“We need solutions that work in practice, not ideas that sound good in theory,” says Malta Employers’ Director General Kevin J Borg, in a strong warning as Malta grapples with a record-tight labour market and mounting regulatory pressures.
As Malta continues to face increasing skills mismatches and businesses point at inadequate resources as one of the most persistent issues, policy debates around the four-day week, ESG compliance and pay transparency are no longer theoretical.
Malta Employers’ year kicked off with the launch of an ESG survey and a national stakeholder meeting on the four-day workweek.
Prior to the conference, the Association’s survey found that 56% of employers are opposed to a four-day workweek. Yet 44% did not completely rule it out.
“In itself, the four-day week is not a bad thing. It can have benefits for both the employer and the employee. If it works for both, then it should be exploited,” he argues.
The problem, he insists, lies in blanket approaches. In many sectors, physical presence is not optional so a four-day week cannot be win-win.
“Certain jobs need the physical presence of staff. If the worker is not available, the employer needs to either close for the day or bring in another worker at extra cost,” a realty already harshly compounded by an already strained labour market.
Malta imports around 20,000 workers per year and roughly 40% of the gainfully occupied are non-Maltese. In this context, Malta Employers’ position paper argues that a poorly designed shift to reduced working days could aggravate operational and cost pressures rather than ease them.
The study explores the experience of other European countries such as the Netherlands, an early trailblazer in this regard.
“Before taking this step, the Netherlands spent decades investing in high-tech, boosting productivity and incomes to the point where workers could afford to trade higher earnings for more leisure. Despite this, the Netherlands never legislated the four-day week.”
“Malta’s reality is still very different: productivity remains relatively low, and the economy is still largely labour-intensive, meaning fewer man-hours typically translate into lower output. The priority, therefore, should be investing in productivity-enhancing methods before considering widespread adoption of a four-day model.”
At the same time, Borg acknowledges that reduced hours and flexible work arrangements are increasingly being used as strategic tools to attract and retain talent. The Association’s survey found that 81% of companies that offering flexible arrangements do so precisely for this purpose.
“It is undeniable that today, work-life balance and flexibility are a top-most consideration for many employees,” he says.
“The shift predates COVID-19, but the pandemic cemented it and flexible work arrangements became a key factor in retention and attraction.”
For businesses, the shift brings both risk and opportunity. It requires investment in systems, management capability and digital infrastructure to support remote and hybrid models. Firms that adapt can gain a competitive edge but those that don’t, will struggle to compete for talent.
“This trend will only grow stronger, not weaker. There is a broader recalibration rather than a temporary adjustment. Today, flexibility is embedded in corporate culture”.
“A poorly designed shift to reduced working days could aggravate operational and cost pressures rather than ease them”
Recent comments by the Association which referenced children’s extra-curricular activities were misinterpreted as a call to reduce such activities; an allegation Borg firmly rejects.
“No one can deny the pressure on parents who have to leave work to drive their children around in traffic to extra-curricular activities like sports, drama, private lessons, religious lessons and so on.”
“Our proposed solution is not to reduce these opportunities for children but to organise them better. We are advocating structural reform within the education system, possibly even through including extended school hours that would allow such activities to be held on-site.
“By extending school hours, children can remain at their schools for their extra-curricular activities and parents can remain productive at their place of work relieving pressure on families and businesses,” Borg explains.
A real appetite for ESG
The Association also launched an ESG survey which revealed what Borg describes as a “real appetite” for environmental, social and governance principles among Maltese businesses.
“Companies increasingly recognise ESG not as a box-ticking exercise but as a marker of quality and excellence that enhances reputation and long-term value. Enthusiasm alone, however, will not deliver results. For ESG to succeed in practice, businesses, particularly smaller ones, need clarity, skills and resources.”
Malta Employers is calling for a coordinated national strategy that ensures ESG principles help the country transition towards a sustainable and socially responsible economy.
“This coordination is essential in a small economy where regulatory shifts can have outsized consequences,” he added.
No surprises, please
Borg notes how Malta Employers is currently actively discussing the EU’s Pay Transparency Directive, set to be transposed into Maltese law by June and how the Association is participating in deliberations on the Employment Relations Board, where pay transparency and the reform of the Industrial Tribunal are on the agenda.
With a general election expected in 2026, the Association is also preparing a memorandum outlining its priorities for the next legislature. The Association has already issued a public warning to political leaders against “unpleasant surprises” for companies and against competitive electoral promises that risk undermining competitiveness.
In a labour market marked by acute shortages, tighter migration rules and rising demands for flexibility, public sector recruitment remains a key concern.
Malta Employers has long called for a halt to non-essential government hiring at least six months before a general election, restricting recruitment to strictly necessary replacements. The aim, Borg argues, is to avoid politically driven expansion that strains the private sector and undermines economic sustainability.
“Whether discussing the four-day week, ESG compliance or pay transparency, reforms must support, not stifle responsible employers.”
