The proposed Malta Labour Migration Policy has drawn ample criticism namely for its ‘one-size-fits-all’ approach that fails to address the unique challenges faced by different industries. ‘A lot is being said and criticised, but not openly,’ is a recurrent comment in business circles.
Launched earlier this year, the policy outlines 32 recommendations and seeks to regulate the employment of third-country nationals (TCNs).
Several business owners and industry leaders are highlighting inadequate provisions for migrant workers’ integration, excessive bureaucracy and cost burdens with proposed measures threatening to stifle economic growth and hinder businesses already struggling with workforce shortages.
They are calling for a more flexible migration strategy tailored to the specific needs of individual sectors.
Their argument considers the high competition for skilled professionals and the way that the proposed policy fails to differentiate between low-skilled and highly qualified workers, calling for wider exemptions that include sectors like finance, technology, and hospitality, sectors that continue to struggle to find the right talent.
Maria Cauchi Delia, CEO of the Malta Institute of Accountants describes attraction and retention of talent as a major challenge for the Maltese financial services industry and the wider economy. She calls for strategic decisions at a national level to ensure that the industry has the necessary skills to grow, with a recognition that for the foreseeable future, this will require the participation of European and third-country nationals.
“We are calling for a sector-specific approach which highlights the importance of recognising the needs of those sectors that offer high value-added potential to the Maltese economy”.
Cauchi Delia says that it is positive that the proposed labour migration policy addresses various areas such as retention and stability, employee rights and working conditions, but believes that such policy should allow wider flexibility that allows the financial industry to recruit and retain the best available talent, irrespective of nationality.
“This flexibility is essential given the high competition for skilled professionals, and failure to do so will hinder the growth and opportunities which the sector offers. It is also important that this policy is aligned more closely with other national strategies, such as education and infrastructure plans, to promote long-term development.”
Robert Ancilleri, CEO of Embark (Malta) Limited and an accountant by profession considers the document, a one-size-fits-all approach which ignores the specific needs of particular sectors, age groups and different ethnic groups.
“As proposed, this policy fails to adequately address the integration of migrating workers’ family members into Maltese society or ensure a decent standard of living for TCNs, including affordable housing and ongoing professional and personal development.”
“It also fails to make a distinction between the public and the private sector, given that the public sector is one of the causes why the private sector is experiencing shortages in certain skills as a result of an over-supply of workers in the public sector,” he added.
Ancilleri explains that thresholds set for several recommendations such as the minimum termination rates, workforce application limits and minimum number of MT/EU nationals before application for TCNs should take into consideration the peculiarities of the different economic sectors, not company size.
“These thresholds risk crippling the business operation of many entities and put a severe strain on the current workforce.”
According to hotelier Simon De Cesare, CEO of Eden Leisure Group, while proper discussion on migration and streamlined processes to curb existing abuse is needed, the migration policy leaves a lot of gaps and as originally distributed, it does not cater for the needs of the hospitality industry.
“The reality is that hotels and restaurants rely heavily on TCNs because most local and EU workers do not want to work in this industry. If the government is not going to disincentivize those industries that require mass importation of low-skilled workers, then it is highly unfair to just turn off the tap on other more vital industries such as the hospitality industry which contributes so much to the country’s economy,” he explains.
De Cesare notes that while the pegging of TCN applications to staff turnover is not necessarily problematic, it does not suit a hospitality industry which is heavily reliant on seasonal workers employed on short-term contracts.
“Including all these employees in turnover figures brings many hotels and restaurants close or over the threshold needed to apply for TCNs,” he added, noting also how doubling application fees will continue to place more burdens on the industry.
“Over these last years, we already had to suck up fees related to the BCRS and Skill Pass schemes and now, this is yet another cost the industry will need to endure.”
De Cesare questioned why exceptions and appeals to restrictions are being done through Malta Enterprise when the hospitality industry is regulated by the MTA, the entity that understands the industry and can best determine if industry players should be sanctioned or not.
“Policies are important but the hospitality industry needs the labour force to operate and less bureaucratic processes and fees, not more.”
