By Times of Malta
Demographic challenges have made the recruitment of third-country nationals a necessity for most essential and other business services. Malta鈥檚 dependence on third-country nationals increased exponentially over the past decade, mainly due to economic policies that encouraged growth in labour-intensive industries, particularly in construction and the tourism sector. The growing popular discontent over the consequences of importing more third-country workers in a country that has obvious physical limitations, high property price inflation, a congested road network, and overstretched public services has arguably convinced policymakers that the overdependence on imported labour has to be addressed. Rather than setting limits on how many third-country workers businesses could recruit based on the researched needs of the economy, the government introduced regulations aimed at controlling the laissez-faire labour market policies of the past 13 years. One such regulation was the introduction of skills passes, which were made mandatory for third-country workers in the hospitality sector last year. The pass requires workers to sit for an online exam and an interview that focuses on basic skills, as well as proficiency in the English and Maltese languages. The skills pass requirement will become effective for Maltese and EU nationals working in the tourism industry on January 1, 2027. The government also wants to expand skills pass requirements to encompass all workers, irrespective of where they work. The Association for Temping and Outsourcing Agencies (AFTA) fears that the new requirement risks adding 鈥榬ed tape鈥 and making Malta less competitive in what it decries as 鈥渢he global war to attract workers鈥. AFTA is undoubtedly aware that the laissez-faire labour market practices for importing third-country nationals in the last several years are unsustainable. They often lead to workers鈥 exploitation, poor service levels for local consumers, and the business community鈥檚 increasing inclination to treat labour as a disposable commodity that can be hired and fired as needed. While most people acknowledge that labour market policies must ensure that all workers are treated ethically and fairly, many employers prefer to self-regulate on industrial relations to remain 鈥榗ompetitive鈥. It would have been ideal for the government to address the dangerous overdependence of many economic operators on low-cost labour to optimise their profits. Introducing administrative barriers can lead to confusion. Still, insisting that all foreign workers must have adequate communication skills to work in Malta is correct. The extension of this requirement to all sectors of the economy is also a step in the right direction. The broader challenges posed by the increasing dependence on the importation of third-country nationals, primarily from low-cost countries, are not being addressed with the urgency and openness they deserve. This is unfortunate. Still, in the absence of public policymakers鈥 leadership in economic transformation, the business community must understand the importance of investing in human capital and technology to reduce the dependence on imported labour. Being able to communicate well in English is today one of the requirements most countries insist on, even if their native language is not English. It is time for a manpower study to be conducted to determine the number of foreign workers the country will need over the next 15 years, the communication and other skills they will require, and the level of compensation that their employers can expect to pay to weed out exploitation. Only in this way can the business community plan for the future.