‘Confused and dysfunctional policy’ on foreign workers

The government is pursuing “a confused and dysfunctional policy” by importing tens of thousands of low-wage third-country nationals to keep the economy going, according to representatives of Malta’s business community.

Leading businessmen in the hotel and hospitality sectors told The Shift that the prime minister responded to last June’s electoral drubbing by giving the impression that the number of foreign workers will be restricted, starting with those working for transport platforms like Bolt — even as Parliamentary Secretary Andy Ellul boasts about how many new licences were issued to recruitment agencies.

“This is a dysfunctional government where it is evident that the right hand does not know what the left is doing,” a hotelier told The Shift.

“How can you have a prime minister saying he is taking action to lower numbers when his own office, through Ellul, is issuing licences for recruitment agencies, left, right and centre?”

Earlier this month, during a visit to the Department for Employment and Industrial Relations (DIER), Ellul said the government had already issued 84 licences for recruitment and temping agencies to import workers into Malta.

He also lauded the department’s efficiency in considering the issuing of another 90 licences.

Meanwhile, Prime Minister Robert Abela is making political speeches announcing measures to restrict the importation of low-skilled workers, insisting they will only be allowed in where necessary.

Abela said the government is not issuing new licences for drivers and transport workers because the market is saturated, without producing evidence to back his claims.

Recruitment agencies are among the main reasons for the massive increase in the number of foreign workers entering Malta’s employment market over the last ten years.

The government encouraged an economy dependent on numbers, and recruitment agencies flourished in a completely unregulated market where rogue operators do as they please and compete unfairly with serious agencies. One in every three workers is now a low-paid third-country national, the latest NSO figures show.

The government has introduced a law obliging recruitment agencies to obtain an operating licence but industry sources say the exercise is cosmetic.

“The government had a golden opportunity through the new licensing regime to try to introduce some order in the sector and eliminate bad apples,” industry sources said. “However, we are not seeing this happening, as those operating a recruitment agency from their own home are still managing to obtain a licence.”

DIER, the agency responsible for licensing and regulating the sector, is refusing to state the number of licences processed.

The department has very few inspectors, and licence holders are rarely checked.

DIER turned down The Shift’s request to publish the list of authorised recruitment agencies.