerning the employment of third-country nationals (TCNs) in Malta.
During his radio address, Abela asserted the government’s commitment to making decisions that prioritize national interests. “In the coming weeks, following extensive consultations, we will unveil updated plans. These decisions will be ambitious rather than superficial, as I believe Malta should employ only the necessary number of foreign workers,” he declared.
Strategic Employment Decisions
Abela highlighted the need for more health and care workers while noting that the markets for cab drivers and food couriers are currently saturated, necessitating careful strategic planning. “We have enough foreign workers in these sectors, and a decision to refuse new work permit applications has already been implemented,” he stated.
He also issued a stern warning to employment agencies about attempts to circumvent these regulations, emphasizing that any such efforts would result in the rejection of applications. “We will not allow the majority to suffer for the benefit of a few. Even if the few make the most noise and apply more pressure, we understand the true needs of the many and will act accordingly,” he said.
Addressing Market Saturation
Recent reports from the Times of Malta indicated that hundreds of TCN work permit applications have been refused. On Friday, the government confirmed that new applications for cab drivers and food couriers by TCNs are being turned down due to market saturation. However, Abela reassured that these decisions would not affect workers who are already legally employed in these sectors.
“Our actions are aimed at incentivizing employers to treat their workers with dignity. A high turnover of workers is not in their interest because, from now on, replacing workers at will won’t be an option,” Abela explained.
Impact on Local Wages
The Prime Minister’s strategic employment measures are expected to have a significant impact on local wages. By regulating the influx of foreign workers, particularly in saturated sectors, the government aims to stabilize or potentially increase wages for local workers. The presence of a large number of foreign workers in certain industries has been cited as a factor contributing to wage suppression, as employers often opt for cheaper labor, which can undermine the earning potential of Maltese workers.
By limiting new work permits in saturated fields like cab driving and food delivery, the government seeks to create a more competitive environment where employers must offer better wages and conditions to attract and retain local talent. This move could lead to wage growth in sectors where salaries have been stagnant due to an oversupply of labor.
Abela emphasized that these changes are designed to encourage fair compensation and improve job security for Maltese workers, ensuring they are not displaced by cheaper foreign labor. This approach aligns with the government’s broader objective of fostering a labor market that supports sustainable economic growth while addressing workforce needs.
Effects on the Local Economy
The changes in employment policy are also expected to have broader effects on the local economy. By reducing the reliance on TCNs in saturated sectors, the government aims to achieve several economic benefits:
1. Increased Job Opportunities for Maltese Workers: By curbing the number of new foreign workers in certain fields, Maltese nationals may find it easier to secure jobs, potentially reducing the unemployment rate and increasing economic participation among local citizens.
2. Enhanced Worker Productivity and Skills: The introduction of a skills card in the hospitality sector aims to ensure that foreign workers are adequately trained, improving service quality and productivity. This can enhance Malta’s reputation as a tourist destination and attract more visitors, bolstering the economy.
3. Stimulated Economic Growth: As local wages increase, consumer spending is likely to rise, boosting demand for goods and services. This can lead to greater economic activity, benefiting businesses and fostering economic growth.
4. Protection of Maltese Businesses: By regulating temporary employment agencies and preventing exploitative practices, the government aims to support legitimate businesses and encourage fair competition, ensuring a stable economic environment for local enterprises.
5. Focus on Strategic Sectors: The measures prioritize the employment of foreign workers in critical sectors such as healthcare, where there is a genuine need. This strategic focus ensures that Malta has the necessary workforce to support essential services, which is crucial for the well-being of its citizens and the economy's stability.
Focus on Strategic Workforce Planning
Abela underscored that the crackdown on work permits is part of a strategic decision based on labor market analysis, ensuring that Malta employs only the foreign workers it truly needs. He mentioned two key initiatives: regulating previously unregulated temping agencies and introducing a skills card for the hospitality sector, ensuring foreign workers receive proper training.
Addressing populist views, Abela acknowledged the necessity of foreign workers in specific sectors, such as healthcare. He emphasized that the government’s measures are “ambitious, not cosmetic,” aimed at delivering tangible results. He also highlighted Jobsplus's intent to conduct a thorough review of the labor market from the perspective of economic migration.
Abela reiterated that Malta has sufficient foreign food couriers and Y-plate taxi drivers, stressing that work permit refusals will continue. He cautioned agencies against attempting to exploit the system by bringing in foreign workers under false pretenses. “There is no room for these games. Don’t waste your or the authorities’ time,” he warned.
While asserting that the government is not targeting the sector indiscriminately, Abela emphasized a focus on strengthening and expanding legitimate and serious businesses. The government intends to invest in and support these businesses, as it has always done.
Conclusion
These measures reflect the government's proactive approach to labor market management, aiming to balance the needs of Maltese workers with the realities of economic migration. By updating employment strategies and implementing stricter controls, the government seeks to foster a labor market that supports sustainable economic growth, protects local wages, and addresses the country's workforce requirements. This strategic approach ensures that Malta’s economy remains resilient, adaptable, and capable of meeting the demands of a dynamic global landscape.
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