The controversy about the minimum wage in contemporary industrial relations in Malta

Abstract

The subject of the 'national minimum wage' hit the headlines in Malta in June 2003 after Eurostat published the results of a study highlighting Malta's minimum wage standing in relation to some European Union Member States, Acceding and Candidate Countries. This publication brought about a controversy about Malta's Wages Policy, involving the Federation Of Industries, trade unions, politicians and other independent industrial relations observers. In this Long Essay, a holistic look will be given to the minimum wage in Malta and its weight in contemporary industrial relations. Chapter 1 brings the subject into focus through a brief account of the history, development and legalistic framework of the minimum wage in Malta. In Chapter 2, Malta's level of earnings vis-a-vis other European countries will be examined through statistical comparisons. Chapter 3 focuses on the various arguments that arose after the publication by Eurostat. In Chapter 4, we will be looking at how many minimum wage earners we have in Malta's labour market and at who they are. The final Chapter discusses the arguments brought forward in this controversy, considering the competitiveness of the local industry and our findings about the state of Malta's labour market and the situation of contemporary full-time workers who earn the minimum wage. Recommendations will also be made in this conclusive chapter.