Overlooking the 4-day week implications risks damaging Malta’s economy – Malta Chamber

The Malta Chamber of Commerce, Enterprise and Industry noted Wednesday that while the concept of a reduced work week is a topic of global debate, it is essential to move beyond brief statements that raise more questions rather than give answers and sustainable solutions.

The chamber was referring to the recent proposal by the Opposition Leader for the introduction of a 4-day work week, a proposal which is also included in the General Workers’ Union budget wish-list.

Implementing a 4-day work week is a multifaceted issue that requires careful and open discussion, the chamber said. Only through thorough and objective analysis can the interests of employers, employees, and the broader economy be safeguarded. Proposals should be presented in detail, to allow for comprehensive evaluation and feedback. Oversimplified statements on such impactful matters have far-reaching dangerous consequences for businesses, employees, and the economy at large.

A shift to a 4-day work week would have significant negative effects in several key areas, including productivity, output, labour costs, and international competitiveness. Sectors that rely heavily on physical presence or high hourly output – such as manufacturing, hospitality, health and care homes – would face immediate challenges. Malta’s current economic landscape, marked by a historically low unemployment, significant dependence on foreign labour, and low productivity, must be considered. Ignoring this context could worsen labour shortages and ultimately harm national productivity.

Before any policy or pilot program is introduced, a comprehensive national socio-economic study is essential to assess the short and long term impacts across all Malta’s economic sectors, the chamber said. Such research would capture the interconnectedness of Malta’s different economic sectors, something which an ad-hoc isolated pilot programme cannot.

Such a sensitive subject should not descend into a populist narrative. We need decisions to be taken sensibly rather than based on guess work. As election frenzy start building up, political parties should steer away from descending into the traditional populist game of which party or candidate promises the most – ultimately, unsound measures and irresponsible proposals will be borne by taxpayers, the chamber said.