Tista' taqra bil- Malti.
The Pro-Rector of the University of Malta and Professor Godfrey Baldacchino has stated that Malta’s economy is facing a critical juncture.
In a post on Facebook, Prof. Baldacchino said that the overall demand in most sectors is down, the tourism sector is in free fall and the sales of certain products are down by 80 to 90%.
Prof. Godfrey Baldacchino explained how this situation may last another 3 months and probably longer.
The UoM Pro-Rector has also suggested a number of measures for the government to work out in collaboration with the relevant authorities and stakeholders ;
- No redundancies.
- A reduction of 20% in all wages and salaries, inclusive of all cash bonuses and allowances, for all employees in Malta on a contract of service and earning 20,000 euros or more per annum. The exceptions would be employees in the health sector and any other deemed ‘essential’ service grades
- All employees to shift to a 3-day week with their regular working hours reduced by 40%
- Government to refund 10% of the wages and salaries of private sector employees working on reduced hours
- Employees aged 59 or over to be offered early retirement packages.
Prof. Godfrey Baldacchino suggested that these measures could kick in with effect as from April 1 and for an initial period of 3 months, subject to evaluation and possible extension.
“The current danger is for business to issue mass redundancies and contribute to mass unemployment. And the foreign workforce that has kept our economy going of late will then have no choice but to leave. While it may appear inevitable in the short-run this approach would, in my opinion, be the wrong strategy, and undermine Malta’s long-term competitiveness” wrote Prof. Baldacchino.
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