Tuesday, May 2, 2017

Josef Vella’s UHM speaks about minimum wages, collective agreements

Leader of UHM Voice of the Workers Josef Vella says that among the most proud achievements is the union's contribution to the minimum wage agreement where a mechanism has been developed to ensure such wages do not stagnate.

He also speaks out about why he felt the need to call for the resignation of Malta's Police Commissioner Lawrence Cutajar.

What is the UHM celebrating this May Day?

UHM is the union which has managed to broker most collective agreements in the local labour market. The UHM is a pioneer and leader in collective agreements for the civil sector. We negotiated many of the government sectoral agreements and public sector agreements, even in the private sector.

The number of collective agreements that are concluded is also a testament to this.

Are collective agreements taking less time to negotiate?

This is something we had discussed internally and set a policy about. More often than not, when there is a collective agreement you know from when it is valid from but the expiration is unclear. We decided that this was not right, all works are done with a deadline. With pride, I can say we carried out the Malta Transport Authority collective agreement in three months. We did the Freeport collective agreement, which was complicated, in just four and a half months. This internal policy is having results and is being stuck to.People are seeking quality services from UHM, and this is what we are trying to deliver.

An agreement has just been reached on an increase in the minimum wage

As regards the minimum wage process, UHM contributed a lot tofind a long-term mechanism for the minimum wage to continue to update itself.

We did a paper and presentedit  to the PM and the Opposition Leader, as well as to the social partners and the position we presented was in relation to the mechanism, also used in European countries, so that the unions negotiating collective agreements, the parameters of the collective agreements determine the outcome of minimum wage for those not regulated by the collective agreements.

In the job market, we have workers who engage in social dialogue and we have those who don't. We cannot get into a situation where those not engaging in social dialogue determine the wages for those who are. The principle should be the other way round, and those engaging in social dialogue draft the conditions for those who aren't.

For this reason we worked out a mechanism where we get a weighted average: who are the people we want to give this minimum wage to? We see what the workers who carry out very similar work are being paid according to the collective agreement, and we work out an average wage that person outside the collective agreement should be earning.

"This is how the UHM contributed, by reviewing the minimum wage using a mechanism that would allow it to increase or adjust itself based on the way things are developing on the job market.

The government has met the idea of this mechanism positively, but it is not just about government. The social partners decided, with the blessing of the government, on the launch of a commission overseeing minimum wages. The agreement we have signed this week includes this proposal and is a strong signal for workers showing that their wages will not stagnate.

The job market is strong right now, this must leave trade unions in much stronger positions

The issue is this: right now, in the job market, you have many opportunities. A person who wants to work, can work, opportunities are there. This is something that as a UHM, we are not just pleased with this but we contributed to this situation.

We have lobbied social partners, the current government and all political parties about certain Jobsplus proposals, such as free childcare. This idea was taken onboard by the government, but it came out of UHM's proposals on jobs plus, as well as regards tapering benefits and in-work benefits.

Our proposals were so strong, that it took onboard the Jobsplus proposals and even switched the name of the Education and Training Centre to JobsPlus.

The UHM showed how it is truly a protagonist in the job market, and contrary to what some say, the UHM works with all those who are in government, despite which party is in power.

Whichever government has been in power, the UHM never switched off its engine and never stopped coming out with concrete solutions to ever-evolving problems.

The UHM has joined every PN demonstrations in the last four years. What do you tell people who criticise the UHM for being too PN leaning?

I can speak as the executive leader. During my time, when I presented JobsPlus to all political parties in 2012, I was called a Labourite. In 2015, when I participated in the protest against corruption, they called me a Nationalist. I am proud, because this means I take decisions based on the situation in front of me and not on the party flag being flown on the day.

Our decision to protest is never based on the political situation, but on the situation at hand.

I do not want to be one of those people who make their appearance known at demonstrations or events just to look like I am doing my job, I want to do my job effectively.

My duty is to take decisions on issues, and not the people behind the issues. I know that sometimes I favour one side, and at others I favour another side. When taking this type of stand, you ensure true independence.

When I addressed UHM workers I had said, let us enter the homes of all, from whichever political background they may come. Enter their home, go as far as the kitchen, but do not reach the bedroom. Meaning we want to work with all but we do not want to marry our union with any party.

This is the strength of the union, being able to take decisions to join national efforts without submitting to pressure from anybody.

The UHM called for the Police Commissioner's resignation following the most recent events. You were criticised for this.

My reaction to these developments usually is not to react, because in a situation so critical and with such national importance, somebody is trying to undercut my arguments in terms of trade unionism.

I do not want to play that game. When I said he should resign, I did not do this due to any pressure from  our police members. As everyone knows, we support the Police Officers' Association, but apart from supporting them, we are not dealing with  the issue.

I did not tell him to resign because of trade union interests, but because of the events that took place. Last week when we saw on television, something the whole nation was watching, the cameras running after these two people, leaving Pilatus Bank, with that luggage. Whatever was in it, maybe nothing, but it was shocking and it looked damning. One would expect the Police Commissioner would have had a reaction that reflected the situation, one that reflects the gravity and the seriousness.

Not as the executive leader of the UHM, but as a private citizen, I felt that he was making a fool of us.

His repeated comments of, 'thanks but I have nothing more to add at this time, I know how to conduct my work', were shocking. Knowing how to do your job is not enough, you have to do it properly.

I did not want to further any arguments with the GWU and the Police Officers Union, because I am not trying to gain anything from a trade union perspective, I felt it was my duty to comment because it appeared that Malta's institutions were not working properly.

Caution

Economic strength and growth do not just happen on their own, there must be certainty and a climate conducive to growth. I am uncomfortable that in the eyes of foreign countries, Malta is a country drowning in serious allegations.

I appeal for the necessary actions to be taken, and that this story does not get dragged out long and create serious problems for the economy. It is the families and local businesses that will suffer, it is the workers that would have to sacrifice in order to fix economic problems created through all these allegations.

Second Pillar pensions

The UHM must stress that we are one of the only EU countries without a second pillar, or occupational pension.

Workers must realise that from what they are earning they must save something each month for their future. The government must be slightly paternalistic in this regard, many are not earning the wage that they can ensure a solid private pension, so a joint contribution from workers and employers each month would ensure that nobody is living in poverty when they reach retirement age.

Many people are renting, or have one property, these people do not have a cushion.

Today's society consumes more, wants more, and saves less. For this reason I cannot understand why we are finding all these excuses not to have a second pillar pension.

The UHM has commissioned a study, and we want to present ideas with hard facts and figures to back them up. We take this very seriously and are spending a lot of time and effort to ensure a proposal that is fiscally responsible, makes sense, and ultimately ensures the livelihood of workers when they reach retirement age.



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